Warren Buffett: Don\'t Bank On Double-Digit Returns

Warren Buffett: Don't Bank On Double-Digit Returns

Fortune   |  Colin Barr   |   February 29, 2008 04:34 PM


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Berkshire Hathaway had another excellent year in 2007, posting an 11% gain in net worth, CEO Warren Buffett said in Friday's annual report to shareholders. Berkshire has grown its per-share book value by a remarkable 21% annually since Buffett took the reins 44 years ago.

But as always, Buffett was quick to emphasize that past performance is no guarantee of future results. He predicts the Omaha-based company's insurance operations will be hit in coming years by narrowing profit margins and warned that gains at Berkshire - which operates businesses ranging from chocolatier See's Candy to private-plane timeshare company NetJets - will be constrained by the company's history of success.

"Berkshire's past record can't be duplicated or even approached," Buffett writes in the report, published Friday on the company's Web site at berkshirehathaway.com. "Our base of assets and earnings is now far too large for us to make outsized gains in the future."

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Go directly to Berkshire Hathaway's website to see Buffett's letter to shareholders.


 
 

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- MetalCanuck See Profile I'm a Fan of MetalCanuck permalink

I have a pension fund, they say I have to quit my job to get it out of their bank or get fired. Its only up to 4000 so I am not quitting but this is scary and I do not know how to save it.

    Favorite    Flag as abusive Posted 12:10 AM on 03/03/2008
- njdon See Profile I'm a Fan of njdon permalink

i suspect that being succesful in business is like winning a lottery. only one in a million wins the grand prize because of dumb luck. and after the goddess of dumb luck has blessed buffet, he starts believing that he is responsible for his success.

    Favorite    Flag as abusive Posted 08:00 PM on 03/02/2008
- WIpatriot See Profile I'm a Fan of WIpatriot permalink

Buffett warns about pension funds...something else we've been saying you need to pay attention.

    Favorite    Flag as abusive Posted 12:54 PM on 03/01/2008
- dora_rice See Profile I'm a Fan of dora_rice permalink

the man should be paying attention more to love and having a great time. Life is short. Time to take
a brake and travel with me to Switzerland for a vacation.

    Favorite    Flag as abusive Posted 12:19 AM on 03/03/2008
- mrcontinental See Profile I'm a Fan of mrcontinental permalink

Do yourself a favor and read the article twice. Remember this is Warren Buffett, one of the best EVER.
Then call him a chicken little since he states alot of what we have been saying here since this nightmare began in August. The stock market sucked from 1966 to 1982 many have forgotten this. The easy ride is over.

    Favorite    Flag as abusive Posted 07:38 PM on 02/29/2008
- curiousasheck See Profile I'm a Fan of curiousasheck permalink

Just be honest Mr. Buffet.

The wheels are coming off . . . and we're going to have a whole continent full of bankrupt, re-poed, and idle former WalMart shoppers, many of them with half of their skin tattooed and many of that bunch all revved up to "roll heavy and gun up" against the rich folks who screwed them.

    Favorite    Flag as abusive Posted 05:55 PM on 02/29/2008
- ibsteve2u See Profile I'm a Fan of ibsteve2u permalink

Buffett would never fit into this Administration - he'd have to start saying stuff like "Oh, sure - Berkshire Hathaway will return 40 or 50 percent next year. This 11 percent return is just a temporary slowdown."

    Favorite    Flag as abusive Posted 05:32 PM on 02/29/2008
- GRobSecular See Profile I'm a Fan of GRobSecular permalink

hahaha too true steve

    Favorite    Flag as abusive Posted 06:38 PM on 03/02/2008
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