Rodent Regatta

Berkshire Hathaway’s latest quarterly holding report shows an 8 million share investment in Pier 1 Imports, Inc.

Guessing or gambling in futures contracts is not something I’m qualified to do. However, I invest with someone who knows that business well. He has now raised his bet against the future strength of the dollar to $19 billion. You can read what Reuters is reporting here. The back-drop for all of this is best understood by reading Bloomberg’s news release.

Also, note that this comes in the face of oil prices approaching $45 a barrel. As a nation, we are in debt. As individuals, many are in debt. A higher percentage of our cars are gas guzzlers, and we live in homes that are palaces by global standards. Not knowing what else to do, many executives are outsourcing service and production work to other countries in their endless search for quick fixes and short-term profits. Some of these events, taken to the next level, will converge to form a ”perfect storm” of economic impacts that could make each of the next twenty years resemble the meltdown of 2000.

Even though some 1200 to 1500 A-shares of Berkshire Hathaway will be sold over the next two years, I’m standing by my investment and adding to it when (and if) it goes ”on sale.”

This is a link to the news release (pdf file) from Berkshire Hathaway concerning the death of Susan T. Buffett. As a long-time holder of shares in Berkshire Hathaway, I offer condolences to the Buffett family.

This day also marked the loss of a neighbor to my mom. They had been friends for forty-six years. To that family, we also extend our sympathies and prayers.

The Scene: One of the power places for breakfast in the Memphis area. I was waiting for my breakfast meeting guest to arrive. Two women were departing, and as they passed, I heard the following brief exchange…

First Woman: You told me the bridge would increase my concentration in other areas.

Second Woman: Isn’t it amazing?

First Woman: I’m playing the best golf of my life, and the only thing that’s different is the bridge.

What were they discussing?

Both of these women happened to be carrying study guides to the game of Bridge. Warren Buffett has said similar things in past writing or speaking at the annual meeting for Berkshire Hathaway. He and Bill Gates play, rather frequently, and often together. They play online.

Understanding income and what to do with it is a factor that separates the haves from the have-nots. Understanding how net worth grows also separates those who prosper from those who constantly scrape by. This holds for individuals and businesses.

Few topics get as much coverage as money. The investing shelves are full of resources at every library and bookstore. The list of truly useful material is much shorter.

In February of this year, Michael J. Mauboussin left Credit Suisse First Boston and joined Legg Mason. One of his first essays since joining them is available as a pdf file. It is truly outstanding. For more articles you might take a look at the Cap@Columbia web site. Dig a bit and you’ll find some outstanding tools for improving your thought process concerning investments.