If you haven’t made it a habit of reading Berkshire Hathaway’s Chairman Warren Buffett’s annual letter to shareholders, make it a point to do so. There are so many nuggets of wisdom and relevant information in each one, and this year (2010 annual report) is no different. I have read it and wanted to share a couple of his quotes on the future of our country, and how he is playing it.
America The Exceptional
Buffett is still quite bullish on the prospects on the future of America and is still putting his money where his mouth is. Evidently he is not listening to the gloom and doomers proclaiming the end of the American economic story and all of the harping about budget deficits, ballooning debt, and the loss of economic power to China and India. Check out this money quote from the Oracle:
“Throughout my lifetime, politicians and pundits have constantly
moaned about terrifying problems facing America. Yet our citizens now live an astonishing six times better than
when I was born. The prophets of doom have overlooked the all-important factor that is certain: Human potential
is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders
for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and
effective.”
Reading something like this from such an influential investors makes you want to go out and open a brokerage account and buy S&P 500 index funds on margin. It’s nice to actually get a long-term perspective that isn’t affected by daily or even annual movements. Buffett famously stated that his purchase of railroad Burlington Northern Sante Fe was an “all-in” bet on the American economy.
Buffett goes on to say: “Last year – in the face of widespread pessimism about our economy – we demonstrated our enthusiasm
for capital investment at Berkshire by spending $6 billion on property and equipment. Of this amount,
$5.4 billion – or 90% of the total – was spent in the United States.”
He is not just some politician wearing a flag on his lapel acting patriotic and spouting gibberish, he is putting huge amounts of cash where his mouth is, and somebody with his track record should certainly be listened to. I think all those pundits with no skin in the game who proclaim the death of America should read Buffett’s annual letter and commit it to memory.
Warren Buffett: A True American Patriot is an article from: 
