The 2013 Berkshire-Hathaway report, with its Chairman’s letter from Warren Buffett was released last week.
It’s a great read, (click here for the original letter) and there are always some actionable items for us non-professionals, including these quotes:
Both individuals and institutions will constantly be urged to be active by those who profit from giving advice or effecting transactions. The resulting frictional costs can be huge and, for investors in aggregate, devoid of benefit. So ignore the chatter, keep your costs minimal, and invest in stocks as you would in a farm…
… the “know-nothing” investor who both diversifies and keeps his costs minimal is virtually certain to get satisfactory results. Indeed, the unsophisticated investor who is realistic about his shortcomings is likely to obtain better long-term results than the knowledgable professional who is blind to even a single weakness.
My take? Educate yourself and always remember, only you truly care about your financial freedom.
Live Long and Prosper, Leah the MoneyDiva.com