text:
Warren Buffett
"Chains of habit are too light to be felt
until they are too heavy to be broken."
Warren Edward Buffett (pronounced /ˈbʌfɨt/; born August 30, 1930) is an American investor, industrialist and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett",[4][5] he is the primary shareholder, chairman and CEO of Berkshire Hathaway.[6]
"No matter how great the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant."
He is consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008[7] and is the third wealthiest person in the world as of 2011.[8]
Buffett is called the "Oracle of Omaha"[9] or the "Sage of Omaha"[10] and is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth.[11] Buffett is also a notable philanthropist, having pledged to give away 99 percent[12] of his fortune to philanthropic causes, primarily via the Gates Foundation. He also serves as a member of the board of trustees at Grinnell College.[13]
Early life
Buffett was born in 1930 in Omaha, Nebraska, the second of three children and only son of businessman and politician Howard Buffett,[14] and his wife Leila (née Stahl). Buffett began his education at Rose Hill Elementary School in Omaha. In 1942, his father was elected to the first of four terms in the United States Congress, and after moving with his family to Washington, D.C., Warren finished elementary school, attended Alice Deal Junior High School, and graduated from Woodrow Wilson High School in 1947, where his senior yearbook picture reads: "likes math; a future stock broker."[15]
Even as a child, Buffett displayed an interest in making and saving money. He went door to door selling chewing gum, Coca-Cola, or weekly magazines. For a while, he worked in his grandfather's grocery store. While still in high school he was successful in making money by delivering newspapers, selling golfballs and stamps, and detailing cars, among other means. Filing his first income tax return in 1944, Buffett took a $35 deduction for the use of his bicycle and watch on his paper route.[16] In 1945, in his sophomore year of high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in the local barber shop. Within months, they owned several machines in different barber shops.
Buffett's interest in the stock market and investing also dated to his childhood, to the days he spent in the customers' lounge of a regional stock brokerage near the office of his father's own brokerage company. On a trip to New York City at the age of ten, he made a point to visit the New York Stock Exchange. At the age of 11, he bought three shares of Cities Service Preferred for himself, and three for his sister.[17][18] While in high school he invested in a business owned by his father and bought a farm worked by a tenant farmer. By the time he finished college, Buffett had accumulated more than $90,000 in savings measured in 2009 dollars.
Benjamin Graham (1894–1976)
Phil Fisher (1907–2004)
Buffett entered college as a freshmen in 1947 at the Wharton Business School of the University of Pennsylvania and studied there for two years from 1947 to 1949. In the year 1950, when he entered his junior year, he transferred to the University of Nebraska–Lincoln where at the age of nineteen, he graduated with a degree of Bachelor of Science in Business Administration. After the completion of his undergraduate studies, Buffett enrolled at Columbia Business School after learning that Benjamin Graham (author of "The Intelligent Investor" – one of his favorite books on investing) and David Dodd, two well-known securities analysts, taught there. He received a M.S. in Economics from Columbia Business School in 1951. Buffett also attended the New York Institute of Finance. In Buffett's own words:
|I'm 15 percent Fisher and 85 percent Benjamin Graham.[19]The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.[20]
Warren Buffett was employed from 1951–54 at Buffett-Falk & Co., Omaha as an investment salesman, from 1954–1956 at Graham-Newman Corp., New York as a securities analyst, from 1956–1969 at Buffett Partnership, Ltd., Omaha as a general partner and from 1970 – Present at Berkshire Hathaway Inc, Omaha as its Chairman, CEO.
In 1950, at the age of 20, Buffett had made and saved $9,800. In April 1952, Buffett discovered Graham was on the board of GEICO insurance. Taking a train to Washington, D.C. on a Saturday, he knocked on the door of GEICO's headquarters until a janitor allowed him in. There he met Lorimer Davidson, Geico's Vice President, and the two discussed the insurance business for hours. Davidson would eventually become Buffett's life-long friend and a lasting influence[21] and later recall that he found Buffett to be an "extraordinary man" after only fifteen minutes. Buffett graduated from Columbia and wanted to work on Wall Street, however, both his father and Ben Graham urged him not to. He offered to work for Graham for free, but Graham refused.[22]
Buffett returned to Omaha and worked as a stockbroker while taking a Dale Carnegie public speaking course.[citation needed] Using what he learned, he felt confident enough to teach an "Investment Principles" night class at the University of Nebraska-Omaha. The average age of his students was more than twice his own. During this time he also purchased a Sinclair Texaco gas station as a side investment. However, this did not turn out to be a successful business venture.
In 1952[23] Buffett married Susan Thompson at Dundee Presbyterian Church and the next year they had their first child, Susan Alice Buffett. In 1954, Buffett accepted a job at Benjamin Graham's partnership. His starting salary was $12,000 a year (approximately $97,000 adjusted to 2008 dollars). There he worked closely with Walter Schloss. Graham was a tough man to work for. He was adamant that stocks provide a wide margin of safety after weighting the trade-off between their price and their intrinsic value. The argument made sense to Buffett but he questioned whether the criteria were too stringent and caused the company to miss out on big winners that had more qualitative values.[citation needed] That same year the Buffetts had their second child, Howard Graham Buffett. In 1956, Benjamin Graham retired and closed his partnership. At this time Buffett's personal savings were over $174,000 ($1.2 million inflation adjusted to 2009 dollars) and he started Buffett Partnership Ltd., an investment partnership in Omaha.
Buffett's home in Omaha
In 1957, Buffett had three partnerships operating the entire year. He purchased a five-bedroom stucco house in Omaha, where he still lives, for $31,500. In 1958 the Buffett's third child, Peter Andrew Buffett, was born. Buffett operated five partnerships the entire year. In 1959, the company grew to six partnerships operating the entire year and Buffett was introduced to Charlie Munger. By 1960, Buffett had seven partnerships operating: Buffett Associates, Buffett Fund, Dacee, Emdee, Glenoff, Mo-Buff and Underwood. He asked one of his partners, a doctor, to find ten other doctors willing to invest $10,000 each in his partnership. Eventually eleven agreed, and Buffett pooled their money with a mere $100 original investment of his own. In 1961, Buffett revealed that Sanborn Map Company accounted for 35% of the partnership's assets. He explained that in 1958 Sanborn stock sold at only $45 per share when the value of the Sanborn investment portfolio was $65 per share. This meant that buyers valued Sanborn stock at "minus $20″ per share and were unwilling to pay more than 70 cents on the dollar for an investment portfolio with a map business thrown in for nothing. This earned him a spot on the board of Sanborn.
As a millionaire
In 1962, Buffett became a millionaire, because of his partnerships, which in January 1962 had an excess of $7,178,500, of which over $1,025,000 belonged to Buffett. Buffett merged all partnerships into one partnership. Buffett invested in and eventually took control of a textile manufacturing firm, Berkshire Hathaway. Buffett's partnerships began purchasing shares at $7.60 per share. In 1965, when Buffett's partnerships began purchasing Berkshire aggressively, they paid $14.86 per share while the company had working capital of $19 per share. This did not include the value of fixed assets (factory and equipment). Buffett took control of Berkshire Hathaway at the board meeting and named a new president, Ken Chace, to run the company. In 1966, Buffett closed the partnership to new money. Buffett wrote in his letter: "… unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL."
In a second letter, Buffett announced his first investment in a private business — Hochschild, Kohn and Co, a privately owned Baltimore department store. In 1967, Berkshire paid out its first and only dividend of 10 cents. In 1969, following his most successful year, Buffett liquidated the partnership and transferred their assets to his partners. Among the assets paid out were shares of Berkshire Hathaway. In 1970, as chairman of Berkshire Hathaway, Buffett began writing his now-famous annual letters to shareholders. However, he lived solely on his salary of $50,000 per year, and his outside investment income. In 1979, Berkshire began the year trading at $775 per share, and ended at $1,310. Buffett's net worth reached $620 million, placing him on the Forbes 400 for the first time.
In 1973, Berkshire began to acquire stock in the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the company and its flagship newspaper, and became a member of its board of directors. In 1974, the SEC opened a formal investigation into Warren Buffett and Berkshire's acquisition of WESCO, due to possible conflict of interest. No charges were brought. In 1977, Berkshire indirectly purchased the Buffalo Evening News for $32.5 million. Antitrust charges started, instigated by its rival, the Buffalo Courier-Express. Both papers lost money, until the Courier-Express folded in 1982.
In 1979, Berkshire began to acquire stock in ABC. Capital Cities announced $3.5 billion purchase of ABC on March 18, 1985 surprised the media industry, as ABC was four times bigger than Capital Cities at the time. Berkshire Hathaway chairman Warren Buffett helped finance the deal in return for a 25% stake in the combined company.[24] The newly merged company, known as Capital Cities/ABC (or CapCities/ABC), was forced to sell off some stations due to FCC ownership rules. Also, the two companies owned several radio stations in the same markets.[25]
In 1987, Berkshire Hathaway purchased a 12% stake in Salomon Inc., making it the largest shareholder and Buffett the director. In 1990, a scandal involving John Gutfreund (former CEO of Salomon Brothers) surfaced. A rogue trader, Paul Mozer, was submitting bids in excess of what was allowed by the Treasury rules. When this was discovered and brought to the attention of Gutfreund, he did not immediately suspend the rogue trader. Gutfreund left the company in August 1991.[26] Buffett became Chairman of Salomon until the crisis passed; on September 4, 1991, he testified before Congress.[27] In 1988, Buffett began buying stock in Coca-Cola Company, eventually purchasing up to 7% of the company for $1.02 billion. It would turn out to be one of Berkshire's most lucrative investments, and one which it still holds.
As a billionaire
Buffett became a billionaire on paper when Berkshire Hathaway began selling class A shares on May 29, 1990, when the market closed at $7,175 a share.[28] In 1998, he acquired General Re (Gen Re), (in a rare move, for stock). In 2002, Buffett became involved with Maurice R. Greenberg at AIG, with General Re providing reinsurance. On March 15, 2005, AIG's board forced Greenberg to resign from his post as Chairman and CEO under the shadow of criticism from Eliot Spitzer, former attorney general of the state of New York. On February 9, 2006, AIG and the New York State Attorney General's office agreed to a settlement in which AIG would pay a fine of $1.6 billion.[29] In 2010, the federal government settled with Berkshire Hathaway for $92 million in return for the firm avoiding prosecution in an AIG fraud scheme, and undergoing 'corporate governance concessions'.[30]
In 2002, Buffett entered in $11 billion worth of forward contracts to deliver U.S. dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion. In 2006, Buffett announced in June that he gradually would give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006. The largest contribution would go to the Bill and Melinda Gates Foundation.[31] In 2007, in a letter to shareholders, Buffett announced that he was looking for a younger successor, or perhaps successors, to run his investment business.[32] Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett.
Late 2000s recession
Buffett ran into criticism[33] during the subprime crisis of 2007–2008, part of the late 2000s recession, that he had allocated capital too early resulting in suboptimal deals. "Buy American. I am." he wrote for an opinion piece published recently in the New York Times.[34] Buffett has called the 2007—present downturn in the financial sector "poetic justice".[35] Buffett's Berkshire Hathaway suffered a 77% drop in earnings during Q3 2008 and several of his recent deals appear to be running into large mark-to-market losses.[36]
Berkshire Hathaway acquired 10% perpetual preferred stock of Goldman Sachs.[37] Some of Buffett's Index put options (European exercise at expiry only) that he wrote (sold) are currently running around $6.73 billion mark-to-market losses.[38] The scale of the potential loss prompted the SEC to demand that Berkshire produce, "a more robust disclosure" of factors used to value the contracts.[38] Buffett also helped Dow Chemical pay for its $18.8 billion takeover of Rohm & Haas. He thus became the single largest shareholder in the enlarged group with his Berkshire Hathaway, which provided $3 billion, underlining his instrumental role during the current crisis in debt and equity markets.[39]
In 2008, Buffett became the richest man in the world dethroning Bill Gates, worth $62 billion according to Forbes,[40] and $58 billion according to Yahoo.[41] Bill Gates had been number one on the Forbes list for 13 consecutive years.[42] In 2009, Bill Gates regained number one of the list according to Forbes magazine, with Buffett second. Their values have dropped to $40 billion and $37 billion respectively, Buffett having (according to Forbes) lost $25 billion in 12 months during 2008/2009.[43]
In October 2008, the media reported that Warren Buffett had agreed to buy General Electric (GE) preferred stock.[44] The operation included extra special incentives: he received an option to buy 3 billion GE at $22.25 in the next five years, and also received a 10% dividend (callable within three years). In February 2009, Buffett sold some of the Procter & Gamble Co, and Johnson & Johnson shares from his portfolio.[45]
In addition to suggestions of mistiming, questions have been raised as to the wisdom in keeping some of Berkshire's major holdings, including The Coca-Cola Company (NYSE:KO) which in 1998 peaked at $86. Buffett discussed the difficulties of knowing when to sell in the company's 2004 annual report:
That may seem easy to do when one looks through an always-clean, rear-view mirror. Unfortunately, however, it's the windshield through which investors must peer, and that glass is invariably fogged.[46]
In March 2009, Buffett stated in a cable television interview that the economy had "fallen off a cliff… Not only has the economy slowed down a lot, but people have really changed their habits like I haven't seen". Additionally, Buffett fears we may revisit a 1970s level of inflation, which led to a painful stagflation that lasted many years.[47][48]
In 2009, Warren Buffett invested $2.6 billion as a part of Swiss Re's raising equity capital.[49][50] Berkshire Hathaway already owns a 3% stake, with rights to own more than 20%.[51] In 2009, Warren Buffett acquired Burlington Northern Santa Fe Corp. for $34 billion in cash and stock. Alice Schroeder, author of Snowball, stated that a reason for the purchase was to diversify Berkshire Hathaway from the financial industry.[52] Measured by market capitalization in the Financial Times Global 500 Berkshire Hathaway as of June 2009 was the eighteenth largest corporation on earth.[53]
In 2009, Buffett divested his failed investment in ConocoPhillips, saying to his Berkshire investors,
I bought a large amount of ConocoPhillips stock when oil and gas prices were near their peak. I in no way anticipated the dramatic fall in energy prices that occurred in the last half of the year. I still believe the odds are good that oil sells far higher in the future than the current $40–$50 price. But so far I have been dead wrong. Even if prices should rise, moreover, the terrible timing of my purchase has cost Berkshire several billion dollars.[54]
The merger with the Burlington Northern Santa Fe Railway (BNSF) closed upon BNSF shareholder approval in 1Q2010. This deal is valued at approximately $34 billion and reflects an increase of a previously existing stake of about 22%.
In June 2010, Buffett defended the credit rating agencies for their role in the US financial crisis, claiming that:
Very, very few people could appreciate the bubble. That's the nature of bubbles – they're mass delusions.[55]
On March 18, 2011, Goldman Sachs acquired Federal Reserve approval to buy back Berkshire's preferred stock in Goldman. Buffet has been reluctant to give up the stock which averages $1.4 million in dividend a day,[56] stating:[57]
I'm going to be the Osama bin Laden of capitalism. I'm on my way to an unknown destination in Asia where I'm going to look for a cave. If the U.S. Armed forces can't find Osama bin Laden in 10 years, let Goldman Sachs try to find me.[58]
Personal life
Buffett married Susan Buffett (née Thompson) in 1952. They had three children, Susie, Howard and Peter. The couple began living separately in 1977, although they remained married until her death in July 2004. Their daughter, Susie, lives in Omaha and does charitable work through the Susan A. Buffett Foundation and is a national board member of Girls, Inc. In 2006, on his seventy-sixth birthday, Warren married his never-married longtime-companion, Astrid Menks, who was then 60-years-old. She had lived with him since his wife's departure to San Francisco in 1977.[59] It was Susan Buffett who arranged for the two to meet before she left Omaha to pursue her singing career. All three were close and Christmas cards to friends were signed "Warren, Susie and Astrid".[60] Susan Buffett briefly discussed this relationship in an interview on the Charlie Rose Show shortly before her death, in a rare glimpse into Buffett's personal life.[61]
Warren Buffett disowned his son Peter's adopted daughter, Nicole, in 2006 after she participated in the Jamie Johnson documentary, The One Percent. Although his first wife had referred to Nicole as one of her "adored grandchildren",[62] Buffett wrote her a letter stating, "I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted you as a niece or a cousin." He signed the letter "Warren."[63][64][65]
His 2006 annual salary was about $100,000, which is small compared to senior executive remuneration in comparable companies.[66] In 2007 and 2008, he earned a total compensation of $175,000, which included a base salary of just $100,000.[67][68] He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000 (although he also owns a $4 million house in Laguna Beach, California).[69] In 1989 after having spent nearly 6.7 million dollars of Berkshire's funds on a private jet, Buffett sheepishly named it "The Indefensible". This act was a break from his past condemnation of extravagant purchases by other CEOs and his history of using more public transportation.[70]
He remains an avid player of bridge, which he learned from Sharon Osberg, and plays with her and Bill Gates.[71] He spends twelve hours a week playing the game.[72] In 2006, he sponsored a bridge match for the Buffett Cup. Modeled on the Ryder Cup in golf, held immediately before it, and in the same city, a team of twelve bridge players from the United States took on twelve Europeans in the event. He is a dedicated, lifelong follower of Nebraska football, and attends as many games as his schedule permits. He supported the hire of Bo Pelini following the 2007 season stating, "It was getting kind of desperate around here".[73] He watched the 2009 game against Oklahoma from the Nebraska sideline after being named an honorary assistant coach.[74]
Warren Buffett worked with Christopher Webber on an animated series with chief Andy Heyward, of DiC Entertainment, and then A Squared Entertainment. The series features Buffett and Munger, and teaches children healthy financial habits for life.[75][76] Buffett was raised Presbyterian but has since described himself as agnostic[77] In December 2006 it was reported that Buffett does not carry a cell phone, does not have a computer at his desk, and drives his own automobile.[78] a Cadillac DTS.[79] Buffett wears tailor-made suits from the Chinese label Trands; earlier he wore Ermenegildo Zegna.[80]
Buffett's DNA report revealed that his paternal ancestors hail from northern Scandinavia, while his maternal ancestors most likely have roots in Iberia or Estonia.[81]
In 1999, Buffett was named the top money manager of the Twentieth Century in a survey by the Carson Group, ahead of Peter Lynch and John Templeton.[82] In 2007, he was listed among Time's 100 Most Influential People in the world.[83] In 2011, President Barack Obama awarded him the Presidential Medal of Freedom.[84] Most recently, Buffett, along with Bill Gates, was named the most influential global thinker in Foreign Policy's 2010 report.[85]
Buffett and President Obama at the Oval Office, July 14, 2010
In addition to other political contributions over the years, Buffett has formally endorsed and made campaign contributions to Barack Obama's presidential campaign. On July 2, 2008, Buffett attended a $28,500 per plate fundraiser for Obama's campaign in Chicago hosted by Obama's National Finance Chair, Penny Pritzker and her husband, as well as Obama advisor Valerie Jarrett.[86] Buffett backed Obama for president, and intimated that John McCain's views on social justice were so far from his own that McCain would need a "lobotomy" for Buffett to change his endorsement.[87] During the second 2008 U.S. presidential debate, candidates John McCain and Barack Obama, after being asked first by presidential debate mediator Tom Brokaw, both mentioned Buffett as a possible future Secretary of the Treasury.[88] Later, in the third and final presidential debate, Obama mentioned Buffett as a potential economic advisor.[89] Buffett was also finance advisor to California Republican Governor Arnold Schwarzenegger during his 2003 election campaign.[90]
Warren Buffett's writings include his annual reports and various articles. Buffett is recognized by communicators[91] as a great story-teller, as evidenced by his annual letters to shareholders. He warned about the pernicious effects of inflation:[92]
The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays 100 percent income tax on her interest income during a period of zero inflation, or pays no income taxes during years of 5 percent inflation.—Buffett, Fortune (1977)
In his article The Superinvestors of Graham-and-Doddsville, Buffett rebutted the academic Efficient-market hypothesis, that beating the S&P 500 was "pure chance", by highlighting the results achieved by a number of students of the Graham and Dodd value investing school of thought. In addition to himself, Buffett named Walter J. Schloss, Tom Knapp, Ed Anderson (Tweedy, Brown Inc.), Bill Ruane (Sequoia Fund, Inc.), Charles Munger (Buffett's own business partner at Berkshire), Rick Guerin (Pacific Partners, Ltd.), and Stan Perlmeter (Perlmeter Investments).[93] In his November 1999 Fortune article, he warned of investors' unrealistic expectations:[94]
Let me summarize what I've been saying about the stock market: I think it's very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they've performed in the past 17. If I had to pick the most probable return, from appreciation and dividends combined, that investors in aggregate—repeat, aggregate—would earn in a world of constant interest rates, 2% inflation, and those ever hurtful frictional costs, it would be 6%!—Buffett, Fortune (1999)
In 2008 he was ranked by Forbes as the richest person in the world with an estimated net worth of approximately US$62 billion.[95] In 2009, after donating billions of dollars to charity, Buffett was ranked as the second richest man in the United States with a net worth of US$37 billion[96][97] with only Bill Gates ranked higher than Buffett. His net worth is up to $47 billion in the past 12 months.[98]
The following quotation from 1988 highlights Warren Buffett's thoughts on his wealth and why he long planned to re-allocate it:
|I don't have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It's like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don't do that though. I don't use very many of those claim checks. There's nothing material I want very much. And I'm going to give virtually all of those claim checks to charity when my wife and I die. (Lowe 1997:165–166)
From a NY Times article: "I don't believe in dynastic wealth", Warren Buffett said, calling those who grow up in wealthy circumstances "members of the lucky sperm club".[99] Buffett has written several times of his belief that, in a market economy, the rich earn outsized rewards for their talents:
|A market economy creates some lopsided payoffs to participants. The right endowment of vocal chords, anatomical structure, physical strength, or mental powers can produce enormous piles of claim checks (stocks, bonds, and other forms of capital) on future national output. Proper selection of ancestors similarly can result in lifetime supplies of such tickets upon birth. If zero real investment returns diverted a bit greater portion of the national output from such stockholders to equally worthy and hardworking citizens lacking jackpot-producing talents, it would seem unlikely to pose such an insult to an equitable world as to risk Divine Intervention.[100]
His children will not inherit a significant proportion of his wealth. This is consistent with statements he has made in the past indicating his opposition to the transfer of great fortunes from one generation to the next.[101] Buffett once commented, "I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing".[102]
In June 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation.[103] He pledged about the equivalent of 10 million Berkshire Hathaway Class B shares to the Bill & Melinda Gates Foundation (worth approximately US$30.7 billion as of June 23, 2006),[104] making it the largest charitable donation in history, and Buffett one of the leaders of philanthrocapitalism.[105] The foundation will receive 5% of the total donation on an annualised basis each July, beginning in 2006. (Significantly, however, the pledge is conditional upon the foundation's giving away each year, beginning in 2009, an amount that is at least equal to the value of the entire previous year's gift from Buffett, in addition to 5% of the foundation's net assets.) Buffett also will join the board of directors of the Gates Foundation, although he does not plan to be actively involved in the foundation's investments.[106][107]
This is a significant shift from previous statements Buffett has made, having stated that most of his fortune would pass to his Buffett Foundation.[108] The bulk of the estate of his wife, valued at $2.6 billion, went to that foundation when she died in 2004.[109] He also pledged $50-million to the Nuclear Threat Initiative, in Washington, where he has served as an adviser since 2002.[110]
In 2006, he auctioned his 2001 Lincoln Town Car[111] on eBay to raise money for Girls, Inc.[112] In 2007, he auctioned a luncheon with himself that raised a final bid of $650,100 for a charity.[113] On June 27, 2008, Zhao Danyang, a general manager at Pure Heart China Growth Investment Fund, won the 2008 5-day online "Power Lunch with Warren Buffett" charity auction with a bid of $2,110,100. Auction proceeds benefit the San Francisco Glide Foundation.[114][115] The following year, executives from Toronto-based Salida Capital paid US$1.68 million to dine with Buffett.[116]
In a letter to Fortune Magazine's website in 2010 Buffett remarked:
|"My luck was accentuated by my living in a market system that sometimes produces distorted results, though overall it serves our country well… I've worked in an economy that rewards someone who saves the lives of others on a battlefield with a medal, rewards a great teacher with thank-you notes from parents, but rewards those who can detect the mispricing of securities with sums reaching into the billions. In short, fate's distribution of long straws is wildly capricious.". (Buffett Says 'Capricious' Economy Requires Charity (Update1) by Hugh Son, Bloomberg, June 16, 2010 16:17 EDT)
This statement was made as part of a joint proposal with Bill Gates to encourage other wealthy individuals to pool some of their fortunes for charitable purposes.
Bill Gates's wife Melinda urged people to learn a lesson from the philanthropic efforts of the family that sold its home and gave away half of its value, as detailed in The Power of Half.[117][118] On December 9, 2010, Buffett, Bill Gates, and Mark Zuckerberg (Facebook's CEO), signed a promise they called the "Gates-Buffett Giving Pledge", in which they promised to donate to charity at least half of their wealth over time, and invited others among the wealthy to donate 50% or more of their wealth to charity.[119][120]
Public positions
Buffett's speeches are known for mixing business discussions with humor. Each year, Buffett presides over Berkshire Hathaway's annual shareholder meeting in the Qwest Center in Omaha, Nebraska, an event drawing over 20,000 visitors from both United States and abroad, giving it the nickname "Woodstock of Capitalism".[121] Berkshire's annual reports and letters to shareholders, prepared by Buffett, frequently receive coverage by the financial media. Buffett's writings are known for containing quotations from sources as ranging between the Bible and Mae West,[122] as well as advice in a Midwestern folk style, and numerous jokes.
Buffett and tobacco
During the RJR Nabisco, Inc. hostile takeover fight in 1987, Buffett was quoted as telling John Gutfreund:[123]
I'll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It's addictive. And there's fantastic brand loyalty.—Buffett, quoted in Barbarians at the Gate: The Fall of RJR Nabisco
Speaking at Berkshire Hathaway Inc.'s 1994 annual meeting, Buffett said investments in tobacco are:[124]
fraught with questions that relate to societal attitudes and those of the present administration. I would not like to have a significant percentage of my net worth invested in tobacco businesses. The economy of the business may be fine, but that doesn't mean it has a bright future.—Buffett, Berkshire Hathaway annual meeting (1994)
Buffett and coal
In 2007, Buffett's PacifiCorp, a subsidiary of his MidAmerican Energy Company, canceled six proposed coal-fired power plants. These included Utah's Intermountain Power Project Unit 3, Jim Bridger Unit 5, and four proposed plants previously included in PacifiCorp's Integrated Resource Plan. The cancellations came in the wake of pressure from regulators and citizen groups, including a petition drive organized by Salt Lake City commercial real estate broker Alexander Lofft and directed at Buffett personally. The 1,600 petitioners, who described themselves in a letter to Buffett as "a collection of citizens, business owners and managers, service professionals, public servants, and organization representatives … your friends and new customers here in Utah," explained that, in their view, any further expansion of coal generation in Utah would "compromise our health, obscure our viewsheds, shrink and contaminate our watersheds, and thin out our most beloved snow pack," concluding that "our attractiveness as a place to live and work is also threatened, and so is our economic competitiveness as a major metro area and a state, compromising our recent gains in income and property values".[125]
Klamath river
American Indian tribes and salmon fishermen sought to win support from Warren Buffett for a proposal to remove four hydroelectric dams from the Klamath River. He had David Sokol respond that the FERC would decide the question.[126][127]
Trade deficit
Buffett views the United States' expanding trade deficit as a trend that will devalue the US dollar and US assets. He believes that the US dollar will lose value in the long run, as a result of putting a larger portion of ownership of US assets in the hands of foreigners. In his letter to shareholders in March 2005, Warren Buffett predicted that in another ten years' time the net ownership of the U.S. by outsiders would amount to $11 trillion.
Americans … would chafe at the idea of perpetually paying tribute to their creditors and owners abroad. A country that is now aspiring to an 'ownership society' will not find happiness in – and I'll use hyperbole here for emphasis – a 'sharecropping society'.
Author Ann Pettifor has adopted the image in her writings and has stated: "He is right. And so the thing we must fear most now, is not just the collapse of banks and investment funds, or of the international financial architecture, but of a 'sharecropper society, angry at its downfall".[128]
Dollar and gold
The trade deficit induced Buffett to enter the foreign currency market for the first time in 2002. However, he substantially reduced his stake in 2005 as changing interest rates increased the costs of holding currency contracts. Buffett continues to be bearish on the dollar, and says he is looking to acquire companies which derive a substantial portion of their revenues from outside the United States. Buffett emphasized the non-productive aspect of a gold standard for the USD in 1998 at Harvard:
It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.
In 1977 Buffett was also quoted as saying about stocks, gold, farmland, and inflation:
Stocks are probably still the best of all the poor alternatives in an era of inflation – at least they are if you buy in at appropriate prices.[129]
Buffett stated that he only paid 19% of his income for 2006 ($48.1 million) in total federal taxes (due to their being from dividends & capital gains), while his employees paid 33% of theirs, despite making much less money.[130] "How can this be fair?" Buffet asked, regarding how little he pays in taxes compared to his employees. "How can this be right?" He also added:
- "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."[131][132]
Buffett favors the inheritance tax, saying that repealing it would be like "choosing the 2020 Olympic team by picking the eldest sons of the gold-medal winners in the 2000 Olympics".[133] In 2007, Buffett testified before the Senate and urged them to preserve the estate tax so as to avoid a plutocracy.[134] Some critics have argued that Buffett (through Berkshire Hathaway) has a personal interest in the continuation of the estate tax, since Berkshire Hathaway has benefited from the estate tax in past business dealings and had developed and marketed insurance policies to protect policy holders against future estate tax payments.[135] Buffett believes government should not be in the business of gambling, or legalizing casinos, calling it a tax on ignorance.[136]
Expensing of stock options
He has been a strong proponent of stock option expensing on the Income Statement. At the 2004 annual meeting, he lambasted a bill before the United States Congress that would consider only some company-issued stock options compensation as an expense, likening the bill to one that was almost passed by the Indiana House of Representatives to change the value of Pi from 3.14159 to 3.2 through legislative fiat.[137]
When a company gives something of value to its employees in return for their services, it is clearly a compensation expense. And if expenses don't belong in the earnings statement, where in the world do they belong?[138]
Investing in China
Buffett invested in PetroChina Company Limited and in a rare move, posted a commentary[139] on Berkshire Hathaway's website stating why he would not divest from the company despite calls from some activists to do so, due to its connection with the Sudanese civil war that caused Harvard to divest from the company in 2005. He did, however, sell this stake soon afterwards, sparing him the billions of dollars he would have lost had he held on to the company in the midst of the steep drop in oil prices beginning in the summer of 2008.
In October 2008, Buffett invested in new energy automobile business by paying $230 million for 10% of BYD Company (SEHK: 1211), which runs a subsidiary of electric automobile manufacturer BYD Auto. In less than one year, the investment has reaped him over 500% return of profit.[140]
Books about Buffett
Numerous books have been written about Warren Buffett and his investment strategies. In October 2008, USA Today reported that there were at least 47 books in print with Buffett's name in the title. The article quoted the CEO of Borders Books, George Jones, as saying that the only other living persons named in as many book titles were U.S. presidents, major world political figures, and the Dalai Lama.[141] Buffett said that his own personal favorite is a collection of his essays called The Essays of Warren Buffett,[142] which he described as "a coherent rearrangement of ideas from my annual report letters" as edited by Larry Cunningham.[141]
Some best-selling, or otherwise notable, books about Buffett:
- Roger Lowenstein, Buffett, Making of an American Capitalist
- Robert Hagstrom, The Warren Buffett Way.[141][143]
- Alice Schroeder, The Snowball: Warren Buffett and the Business of Life.[144] (Written with Buffett's cooperation.)[145]
- Mary Buffett and David Clark, Buffettology[146] and four subsequent books. (Combined sales of more than 1.5 million copies.)[141]
- Janet Lowe, Warren Buffett Speaks: Wit and Wisdom from the World's Greatest Investor.[147]
- John Train, The Midas Touch: The Strategies That Have Made Warren Buffett 'America's Preeminent Investor'.[148]
- Andrew Kilpatrick, Of Permanent Value: The Story of Warren Buffett.[149] (The longest of the books about Buffett, with 330 chapters, 1,874 pages and 1,400 photos, weighing 10.2 pounds.)[141]
- Robert P. Miles (2004). Warren Buffett wealth: principles and practical methods used by the world's greatest investor. John Wiley and Sons. ISBN 9780471465119.
- John P. Reese, "The Guru Investor: How to Beat the Market Using History's Best Investment Strategies".[150] (Includes step-by-step stock-picking method based on Buffett's approach)
- Janet M. Tavakoli, Dear Mr. Buffett: what an investor learns 1,269 miles from Wall Street, John Wiley and Sons, 2008, ISBN 9780470406786[151]
- The Essays of Warren Buffett : Lessons for Corporate America, Warren Buffett and Lawrence A. Cunningham, The Cunningham Group; revised edition (April 11, 2001), ISBN 978-0966446111
- The Essays of Warren Buffett: Lessons for Corporate America, Second Edition, Warren E. Buffett and Lawrence A. Cunningham, The Cunningham Group; 2nd edition (April 14, 2008), ISBN 978-0966446128
See also
- Forbes list of billionaires
- ^ "Warren E Buffett, CEO Compensation". Forbes. March 30, 2006. Retrieved February 23, 2009.
- ^ "Forbes – Warren Buffett". Forbes. Retrieved May 23, 2010.
- ^ Bailey, Jeff; Dash, Eric (September 1, 2006). "How Does Warren Buffett Get Married? Frugally, It Turns Out". The New York Times. Retrieved May 20, 2008.
- ^ Stevenson, Tom (March 4, 2008). "Ten top investment tips from Warren Buffett". The Daily Telegraph (UK). Retrieved March 6, 2009.
- ^ Wearden, Graeme (October 17, 2008). "Warren Buffett: I'm buying US shares". The Guardian (UK). Retrieved March 6, 2009.
- ^ "The Greatest Investors: Warren Buffett". Investopedia.com. Retrieved March 6, 2009.
- ^ "The World's Billionaires". Forbes. March 11, 2009. Retrieved November 28, 2010.
- ^ Luisa Kroll, Matthew Miller (March 10, 2010). "The World's Billionaires". Forbes. Retrieved March 11, 2010.
- ^ Markels, Alex (July 29, 2007). "How to Make Money the Buffett Way". U.S. News & World Report.
- ^ Sullivan, Aline (December 20, 1997). "Buffett, the Sage of Omaha, Makes Value Strategy Seem Simple: Secrets of a High Plains Investor". International Herald Tribune.[dead link]
- ^ Gogoi, Pallavi (May 8, 2007). "What Warren Buffett might buy". MSNBC. Retrieved May 9, 2007.
- ^ Buffett, Warren (June 16, 2010). "My philanthropic pledge". CNN.
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- ^ Blair, Elliot (January 29, 2004). "Nebraska family clashes over love, money and death". USA Today. Retrieved May 23, 2010.
- ^ "Warren E. Buffett". Nuclear Threat Initiative. Retrieved May 20, 2008.
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- ^ "Special Feature, April 29, 1999: Berkshire and Buffett". Fool.com. Retrieved November 28, 2010.
- ^ Robert P. Miles (2004). Warren Buffett wealth: principles and practical methods used by the world's greatest investor. John Wiley and Sons. p. 26. ISBN 9780471465119.
- ^ Hagstrom 2005, p. 27
- ^ Hagstrom 2005, p. 14 Warren Buffett is now the richest man in the world with $65 billion. GE Raises $15 billion; Buffett Gets Preferred Stake (Update3)
- ^ Lowenstein, Roger. Buffett: The Making of an American Capitalist. p. 43. ISBN 0385484917.
- ^ "Lecture at the University of Florida School of Business – Transcript (PDF document)". Intelligent Investor. October 15, 1998. Retrieved May 7, 2010.
- ^ Schudel, Matt (July 30, 2004). "Susan T. Buffett, 72, Dies; Wife of Billionaire Investor". Washington Post: p. B06. Retrieved July 13, 2009.
- ^ Kleinfield, N.R. "ABC is being sold for $3.5 billion; 1st network sale". The New York Times, March 19, 1985.
- ^ "FCC approval of Capcities/ABC deal likely". Broadcasting, March 25, 1985.
- ^ ""Inaction Can be as Dangerous as Bad Action", Aly Gonenne, Class of 2004, Duke Leadership Development Initiative". Mbaa.fuqua.duke.edu. Retrieved May 23, 2010.
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- ^ GenRe Reaches Deal With Justice Department in AIG Case By AMIR EFRATI , 2010 Jan 21, Wall Street Journal
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- ^ a b Jonathan Stempel (November 24, 2008). "Buffett to disclose more on derivatives". Reuters. Retrieved November 27, 2008.
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- ^ Warren Buffett to buy $3bn of General Electric preferred stock, The Guardian (October 1, 2008)
- ^ "Berkshire Hathaway unloads J&J and P&G". Financial Express. February 17, 2009. Retrieved February 23, 2009.
- ^ Schroeder, Alice The Snowball: Warren Buffett and the Business of Life ISBN 0553805096 Bantam Sept 2008
- ^ Josh Funk, "Buffett says nation will face higher unemployment", AP on Seattle Times, March 9, 2009. Retrieved November 28, 2010.
- ^ "Buffett: The economy has 'fallen off a cliff'", MSN.com, March 9, 2009 . Retrieved April 3, 2009.
- ^ Lionel Laurent (02.05.09). "Buffett Sinks Billions Into Swiss Re". Forbes.
- ^ DAVID JOLLY (February 5, 2009). "Swiss Re Gets $2.6 billion From Berkshire Hathaway". The New York Times.
- ^ Haig Simonian, Francesco Guerrera (February 5, 2009). "Swiss Re turns to Buffett for new funding". Financial Times.
- ^ "Alice Schroeder on Buffett and BNI; Which Company Will Berkshire Hathaway Acquire Next?". GuruFocus.com. Retrieved May 23, 2010.
- ^ FTGlobal500.pdf June 2009,FT.com
- ^ "Warren Buffett's Multi-Billion Mistake with ConocoPhillips (COP)". Gurufocus.com. Retrieved May 23, 2010.
- ^ "Credit rating agencies not to blame for crisis says Buffett". Insideireland.ie. June 3, 2010. Retrieved November 28, 2010.
- ^ Quick, Becky (Mar 20, 2011). "Berkshire Will Not Exercise Goldman Sachs Warrants Immediately". CNBC. Retrieved May 4, 2011.
- ^ Harper, Christine (March 18, 2011). "Goldman Sachs to Pay $5.65 billion to Redeem Buffett's Stake". Business Week. Retrieved May 4, 2011.
- ^ Quick, Becky (March 20, 2011). "Where Will Warren Buffett Hide From Goldman Sachs?". CNBC. Retrieved May 4, 2011.
- ^ CBS News article Wedding Bells For Warren Buffett published August 31, 2006
- ^ Lowenstein, Roger. Buffett: The Making of an American Capitalist. Random House. ISBN 0812979273.
- ^ "Susan Buffett in Her Own Words: Conversations with Charlie Rose". Bookworm Omaha. Archived from the original on December 23, 2007. Retrieved May 20, 2008.
- ^ The Rich Man's Michael Moore Wall Street Journal, Robert Frank. February 23, 2008
- ^ Goodman, Leah McGrath (December 2008). "The Billionaire's Black Sheep". Marie Claire. Retrieved March 19, 2010.
- ^ Nichols, Michelle (February 21, 2008). "Documentary on wealth gap divides Buffett family". Reuters. Retrieved March 19, 2010.
- ^ Schroeder, Alice (2009). The Snowball: Warren Buffett and the Business of Life. Random House. pp. 656–657. ISBN 978-0553384611. Excerpt available at Google Books.
- ^ Smith, Rich (June 29, 2005). "Stupid CEO Tricks". Motley Fool. Retrieved May 20, 2008.
- ^ 2007 CEO Compensation for Warren E. Buffett , Equilar
- ^ 2008 CEO Compensation for Warren E. Buffett, Equilar
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- ^ Moore, Martha T. (December 19, 2005). "Billionaires bank on bridge to trump poker". USA Today. Retrieved May 23, 2010.
- ^ Blackstone, John (February 17, 2008). "Bringing Back Bridge". CBS News. Retrieved May 20, 2008.
- ^ "The Varsity Zone Talks Football with Warren Buffett". YouTube. Retrieved May 23, 2010.
- ^ Sherman, Mitch (November 7, 2009). "From the sidelines: Can some of these guys suit up?". Omaha World-Herald. Retrieved January 19, 2009.
- ^ Warren Buffett, Martha Stewart, Gisele Bündchen, and Kosmos Featuring Carl Sagan Headline New Slate of Purpose-Driven Entertainment for Children.
- ^ "CNBC TRANSCRIPT: Warren Buffett's 'Secret Millionaire's Club' Live Interview on Squawk Box". CNBC.
- ^ Wired article Faces of the New Atheism: The Scribe published November 2006. Retrieved November 10, 2009.
- ^ "How Warren Buffett made his billions". Rediff.com. December 26, 2006. Retrieved May 20, 2008.
- ^ Taylor III, Alex (June 4, 2006). "Buffett backs GM – and buys a Caddy". CNN. Retrieved May 20, 2008.
- ^ Kapner, Suzanne (September 23, 2009). "Chinese suitmaker woos Warren Buffett – Sep. 23, 2009″. CNN. Retrieved May 23, 2010.
- ^ Boyle, Matthew (May 28, 2007). "The Buffett mystery". CNN. Retrieved May 20, 2008.
- ^ "Warren Buffett and Peter Lynch Voted Top Money Managers of the Century". Business Wire. November 22, 1999. Retrieved May 20, 2008.
- ^ Cramer, James J. (April 19, 2003). "Warren Buffett". TIME. Retrieved May 20, 2008.
- ^ Julianna Goldman (February 15, 2011). "Obama Honors Buffett, George H.W. Bush With Medal of Freedom". Retrieved February 15, 2011.
- ^ "The FP Top 100 Global Thinkers". Foreign Policy. 2010-11. Retrieved November 28, 2010.
- ^ Michael Luo and Christopher Drew (July 3, 2008). "Obama Picks Up Fund-Raising Pace". Washington Post. Retrieved September 24, 2008.
- ^ ""Squawk Box" Transcript: Becky Quick Sits Down with Billionaire Investor Warren Buffett". CNBC. Retrieved September 12, 2008.
- ^ "Transcript of second McCain, Obama debate". CNN. October 10, 2008. Retrieved October 10, 2008.
- ^ "Obama appoints Buffett as economic adviser". November 7, 2008.[dead link]
- ^ USA Today: Schwarzenegger taps Buffett as finance advisor Aug 14, 2003
- ^ Lou Hoffman, The Hoffman Agency. "Startup lessons learned from Warren Buffett." April 13, 2010. Retrieved, April 16, 2010.
- ^ How Inflation Swindles the Equity Investor, Warren Buffett, FORTUNE, May 1977
- ^ "Official Buffett Biography to Hit Shelves". New York Times. August 12, 2008. Retrieved August 15, 2008.
- ^ Warren Buffett; Carol Loomis (November 22, 1999). "Mr. Buffett on the Stock Market". Fortune Magazine.
- ^ "The World's Billionaires". Forbes. Retrieved May 23, 2010.
- ^ Boyle, Christina (October 1, 2009). "Bill Gates, Warren Buffett, Christy Walton top 2009's 'Forbes 400: Richest Americans' list". Daily News (New York). Retrieved May 23, 2010.
- ^ "Warren Buffett signs over $30.7B to Bill and Melinda Gates Foundation". USA Today. June 26, 2006. Retrieved May 23, 2010.
- ^ "The World's Billionaires: No.3 Warren Buffett", Forbes, 03.10.10
- ^ NY Times article should go here
- ^ "How Inflation Swindles the Equity Investor", Warren E. Buffett, Fortune May 1977 #
- ^ "A biography of Warren Buffett" (review of The Snowball), The Economist, Oct. 16, 2008.
- ^ An Exclusive Hour with Warren Buffett and Bill and Melinda Gates. Charlie Rose.
- ^ Loomis, Carol J. (June 25, 2006). "Warren Buffett gives away his fortune". Fortune. Retrieved May 20, 2008.
- ^ "Gates: Buffett gift may help cure worst diseases". MSNBC. June 26, 2006. Retrieved May 20, 2008.
- ^ "The birth of philanthrocapitalism". The Economist. February 23, 2006. Retrieved February 23, 2009.
- ^ TIMOTHY L. O'BRIEN and STEPHANIE SAUL (June 26, 2006). "Buffett to Give Bulk of His Fortune to Gates Charity". The New York Times.
- ^ Yuki Noguchi (June 26, 2006). "Gates Foundation to Get Bulk of Buffett's Fortune". The Washington Post: p. A01.
- ^ Carol J. Loomis (June 25, 2006). "A conversation with Warren Buffett". Fortune Magazine.
- ^ "Most of Susan Buffett Estate to Go to Foundation". The Foundation Center. August 11, 2004. Retrieved May 20, 2008.
- ^ ""America's Most-Generous Donors, Rank: 1 Warren E. Buffett", Chronicle of Philanthropy". Philanthropy.com. February 22, 2007. Retrieved May 23, 2010.
- ^ Chapnick, Nate. "Warren Buffett". Forbes. Retrieved May 20, 2008.
- ^ "girls-inc". eBay. Retrieved May 20, 2008.
- ^ Lindsay Goldwert (July 1, 2007). "Lunch With Warren Buffett? $650,100, Charity Auction Winner Bids Big Money For Steak Lunch With Billionaire Buffett". CBS News. Retrieved February 23, 2009.
- ^ Zuill, Lilla (June 28, 2008). "uk.reuters.com, Warren Buffett lunch sells for record $2.11 mln". Uk.reuters.com. Retrieved February 23, 2009.
- ^ "cnbc.com, Warren Buffett Charity Lunch Auction Ends with High Bid of $2,110,100″. Cnbc.com. Retrieved February 23, 2009.
- ^ Funk, Josh (June 6, 2010). "Buffett hopes lunch auction again draws big bids". Associated Press. Retrieved June 7, 2010.[dead link]
- ^ Bina Abraham (October 1, 2010). "They half it in them". Gulf News. Retrieved March 17, 2011.
- ^ Robyn Griggs Lawrence (February 22, 2011). "A Rich Gift: Homemade Jelly for Bill and Melinda Gates". Mother Earth News. Retrieved March 10, 2011.
- ^ "US billionaires pledge 50% of their wealth to charity". BBC. August 4, 2010. Retrieved September 6, 2010.
- ^ Moss, Rosabeth (December 14, 2010). "Four Strategic Generosity Lessons". Business Week. Retrieved March 9, 2011.
- ^ "Warren Buffett's Letters to Shareholders". Berkshire Hathaway. Archived from the original on March 22, 2007. Retrieved May 20, 2008.
- ^ "Chairman's Letter—1993″. Berkshire Hathaway. Retrieved May 20, 2008.
- ^ Burrough, Bryan; Helyar, John (1990). Barbarians at the Gate: The Fall of RJR Nabisco. New York: Harper & Row. ISBN 0-060-16172-8.
- ^ ""Warren Buffett Cools on His Attraction to Tobacco Business", Jenell Wallace, Bloomberg news, Apr/25/94, Legacy Tobacco Documents Library, University of California San Diego Library". Legacy.library.ucsf.edu. Retrieved May 23, 2010.
- ^ "The Education of Warren Buffett: Why did the guru cancel six coal plants?" Ted Nace, Gristmill, April 15, 2008
- ^ Josh Funk (5/3/2008). "Buffett again rebuffs advocates who want Klamath dams out". USA Today.
- ^ Bacher, Dan (May 1, 2009). "Indybay.org". Indybay.org. Retrieved May 23, 2010.
- ^ "A Sharecropper's Society?". The Washington Post. August 7, 2005. Retrieved February 23, 2009.
- ^ Buffett, Warren (1977–05). "How Inflation Swindles the Equity Investor". Fortune
- ^ "Warren Buffet". Forbes: 24, 42–3. November 26, 2007.
- ^ Ben Stein, "In Class Warfare, Guess Which Class Is Winning", New York Times, Nov. 26, 2006
- ^ Dave Zweifel, "Plain Talk: There's Class War, and Rich Are Winning", The Cap Times, Oct. 6, 2010
- ^ "Rich Americans back inheritance tax". BBC. February 14, 2001. Retrieved May 20, 2008.
- ^ Jim Snyder (November 15, 2007). "Buffett tells Senate Finance panel 'dynastic' wealth on the rise in U.S.". The Hill (The Hill (newspaper)).
- ^ Berlau, John (August 23, 2004). "Buffetted. The Sage of Omaha loves the estate tax – as well he might". National Review (FindArticles).[dead link]
- ^ Ackman, Dan (October 11, 2004). "America, The Casino Nation". Forbes. Retrieved May 20, 2008.
- ^ "Warren Buffett, "Fuzzy Math And Stock Options ", The Washington Post, July 6, 2004, Page A19″. The Washington Post. July 6, 2004. Retrieved May 23, 2010.
- ^ Buffett, Warren E. (July 24, 2002). "Warren E. Buffett, "Who Really Cooks the Books?", The New York Times, July 24, 2002″. New York Times. Retrieved May 23, 2010.
- ^ "Shareholder Proposal Regarding Berkshire's Investment In PetroChina" (PDF). Berkshire Hathaway. Retrieved May 20, 2008.
- ^ "Warren Buffet's 500% Return from BYD: The Show Just Begun?". ChinaStakes. Retrieved September 16, 2009.
- ^ a b c d e Del Jones, "Book titles like to play the Warren Buffett name game," USA Today, October 22, 2008.
- ^ Buffett, Warren; Cunningham, Lawrence. The Essays of Warren Buffett: Lessons for Corporate America, Second Edition. The Cunningham Group. ISBN 978-0-9664461-2-8.
- ^ Hagstrom, Robert G.; Miller, Bill R.; Fisher, Ken (2005). The Warren Buffett Way. Hoboken, N.J.: John Wiley. ISBN 0-471-74367-4.
- ^ Schroeder, Alice. The Snowball: Warren Buffett and the Business of Life. Bantam Dell Pub Group 2008.. ISBN 978-0-553-80509-3.
- ^ Janet Maslin, "Books of The Times: The Richest Man and How He Grew (and Grew His Company, Too)," New York Times, September 28, 2008.
- ^ Buffett, Mary; Clark, David. Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett The World's Most Famous Investor. Scribner. ISBN 978-0-684-84821-1.
- ^ Lowe, Janet. Warren Buffett Speaks: Wit and Wisdom from the World's Greatest Investor. Wiley. ISBN 978-0-470-15262-1.
- ^ Train, John (1987). The midas touch: the strategies that have made Warren Buffett America's pre-eminent investor. New York: Harper & Row. ISBN 978-0-06-015643-5.
- ^ Kilpatrick, Andrew. Of Permanent Value: The Story of Warren Buffett/2008 Cosmic Edition/2 volumes. Andy Kilpatrick Publishing Empire (AKPE). ISBN 978-1-57864-455-1.
- ^ Reese, John P.; Jack Forehand (2009). The Guru Investor: How to Beat the Market Using History's Best Investment Strategies. Wiley. ISBN 978-0-470-37709-3.
- ^ Tavakoli, Janet (January 9, 2009). Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street. Wiley. p. 304. ISBN 978-0470406786.
External links
- Berkshire Hathaway official website
- Latest Holdings In Berkshire Hathaway Portfolio, Dynamically Updated
- Buffett Partnership Letters
- Berkshire Hathaway SEC 13F Filings
- Appearances on C-SPAN
- Warren Buffett on Charlie Rose
- Warren Buffett collected news and commentary at The New York Times
- Warren Buffett collected news and commentary at The Guardian
- Works by or about Warren Buffett in libraries (WorldCat catalog)
- Stempel, Jonathan (February 12, 2008). "FACTBOX: Warren Buffett at a glance". Reuters.
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text: Kevin Reid wrote: > On Nov 29, 2006, at 6:41, Martin Scheffler wrote: > >> Hmm, I think there is no way to add an unescaped double quote to a >> mediawiki page. >> All quotes in the E code are escaped, so creating a HTML template >> for the pragma-line would not be enough. >> Maybe the easiest way would be to add a HTML-unquote feature to the >> testing tool. > > If the tool doesn't do so already, then it's broken. (I believe it > does.) > > The only programs that should make a distinction between >..."...< > and >..."...< in HTML are editors and other tools trying to > preserve original non-semantically-significant structure. I think Kevin's correct. As an experiment, I edited the pragma line at the top of <http://www2.deltamobile.com/wiki/Walnut/Ordinary_Programming> to: But first, we need to declare what version of E we're using here. <pre> ? pragma.syntax("0.9") </pre> This produced the following html: <p>But first, we need to declare what version of E we're using here. </p> <pre> ? pragma.syntax("0.9") </pre> which is correct. Other quote symbols within existing E code, as automatically converted from Walnut/html to Walnut/wiki, all seem correct. -- Text by me above is hereby placed in the public domain Cheers, --MarkM

subset: commoncrawl


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Get Involved
Sarah - "Fighting Every Day for a Tomorrow"
I was diagnosed with stage IIB breast cancer at the age of 26. This occurred in the summer of 2007, while we were getting ready to celebrate my son's 2nd birthday. The diagnosis was tough but I felt I could deal with anything. My older brother was diagnosed with acute leukemia six months prior and I thought that if he could fight cancer then so could I. I underwent chemotherapy, bilateral mastectomies, radiation and reconstructive surgery. It was not an easy time, but once this process was over, I started feeling like I was "normal" and I resumed my college education.
In the spring of 2009, I started to feel pain in my right shoulder (same side as my cancer). After being misdiagnosed, I sought help with a different oncologist and I was diagnosed with a recurrence of breast cancer in my lymph nodes. I underwent more chemotherapy while continuing on with my studies. During routine scans in the spring of 2010, I found that my cancer had spread to my right lung. Now, this was a low blow to my family and me. We just couldn't seem to catch a break. I started on a different regimen and I underwent a new procedure called "Cyberknife". It is a very different take on radiation. The procedure seemed successful but the cancer has still been progressing in other areas of my body.
Today I am still fighting my cancer; despite the challenges, I am continuing to move forward in my life. I graduated from Pittsburg State University in May of 2011, with a Bachelor of Science in Communications. One weekend later, the devastating EF-5 tornado took the life of my grandfather and my husband's aunt. A friend looked at me and said, "I have survived the tornado and you have survived cancer." Have I really survived cancer?
My story isn't just a story about heartache and pain, or the sense of unfairness cancer has brought to my life, but really the story of being able to overcome obstacles. My life has never been "easy", but then who guaranteed that? I have many blessings: a healthy 6-year-old son, a wonderful marriage of 9 years and an amazing support group of family and friends. I have received a few awards for my volunteer and advocacy work. I am honored by this and determined to continue this type of work. I have managed a support group with the help of other "pink sisters" and the HOPE 4 You Breast Cancer Foundation. I have been able to substitute teach in two different school districts. I'm doing my best to advocate and to spread the word everyday about what breast cancer does to women and men. I consider myself a "metavivor" - I am a wife, a mother, a daughter, a sister, and a friend who is continually fighting every day for a tomorrow.
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I was going to post about my reaction to Paul Deen's announcement that she has Type-2 diabetes, but instead opted to do something positive and antithetical to the dangerous style of cooking that has made her rich and, very possibly, sick.
The bread in the video is a variation of something that I've been making weekly since about 1999. It "starts" with wet starter that I keep in the refrigerator until I'm ready to bake. I don't keep close track of the age of my starters, but I think this one is about two years old. The starter is usually a mixture of whole rye and wheat flour, wheat berries, flax seeds and, of course, well water. Sometimes I rebuild it with more of all of the solid components. Other times, I'll use just one or something completely different like durum wheat flour. This week I rebuilt it with rye flour and wheat berries.
After an initial feeding, I let the starter ferment for about 8 hours before feeding it again, and then letting it go until the yeast and bacteria start making a ruckus. This later stage can take anywhere from 12 to 24 hours depending on a host of variables too numerous to mention.
Once the starter is cranking, I'll mix in the flour and water that will form the bulk of the finished bread, let it "autolyse" (absorb the water) for 30 minutes or so before adding the salt. I usually knead it with the dough hook in my mixer then let it proof for anywhere from 24 to 48 hours. I stop the proofing when I think the "nose" or smell is where I want it to be and, of course, when I think the yeast and bacteria have produced sufficient gas to give the dough a good rise in the oven (oven spring).
Here is a "crumb" shot of the finished bread. Notice the whorl in the lower portion of the loaf? That is a clear indication that the crust hardened before the dough had finished rising in the oven. I'm not sure why this happened but I suspect it was caused by one or more of the following factors.
- The water that I added to the oven dried evaporated before the bottom of the bread finished expanding
- The dough was too cold before I put it in the oven
- The oven was not hot enough
If the second instance the nethermost interior of dough that is too cold will not heat before the crust hardens. So any expansion of gases that occurs, happens too late to cause much inflation of the gluten cells.
Finally, if the oven is not hot enough (especially the floor of the oven) the crust will harden before the interior is heated sufficiently to cause expansion of the gluten cells.


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CBD Secretariat Requests Views on REDD+ Safeguards
24 January 2011: The Secretariat of the Convention on Biological Diversity (CBD) has requested submission of views with regard to relevant safeguards in reducing emissions from deforestation and forest degradation in developing countries, and the role of conservation, sustainable management of forests and enhancement of carbon stocks (REDD+).
In addition, the CBD Secretariat has requested submission of possible indicators to assess the contribution of REDD+ to achieving the CBD objectives, as well as views on potential mechanisms to monitor impacts from REDD+ and other ecosystem-based approaches for climate change mitigation measures on biodiversity. The CBD Secretariat has prepared a questionnaire to be used in the submissions. The deadline for submissions is 30 April 2011. Views submitted will be compiled by the Secretariat to be used by parties in relevant fora. [The Notification]


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Moutain Biking into Zanskar
The ancient Buddhist kingdom of Zanskar is hidden deep in the western reaches of the great Himala... Read more
Welcome to Wild East Adventure
Wild East Adventure, based in Ladakh in the northern Indian Himalaya, has been organizing adventure activities in various parts of the Himalayas since 1996. We specialize in climbing, trekking and rafting and will tailor adventures and experiences around your interests, be they fauna and flora, religion and spirituality, environmental conservation, physical challenge or culture. Our team of friendly and knowledgeable guides look forward to being a part of your Himalayan experience.
Our Environmental Efforts
Wild East Adventure is particularly aware of preserving Ladakh's fragile environment and cultural heritage and put great effort into minimising the impact of trekking. > Learn More
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running around umass amherst getting drunk and go out partying from one party to the next. and wake up not remembering much.
dude i went amhersting last weekend, i dont remember a thing, but it was awsome.
di kyles89 13 luglio 2010
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Polymethyl Methacrylate - PMMA - is widely used in various applications for its many advantageous properties. Perhaps the most well-known of these properties is light transmission. Typical PMMA grades allow 92% of light to pass through it, which is more than glass or other plastics. This outstanding clarity enables the use of PMMA in many different optical and related applications.
Because it is inherently stable to UV-light, PMMA is used for many outdoor applications, in which it maintains its original colour and finishes for many years.
PMMA also has excellent scratch resistance and is able to be processed to a very high gloss finish. These properties, combined with PMMA's dimensional stability, enables its use in many different applications where lasting beautiful appearances are important, such as on furniture or kitchen or bath walls or cabinet facades.
PMMA can be further modified by incorporating different additives. These modifications are typically performed to improve specific properties of the polymer, usually targeted toward specific applications. Examples of properties that can be adjusted in this way are impact resistance, chemical resistance, flame retardancy, light diffusion, UV light filtering, or optical effects.


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Soccer Falls at 2012 C-USA Champ Colorado College
COLORADO SPRINGS -- The Ball State soccer team suffered a 2-0 loss Friday at Colorado College in the first contest of its weekend trip out West.
A goal by Kaeli Vandersluis in the 67th minute broke a scoreless tie and proved to be the game-winner for the Tigers at Stewart Field.
Ball State lost for just the second time to fall to 4-2-0. Colorado College, which shared the Conference USA championship last year, improved to 3-3-0 with the win.
The Cardinals will stay in the Colorado Springs area to play Sunday at Air Force. That game is scheduled to start at Noon MT (2 p.m. ET) with live stats and video available at goairforcefalcons.com.
In Friday's contest, Colorado College managed to pile up 25 shots against a Ball State team that entered the day allowing barely eight shots per game.
Ball State freshman goalkeeper Brooke Dennis held strong in the net, keeping the Tigers off the scoreboard until the 66:30 mark when Vandersluis scored off consecutive passes from Katie Uyenishi and Chanisse Hendrix.
It was the first goal allowed this season by Dennis, who held opponents scoreless for the first 246 minutes of her college career. The reigning Mid-American Conference Defensive Player of the Week finished the game with four saves.
Offensively, the Cardinals were credited with just one shot in the game, an early second-half attempt from senior Michelle Blok. Colorado College goalkeeper Kate Scheele stopped that shot for her only save of the game on the way to the shutout.
The Tigers went on to add a second goal in the final minute off the foot of Sarah Schweiss. Shaina Riciputi was credited with an assist on the play.
Friday's game was the first of five in a row away from home for Ball State. The Cardinals will not play at the Briner Sports Complex again until Oct. 4 against Kent State.


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Showing 1-2 of 2 Nature Resorts
Dickerson's Lake Florida Resort
With a stay at Dickerson's Lake Florida Resort, nature is accessible in number of ways. Take advantage by going hiking, biking, bird-watching, or wall climbing at the Prairie Wood Environmental Learning Center, or check out the 2,500-acre Sibley State Park. Reconnecting with nature has never been this easy! ... more
- Wifi
- Restaurant Onsite
- Pets Allowed
- Property Size 13 units
- Conference Facility
- Kids Allowed
- Nearby City Spicer
- Nearby Water Lake Florida
- Open Dates Jun 1 to Nov 16
- Beach
- Family
- Golf
- Nature
- Fishing
- Romantic
- Ecotourism
- Lake
- Historical
- Honeymoon
- Cabins, Cottages, and Chalets
- Holiday
Hike, bike, or in-line skate on the nearby beautiful Glacial Lakes State Trail, 12 miles of paved trail from Willmar to New London, with optional paved trails and designated bike lanes to Sibley State Park and surrounding areas.... more
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Share your proud mummy moment in our first day of term photo gallery! Whether it's their first day at a new school, they are starting for the first time or they're just going into a new class we'd love to see your photos.
Back to school guide
We would not recommend putting your child's full name and/or school next to your photograph Read more about internet safety and your children.


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In "New England Under Glass," Tovah Martin took everything we love about the New England landscape and captured it in a series of lovely terrariums.
While searching for terrarium accessories, we came across the work of Dave Camber of Creative Laser Design in Lyndonville, Vermont. Dave is an engineer, but his passion is model trains; in his spare time, he designs, cuts, and builds miniature basswood replicas of real buildings in Vermont's Northeast Kingdom and parts of New Hampshire. Many of his models are drawn from Lyndonville, including the Dairy Association building, now home to the Bag Balm salve company, as well as the old Long Barn, once located at Valley Farm in Lyndon Center (it burned down in the late 1960s). He's even designed replicas of three barns that still stand on the farm where his grandmother was raised (one of them appears in our "Farm" terrarium, photo opposite).
Dave and his wife, Sue, sell the models as DIY kits, and we spent two happy evenings assembling and painting ours (one of them appears in the "Sugar Shack" terrarium, opposite). Because the models are made of basswood, we recommend using them in drier terrariums, or laying a barrier between them and any wet matter. Use a waterproof wood glue, seal (before painting) with a polycrylic finish, and paint both inside and outside.
To see more of Dave's creations (and to place an order), visit creativelaserdesign.com or call 802-626-9254.


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News Release
|<< Back
|American Capital Agency Corp. Reports $(1.57) Comprehensive Loss Per Common Share And $28.93 Net Book Value Per Common Share
BETHESDA, Md.,
"Fixed-rate agency MBS prices declined considerably more than both U.S. Treasury securities and interest rate swaps during the first quarter, as market participants began to price in an early end to the Federal Reserve's third round of quantitative easing ("QE3") amid stronger economic data," commented
"Importantly, prepayments on our portfolio remained low and we continue to achieve very favorable financing levels on our dollar roll positions," added Mr. Kain. "Additionally, recent declines in repurchase agreement rates should benefit our total funding cost. As such, despite what we believe to be temporary weakness in MBS valuations, our assets continue to perform as expected from a cash flow perspective. Furthermore, we view the cheapening of specified mortgages as a good opportunity to add some excellent assets at attractive valuations."
"Given the magnitude of the Federal Reserve's involvement in the mortgage market and the shifting sentiment on the strength of the economy, the volatility we experienced during the quarter is not surprising," said
TBA dollar roll transactions are a form of off-balance sheet financing of agency MBS. The price differential between agency MBS purchased for a forward settlement date through a TBA dollar roll transaction and the price of agency MBS for settlement in the current month is referred to as the "price drop". The price drop is the economic equivalent of the net interest carry (interest income less implied financing cost), also referred to as "dollar roll income," on the agency MBS earned during the roll period. Given the attractive terms available in the dollar roll market, the Company maintained an average net forward TBA position of
The Company accounts for TBA dollar roll positions as derivative instruments and recognizes dollar roll income in other income (loss), net on the Company's financial statements. As of March 31, 2013, the Company's net TBA mortgage portfolio had a fair value and cost basis of approximately
As of March 31, 2013, the Company's agency securities were comprised of
As of March 31, 2013, 78% of the Company's fixed-rate securities, or 57% inclusive of net TBA mortgage positions, were comprised of securities backed by lower loan balance mortgages and loans originated under the
The Company amortizes or accretes premiums and discounts associated with purchases of agency securities into interest income using the effective yield method over the estimated life of such securities, incorporating both actual repayments to date and projected CPRs over the remaining life of the security. The weighted average cost basis of the Company's investment portfolio was 105.4% of par value as of March 31, 2013; therefore, faster actual or projected prepayments can have a meaningful negative impact, while slower actual or projected prepayments can have a meaningful positive impact, on the Company's asset yields.
The amortization of premiums, net of any accretion of discounts, on the Company's investment portfolio for the first quarter was
The Company's average cost of funds (derived from the cost of repurchase agreements, other debt and interest rate swaps) increased 9 bps to 1.28% for the first quarter, from 1.19% for the fourth quarter. The Company's average cost of funds as of March 31, 2013 increased 10 bps to 1.32% from 1.22% as of December 31, 2012. The increase in the Company's average cost of funds was due to higher average swap costs.
The Company's average net interest rate spread for the first quarter was 1.52%, a decrease of 11 bps from the fourth quarter of 1.63%. Including estimated TBA dollar roll income, the Company's average net interest rate spread for the first quarter was 1.87%, an increase from 1.84% during the fourth quarter. The Company's average net spread income for the first quarter includes 16 bps of "catch-up" premium amortization benefit due to changes in projected CPR estimates, compared to 19 bps of "catch-up" premium amortization benefit during the fourth quarter. As of March 31, 2013, the Company's average net interest rate spread was 1.43%, or 1.71% inclusive of net TBA dollar roll positions, compared to 1.39%, or 1.61% inclusive of net TBA dollar roll positions as of December 31, 2012.
The weighted average original maturity of the Company's repurchase agreements was 183 days as of March 31, 2013, largely unchanged from 181 days as of December 31, 2012. As of March 31, 2013, the Company's repurchase agreements had a weighted average remaining days to maturity of 118 days, unchanged from December 31, 2012.
The Company's interest rate swap positions as of March 31, 2013 totaled
The Company utilizes interest rate swaptions to mitigate exposure to larger changes in interest rates. During the quarter, the Company added
The Company also utilizes short positions in U.S. Treasury securities to mitigate exposure to increases in interest rates. As of March 31, 2013, the Company had
Other derivative instruments and securities generally represent instruments that are used in addition to interest rate swaps (such as swaptions, treasury securities and treasury futures contracts) to supplement the Company's interest rate risk management strategies.
Estimated taxable income for the quarter was negatively impacted by net realized losses of approximately
On March 11, 2013, the Board of Directors of the Company declared a first quarter dividend on its 8.000% Series A Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") of
The Company had approximately
*Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized.
NM = Not meaningful. Prior to the fourth quarter of 2012, the Company's net TBA position primarily consisted of short TBAs used for hedging purposes.
1. The Company voluntarily discontinued hedge accounting under GAAP for interest rate swaps as of
2. Table includes non-GAAP financial measures. Refer to "Use of Non-GAAP Financial Information" for additional discussion of non-GAAP financial measures.
3. Other interest rate swap periodic costs represent periodic interest costs on the Company's interest rate swap portfolio in excess of amounts reclassified from accumulated OCI into interest expense. Other interest rate swap periodic costs does not include termination fees or mark-to-market adjustments associated with interest rate swaps.
4. Estimated cumulative undistributed REIT taxable income as of period end is net of common and preferred dividends declared during the period, without adjustment for future quarterly dividends not yet declared on the Company's Series A Preferred Stock. Amount divided by total common shares outstanding as of each period end.
5. Agency securities par value excludes the underlying unamortized principal balance ("UPB") of the Company's interest-only securities.
6. Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter.
7. Net book value per common share calculated as total stockholders' equity, less the Company's Series A Preferred Stock liquidation preference of
8. Leverage during the period was calculated by dividing the daily weighted average repurchase agreements and other debt outstanding, less repurchase agreements for treasury securities, for the period by the average stockholders' equity for the period.
9. Leverage at period end was calculated by dividing the sum of the amount outstanding under repurchase agreements, net receivable / payable for unsettled agency securities and other debt by total stockholders' equity at period end.
10. Weighted average coupon for the period was calculated by dividing the total coupon (or cash) interest income on agency securities by average agency securities held at par.
11. Weighted average asset yield for the period was calculated by dividing the total interest income on agency securities (coupon interest less amortization of premiums and discounts) by the average amortized cost of agency securities held.
12. Cost of funds includes repurchase agreements, other debt and interest rate swaps, but excludes swap termination fees and costs associated with other supplemental hedges such as swaptions and short treasury or TBA positions. Weighted average cost of funds for the period was calculated by dividing the total cost of funds by the average repurchase agreements and other debt outstanding, less repurchase agreements for treasury securities, for the period.
13. Net interest rate spread for the period was calculated by subtracting the average cost of funds from the average asset yield.
14. Estimated TBA dollar roll income is net of short TBAs used for hedging purposes. Dollar roll income excludes the impact of other supplemental hedges, and is recognized in gain (loss) on derivative instruments and other securities, net.
15. Cost of funds as of period end includes repurchase agreements and other debt outstanding, plus the impact of interest rate swaps in effect as of each period end and forward starting swaps becoming effective, net of swaps expiring, within three months of each period end, but excludes costs associated with other supplemental hedges such as swaptions and short treasury or TBA positions.
16. Net comprehensive income (loss) return on average common equity for the period was calculated by dividing comprehensive (loss) income (attributable) available to common shareholders by average common equity.
17. Economic (loss) return on common equity represents the sum of the change in net asset value per common share and dividends declared on common stock during the period over the beginning net asset value per common share.
A slide presentation will accompany the call and will be available at www.AGNC.com. Select the Q1 2013 Earnings Presentation link to download and print the presentation in advance of the Stockholder Call.
An archived audio of the shareholder call combined with the slide presentation will be made available on the AGNC website after the call on May 3, 2013. In addition, there will be a phone recording available from
For further information, please contact Investor Relations at (301) 968-9300 or firstname.lastname@example.com.
Net spread income consists of adjusted net interest income, less total operating expenses. Adjusted net interest income is interest income less interest expense (or "GAAP net interest income"), less other periodic interest rate swap interest costs reported in other income (loss), net.
Estimated taxable income is pre-tax income calculated in accordance with the requirements of the Internal Revenue Code rather than GAAP. Estimated taxable income differs from GAAP income because of both temporary and permanent differences in income and expense recognition. Examples include (i) unrealized gains and losses associated with interest rate swaps and other derivatives and securities marked-to-market in current income for GAAP purposes, but excluded from estimated taxable income until realized or settled, (ii) temporary differences related to the amortization of premiums paid on investments and (iii) timing differences in the recognition of certain realized gains and losses. Furthermore, estimated taxable income can include certain information that is subject to potential adjustments up to the time of filing of the appropriate tax returns, which occurs after the end of the calendar year of the Company.
The Company believes that these non-GAAP financial measures provide information useful to investors because net spread income is a financial metric used by management and investors and estimated taxable income is directly related to the amount of dividends the Company is required to distribute in order to maintain its REIT tax qualification status. The Company also believes that providing investors with net spread income, estimated taxable income and certain financial metrics derived based on such estimated taxable income, in addition to the related GAAP measures, gives investors greater transparency to the information used by management in its financial and operational decision-making. However, because net spread income and estimated taxable income are an incomplete measure of the Company's financial performance and involve differences from net income computed in accordance with GAAP, net spread income and estimated taxable income should be considered as supplementary to, and not as a substitute for, the Company's net income computed in accordance with GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of net spread income and estimated taxable income may not be comparable to other similarly-titled measures of other companies.


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Ring in the New Year with a Financial Plan
On December 13, 2013 By WIMilitaryAdmin
Make a New Year's Resolution to achieve Financial Fitness. The following tips from author, Steven Smith, are good suggestions for building, achieving, and maintaining financial health and fitness next year:
Resolve to spend less than you make. The oldest financial advice is still the best — spend less than you take in. This will keep […]Continue Reading →
Great American Smokeout
On November 20, 2013 By WIMilitaryAdmin
Thursday, November 21st is the "Great American Smokeout." Smoking is not glamorous. It can be downright dangerous and can lead to a premature death. Quitting for just one day is an important step towards adopting a healthier life and reducing cancer risk. Take a few minutes out of your day Thursday to make a plan […]Continue Reading →
TRICARE Meets Requirements for Essential Care
On November 13, 2013 By WIMilitaryAdmin
TRICARE and the Affordable Care Act
TRICARE health coverage plans with the exception of TRICARE Plus meet the minimum requirements for essential care under the Affordable Health Care Act that goes into effect on 1 January 2014. The premiums and cost-shares for TRICARE plans are generally lower than many of the plans available through the […]Continue Reading →
Wisconsin Army National Guard Strong Bonds Weekend
On October 22, 2013 By WIMilitaryAdmin
The Wisconsin Army National Guard will be hosting will be hosting a Strong Bonds Weekend, 15 – 17 November, in the Wisconsin Dells Area. This weekend is open to Wisconsin Army National Guard Soldiers and family members. Childcare will be provided for children ages zero to 6. Military Youth ages 7 – 17 may participate […]Continue Reading →
Wisconsin Philharmonic Salute to Veterans
On October 17, 2013 By WIMilitaryAdmin
The Wisconsin Philharmonic will host the Salute to Veterans of the Korean and Cold War on November 10th. 3:00 p.m., at the Carroll University, Shattuck Auditorium. The featured soprano is Kelli Cramer and the show will be narrated by Henry Fogel. Veterans in the audience will be entered in a drawing to win an Honor […]Continue Reading →
Defense Department Launches Website for Military Children
On January 19, 2012 By Web Admin
From a National Center for Telehealth and Technology News Release JOINT BASE LEWIS-McCHORD, Wash., Jan. 18, 2012 – The Defense Department launched a new website today for children experiencing the challenges of military deployments. The highly interactive website, www.MilitaryKidsConnect.org, was created by psychologists at DOD's National Center for Telehealth […]Continue Reading →
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MODERN is currently at the standing-room-only Intercoiffure breakout class being led by Luis Alvarez for Aquage, sponsored by Beauty Systems Group. Alvarez is demonstrating his photo shoot techniques and philosophies, along with special occasion styling how-tos, literally bringing a shoot to life on stage. Members are loving the expert insights, practical tips and the beautiful images he is sharing throughout the presentation--including the Aura collection spread recently featured in the special BSG/MODERN SALON Holiday issue.
MODERN also attended the Intercoiffure Gala Awards last night, where awards were presented to members Scott Buchanan for the Cheena O'Seara award, Adam Broderick for the Adolf Biecker Award, Darlene Gage for the first President's Award from Intercoiffure President Lois Christie, and Jo Blackwell—Preston for the Intercoiffure worldwide "Personality of the Year" award.
Also, check out these late night presentation photos from Intercoiffure last night—there was even a special award given to Oribe, presented by Sarah Jessica Parker.


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St. Charles Parish Councilman Larry Cochran hopes to settle a debate on how much information the Planning and Zoning Commission has to provide the council when making recommendations on rezoning applications.
Council members Paul Hogan and Carolyn Schexnaydre say parish law requires the seven members of the Planning and Zoning Commission to explain why they voted the way they did.
But commissioners and a majority of Parish Council members say the verbatim transcript of each commission meeting is sufficient to comply with the law that requires the commission to submit a "full report" about its deliberations on applications for rezoning or special-use permits.
Hogan made an unsuccessful attempt to persuade the council on Monday to ask the state attorney general's office for a legal opinion on the matter.
Hogan argues that more information is needed so that the council has a better understanding of the commission's reasoning for recommending changes when legal criteria isn't met.
However, Cochran's ordinance would reword the law to define the report as coming from the parish Planning and Zoning Department, which already provides an analysis and recommendation for each matter that comes before the body.
The law would clarify the process for handling land-use matters, Cochran said Tuesday.
"The commission has evolved over the years," Cochran said. "I think that what is being done works."
Because the measure deals with procedures involving land use, it first must be heard by the Planning And Zoning Commission once public-notice requirements are satisfied.
Matt Scallan can be reached at firstname.lastname@example.com or 985.652.0953.