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To: Ron McKinnon who wrote (38832)	3/10/2002 9:23:12 AM
From: Ron McKinnon	Respond to of 53068

some of that is dry but read every word sprinkeled throughout are gems

To: Ron McKinnon who wrote (38832)	3/10/2002 9:38:03 AM
From: Larry S.	Respond to of 53068

Buffett - thanks for the posting - a few snippets: Average Annual Gain – 1965-2001 Berkshire - 22.6% S&P 500 - 11.0% difference (Berkshire-S&P) -11.6% Overall Gain – 1964-2001 Berkshire - 194,936% S&P 500 - 4,742% difference 190,194% One final thought about Berkshire: In the future we won.t come close to replicating our past record. To be sure, Charlie and I will strive for above-average performance and will not be satisfied with less. But two conditions at Berkshire are far different from what they once were: Then, we could often buy businesses and securities at much lower valuations than now prevail; and more important, we were then working with far less money than we now have. Some years back, a good $10 million idea could do wonders for us (witness our investment in Washington Post in 1973 or GEICO in 1976). Today, the combination of ten such ideas and a triple in the value of each would increase the net worth of Berkshire by only ¼ of 1%. We need .elephants. to make significant gains now . and they are hard to find. Here.s one for those who enjoy an odd coincidence: The Great Bubble ended on March 10, 2000 (though we didn.t realize that fact until some months later). On that day, the NASDAQ (recently 1,731) hit its all-time high of 5,132. That same day, Berkshire shares traded at $40,800, their lowest price since mid-1997Average Annual But we do not believe Berkshire.s equity holdings as a group are undervalued. Our restrained enthusiasm for these securities is matched by decidedly lukewarm feelings about the prospects for stocks in general over the next decade or so. Charlie and I believe that American business will do fine over time but think that today.s equity prices presage only moderate returns for investors. The market outperformed business for a very long period, and that phenomenon had to end. A market that no more than parallels business progress, however, is likely to leave many investors disappointed, particularly those relatively new to the game. these are snippets. anyone serious about investing should read the whole post, then read it again. larry