2007 Berkshire Hathaway Letter to Shareholders Audio Version #BerkshireHathaway #WarrenBuffett #CharlieMunger #Audiobook #Investing

This letter includes Warren Buffett's famous quote about financial folly being exposed, "You only learn who has been swimming naked when the tide goes out..."

The 2007 Berkshire Hathaway Letter to Shareholders highlights:

Here are some key highlights from Warren Buffett's 2007 letter to Berkshire Hathaway shareholders:

- Berkshire's gain in net worth in 2007 was $12.3 billion, increasing per-share book value by 11%. Over 43 years, book value has grown at 21.1% compounded annually.

- Insurance results were again excellent. Float grew to $58.7 billion. However, Buffett warns the "party is over" and expects much poorer insurance earnings in 2008.

- Major new acquisitions included Marmon Holdings, a collection of 125 manufacturing and service businesses, for $4.5 billion. Acquisitions remain a key strategy.

- On investments, Buffett believes Berkshire's equity portfolio will deliver 6-8% growth in per-share earnings over the next decade, though a mega-acquisition could boost that.

- Buffett provides another warning about derivatives, using Berkshire's experiences as a cautionary tale. He remains leery of systemic risks from their proliferation.

- On executive compensation, Buffett derides the flawed systems and incentives currently in place at many companies. He argues the consequences are often perverse.

- Buffett discusses the challenges facing the newspaper industry, using Buffalo News as an example of declining economics. He remains optimistic about its future prospects.

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