Archive for February 2012
RT @waxpancake: Why I don’t feel bad about missing SXSWi this year in two URLs. 1. http://t.co/l0spMzH3 2. http://t.co/qy0U5ati
@dbedingfield That is a cry for help right there.
@luxuryluke The Luke Dorny Script: http://t.co/y6XTH3Qs

Choice Quotes from the 2011 Berkshire Hathaway Annual Report

I’ve been a Berkshire Hathaway fan since I was in 6th grade, and like many others, I always look forward to reading their annual report. It’s amazing that in the 46 years since Warren Buffett took over management of the company, there hasn’t been a single major down year for investors to fret about. When the S&P shed 9%, 12%, and 22% during the three-year dot-com 1.0 bust, Berkshire’s book value was up about 10%. During the 2008 financial crisis, the S&P dropped 37% while Berkshire only lost 9.6% (their worst year ever). Every Berkshire annual report is written in plain English and provides indispensable advice for all levels of investors, but there are always a handful of choice quotes that really make me proud to put a few pennies where Warren Buffett puts his. Among my favorites from this year’s report include:

  • “More than 98% of my net worth is in Berkshire stock, all of which will go to various philanthropies.”
  • “About 95% of … (our companies’ capital investments)… were made in the U.S., a fact that may surprise those who believe our country lacks investment opportunities. We welcome projects abroad, but expect the overwhelming majority of Berkshire’s future capital commitments to be in America. In 2012, these expenditures will again set a record.”
  • “People may postpone hitching up during uncertain times, but eventually hormones take over. And while ‘doubling-up’ may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure.”
  • “We now have eight subsidiaries that would each be included in the Fortune 500 were they stand-alone companies. That leaves only 492 to go. My task is clear, and I’m on the prowl.”
  • “The first law of capital allocation – whether the money is slated for acquisitions or share repurchases – is that what is smart at one price is dumb at another.”
  • “There are a lot of ways to lose money in insurance, and the industry is resourceful in creating new ones.”
  • “If something’s not worth doing at all, it’s not worth doing well.”
  • “Even in the U.S., where the wish for a stable currency is strong, the dollar has fallen a staggering 86% in value since 1965.”
  • “(A cube of) 170,000 tons of gold will be unchanged in size and still incapable of producing anything. You can fondle the cube, but it will not respond.”

… and the most profound passage of the entire report:

  • “Today, IBM has 1.16 billion shares outstanding, of which we own about 63.9 million or 5.5%. Naturally, what happens to the company’s earnings over the next five years is of enormous importance to us. Beyond that, the company will likely spend $50 billion or so in those years to repurchase shares. Our quiz for the day: What should a long-term shareholder, such as Berkshire, cheer for during that period? I won’t keep you in suspense. We should wish for IBM’s stock price to languish throughout the five years.”

That last bit is why no casual investor (and even many professional ones) should ever think they know even half as much about investing as Warren Buffett. For a compelling, uplifting take on where the U.S. economy might be headed, be my guest and read the rest.

@ietyler Nope. Not so into punk.
@ietyler Ok I only lasted one sentence on that one. Painful. Just painful.
@ietyler Lasted 30 seconds.
@ietyler Too much yelling.
Ridiculously awesome (and I presume expensive) paper etching by Paperlux: http://t.co/F7cnbFQv (via @andremora)
@skilletstfood Where you at? We’re jonesin’ for our Skillet fix over here! :)
Shared
How to travel around the world for a year:

Great advice for when you finally find the time.

LiveSurface:

A fantastic app for prototyping your design work onto real world objects like billboards, book covers, and coffee cups. This seems like just as great of a tool for people learning design as it does for experts.

50 problems in 50 days:

One man’s attempt to solve 50 problems in 50 days using only great design. Some good startup ideas in here…

How to Do Philosophy:

If you’ve ever suspected that most classical philosophy is a colossal waste of time, Paul Graham tells you why you’re probably right.

TIME: Why Medical Bills Are Killing Us:

Stephen Brill follows the money to uncover the pinnacle of corruption that is the U.S. Health Care system. A must-read article if there ever was one.

DIY Dot Org:

A beautifully designed site full of fun and challenging DIY projects. I could spend months on here.

The Steve Jobs Video Archive:

A collection of over 250 Steve Jobs videos in biographical order

Self-portraits from an artist under the influence of 48 different psychoactive drug combos.

Water Wigs are pretty amazing.

David Pogue proposes to his girlfriend by creating a fake movie trailer about them and then getting a theater to play it before a real movie. Beautiful and totally awesome.

Jonah Peretti's letter to BuzzFeed’s employees:

If you’re wondering what a excellent blueprint for a modern media company looks like, look no further than Buzzfeed CEO Jonah Peretti’s latest email to his employees. In it, Peretti explains a lot of his company’s virtues, the most important being a relentless focus on always providing what’s best for the user. Vox Media (operators of The Verge) is the only other company I can think of which approaches this level of reform and execution.

The Covers Project:

I love this so much: a cross-referenceable database of cover songs, searchable by song or artist. Slowed down, acoustic covers — no matter the song — are so enjoyable to me that I wish it was a requirement to play one at every show. If you like them as much as I do, make sure to check out M. Ward’s Let’s Dance or Sun Kil Moon’s entire album of Modest Mouse covers.

“More and more people in this country no longer make or do anything tangible; if your job wasn’t performed by a cat or a boa constrictor in a Richard Scarry book I’m not sure I believe it’s necessary. I can’t help but wonder whether all this histrionic exhaustion isn’t a way of covering up the fact that most of what we do doesn’t matter.”
- Tim Kreider’s denunciation of the cult of busyness is excellent. (via jimray)
The iPhone and Disruption: Five Years In:

Take your pick of about 20 great quotes from this Daring Fireball article. My personal favorite:

The iPhone is not and never was a phone. It is a pocket-sized computer that obviates the phone. The iPhone is to cell phones what the Mac was to typewriters.

sirmitchell:

Challenges of Getting to Mars: Curiosity’s Seven Minutes of Terror

The precision and innovation that is required for space exploration just blows my mind. I did not realize that Curiosity will have to basically land on Mars completely unaided by man, but it’s so much more complicated than that.