UnderwritingProfit YearendFloat (inmillions) InsuranceOperations 2009 2008 2009 2008 GeneralRe ......................$477$342 $21,014$21,074 BHReinsurance ..................349 1,32426,22324,221 GEICO .........................649916 9,6138,454 OtherPrimary ...................84210 5,0614,739 $1,559$2,792$61,911$58,488 ************ Andnowapainful confession:Lastyearyourchairmanclosedthebookonaveryexpensivebusiness fiascoentirelyofhisownmaking. FormanyyearsIhadstruggledtothinkofsideproductsthatwecouldofferourmillionsofloyal GEICOcustomers.Unfortunately,Ifinallysucceeded,comingupwithabrilliantinsightthatweshouldmarket ourowncreditcard.IreasonedthatGEICOpolicyholderswerelikelytobegoodcreditrisksand,assumingwe offeredanattractivecard,wouldlikelyfavoruswiththeirbusiness.Wegotbusinessallright–butofthewrong type. Ourpre-taxlossesfromcredit-cardoperationscametoabout$6.3millionbeforeIfinallywokeup.We thensoldour$98millionportfoliooftroubledreceivablesfor55¢onthedollar,losinganadditional$44million. GEICO’smanagers,itshouldbeemphasized,wereneverenthusiasticaboutmyidea.Theywarnedme thatinsteadofgettingthecreamofGEICO’scustomerswewouldgetthe ––––– well,let’scallitthe non-cream.IsubtlyindicatedthatIwasolderandwiser. Iwasjustolder. RegulatedUtilityBusiness Berkshirehasan89.5%interestinMidAmericanEnergyHoldings,whichownsawidevarietyof utilityoperations.Thelargestoftheseare(1)YorkshireElectricityandNorthernElectric,whose3.8millionend usersmakeittheU.K.’sthirdlargestdistributorofelectricity;(2)MidAmericanEnergy,whichserves725,000 electriccustomers,primarilyinIowa;(3)PacificPowerandRockyMountainPower,servingabout1.7million electriccustomersinsixwesternstates;and(4)KernRiverandNorthernNaturalpipelines,whichcarryabout 8%ofthenaturalgasconsumedintheU.S. MidAmericanhastwoterrificmanagers,DaveSokolandGregAbel.Inaddition,mylong-timefriend, WalterScott,alongwithhisfamily,hasamajorownershippositioninthecompany.Walterbringsextraordinary businesssavvyto any operation.TenyearsofworkingwithDave,GregandWalterhavereinforcedmyoriginal belief:Berkshirecouldn’thavebetterpartners.Theyaretrulyadreamteam. Somewhatincongruously,MidAmericanalsoownsthesecondlargestrealestatebrokeragefirminthe U.S.,HomeServicesofAmerica.Thiscompanyoperatesthrough21locally-brandedfirmsthathave16,000 agents.Thoughlastyearwasagainaterribleyearforhomesales,HomeServicesearnedamodestsum.Italso acquiredafirminChicagoandwilladdotherqualitybrokerageoperationswhentheyareavailableatsensible prices.Adecadefromnow,HomeServicesislikelytobemuchlarger. 8HerearesomekeyfiguresonMidAmerican’soperations: Earnings(inmillions) 2009 2008 U.K.utilities ............................................................$248$339 Iowautility .............................................................285425 Westernutilities .........................................................788703 Pipelines ...............................................................457595 HomeServices ...........................................................43 (45) Other(net) ..............................................................25186 Operatingearningsbeforecorporateinterestandtaxes ........................... 1,8462,203 ConstellationEnergy* ....................................................— 1,092 Interest,otherthantoBerkshire ............................................. (318)(332) InterestonBerkshirejuniordebt ............................................. (58)(111) Incometax .............................................................. (313)(1,002) Netearnings .............................................................$ 1,157$1,850 EarningsapplicabletoBerkshire** ..........................................$ 1,071$1,704 Debtowedtoothers ....................................................... 19,57919,145 DebtowedtoBerkshire ....................................................353 1,087 *Consistsofabreakupfeeof$175millionandaprofitonourinvestmentof$917million. **IncludesinterestearnedbyBerkshire(netofrelatedincometaxes)of$38in2009and$72in2008. Ourregulatedelectricutilities,offeringmonopolyserviceinmostcases,operateinasymbioticmanner withthecustomersintheirserviceareas,withthoseusersdependingonustoprovidefirst-classserviceand investfortheirfutureneeds.Permittingandconstructionperiodsforgenerationandmajortransmissionfacilities stretchwayout,soitisincumbentonustobefar-sighted.We,inturn,looktoourutilities’regulators(actingon behalfofourcustomers)toallowusanappropriatereturnonthehugeamountsofcapitalwemustdeploytomeet futureneeds.Weshouldn’texpectourregulatorstoliveuptotheirendofthebargainunlessweliveuptoours. DaveandGregmakesurewedojustthat.NationalresearchcompaniesconsistentlyrankourIowaand Westernutilitiesatornearthetopoftheirindustry.Similarly,amongthe43U.S.pipelinesrankedbyafirm namedMastio,ourKernRiverandNorthernNaturalpropertiestiedforsecondplace. Moreover,wecontinuetopourhugesumsofmoneyintoouroperationssoastonotonlypreparefor thefuturebutalsomaketheseoperationsmoreenvironmentallyfriendly.SincewepurchasedMidAmericanten yearsago,ithas never paidadividend.Wehaveinsteadusedearningstoimproveandexpandourpropertiesin eachoftheterritoriesweserve.Asonedramaticexample,inthelastthreeyearsourIowaandWesternutilities haveearned$2.5billion,whileinthissameperiodspending$3billiononwindgenerationfacilities. MidAmericanhasconsistentlykeptitsendofthebargainwithsocietyand,tosociety’scredit,ithas reciprocated:Withfewexceptions,ourregulatorshavepromptlyallowedustoearnafairreturnontheever- increasingsumsofcapitalwemustinvest.Goingforward,wewilldowhateverittakestoserveourterritoriesin themannertheyexpect.Webelievethat,inturn,wewillbeallowedthereturnwedeserveonthefundswe invest. Inearlierdays,CharlieandIshunnedcapital-intensivebusinessessuchaspublicutilities.Indeed,the bestbusinessesbyfarforownerscontinuetobethosethathavehighreturnsoncapitalandthatrequirelittle incrementalinvestmenttogrow.Wearefortunatetoownanumberofsuchbusinesses,andwewouldlovetobuy more.Anticipating,however,thatBerkshirewillgenerateever-increasingamountsofcash,wearetodayquite willingtoenterbusinessesthatregularlyrequirelargecapitalexpenditures.Weexpectonlythatthesebusinesses havereasonableexpectationsofearningdecentreturnsontheincrementalsumstheyinvest.Ifourexpectations aremet–andwebelievethattheywillbe–Berkshire’sever-growingcollectionofgoodtogreatbusinesses shouldproduceabove-average,thoughcertainlynotspectacular,returnsinthedecadesahead. 9OurBNSFoperation,itshouldbenoted,hascertainimportanteconomiccharacteristicsthatresemble thoseofourelectricutilities.Inbothcasesweprovidefundamentalservicesthatare,andwillremain,essentialto theeconomicwell-beingofourcustomers,thecommunitiesweserve,andindeedthenation.Bothwillrequire heavyinvestmentthatgreatlyexceedsdepreciationallowancesfordecadestocome.Bothmustalsoplanfar aheadtosatisfydemandthatisexpectedtooutstriptheneedsofthepast.Finally,bothrequirewiseregulators whowillprovidecertaintyaboutallowablereturnssothatwecanconfidentlymakethehugeinvestments requiredtomaintain,replaceandexpandtheplant. Weseea“socialcompact”existingbetweenthepublicandourrailroadbusiness,justasisthecase withourutilities.Ifeithersideshirksitsobligations,bothsideswillinevitablysuffer.Therefore,bothpartiesto thecompactshould–andwebelievewill–understandthebenefitofbehavinginawaythatencouragesgood behaviorbytheother.Itisinconceivablethatourcountrywillrealizeanythingclosetoitsfulleconomic potentialwithoutitspossessingfirst-classelectricityandrailroadsystems.Wewilldoourparttoseethatthey exist. Inthefuture,BNSFresultswillbeincludedinthis“regulatedutility”section.Asidefromthetwo businesseshavingsimilarunderlyingeconomiccharacteristics,botharelogicalusersofsubstantialamountsof debtthatis not guaranteedbyBerkshire.Bothwillretainmostoftheirearnings.Bothwillearnandinvestlarge sumsingoodtimesorbad,thoughtherailroadwilldisplaythegreatercyclicality.Overall,weexpectthis regulatedsectortodeliversignificantlyincreasedearningsovertime,albeitatthecostofourinvestingmanytens –yes,tens–ofbillionsofdollarsofincrementalequitycapital. Manufacturing,ServiceandRetailingOperations OuractivitiesinthispartofBerkshirecoverthewaterfront.Let’slook,though,atasummarybalance sheetandearningsstatementfortheentiregroup. BalanceSheet12/31/09(inmillions) Assets Cashandequivalents .................$ 3,018 Accountsandnotesreceivable .......... 5,066 Inventory .......................... 6,147 Othercurrentassets ..................625 Totalcurrentassets ................... 14,856 Goodwillandotherintangibles ......... 16,499 Fixedassets ........................ 15,374 Otherassets ........................ 2,070 $48,799 LiabilitiesandEquity Notespayable .......................$ 1,842 Othercurrentliabilities ............... 7,414 Totalcurrentliabilities ................ 9,256 Deferredtaxes ...................... 2,834 Termdebtandotherliabilities .......... 6,240 Equity ............................. 30,469 $48,799 EarningsStatement(inmillions) 2009 2008 2007 Revenues ......................................................... $61,665$66,099$59,100 Operatingexpenses(includingdepreciationof$1,422in2009,$1,280in2008 and$955in2007) ................................................. 59,50961,93755,026 Interestexpense ....................................................98139127 Pre-taxearnings .................................................... 2,058*4,023*3,947* Incometaxesandminorityinterests .....................................945 1,7401,594 Netincome ........................................................$ 1,113$2,283$2,353 *Doesnotincludepurchase-accountingadjustments. 10Almostallofthemanyandwidely-diverseoperationsinthissectorsufferedtoonedegreeoranother from2009’ssevererecession.ThemajorexceptionwasMcLane,ourdistributorofgroceries,confectionsand non-fooditemstothousandsofretailoutlets,thelargestbyfarWal-Mart. GradyRosierledMcLanetorecordpre-taxearningsof$344million,whichevensoamountedtoonly slightlymorethanonecentperdollaronitshugesalesof$31.2billion.McLaneemploysavastarrayofphysical assets–practicallyallofwhichitowns–including3,242trailers,2,309tractorsand55distributioncenterswith 15.2millionsquarefeetofspace.McLane’sprimeasset,however,isGrady. Wehadanumberofcompaniesatwhichprofitsimprovedevenassalescontracted,alwaysan exceptionalmanagerialachievement.HerearetheCEOswhomadeithappen: COMPANY CEO BenjaminMoore(paint)DenisAbrams Borsheims(jewelryretailing)SusanJacques H.H.Brown(manufacturingandretailingofshoes)JimIssler CTB(agriculturalequipment)VicMancinelli DairyQueenJohnGainor NebraskaFurnitureMart(furnitureretailing)RonandIrvBlumkin PamperedChef(directsalesofkitchentools)MarlaGottschalk See’s(manufacturingandretailingofcandy)BradKinstler StarFurniture(furnitureretailing)BillKimbrell Amongthebusinessesweownthathavemajorexposuretothedepressedindustrialsector,both MarmonandIscarturnedinrelativelystrongperformances.FrankPtak’sMarmondelivereda13.5%pre-tax profitmargin,arecordhigh.Thoughthecompany’ssalesweredown27%,Frank’scost-consciousmanagement mitigatedthedeclineinearnings. NothingstopsIsrael-basedIscar–notwars,recessionsorcompetitors.Theworld’stwootherleading suppliersofsmallcuttingtoolsbothhadverydifficultyears,eachoperatingatalossthroughoutmuchofthe year.ThoughIscar’sresultsweredownsignificantlyfrom2008,thecompanyregularlyreportedprofits,even whileitwasintegratingandrationalizingTungaloy,thelargeJapaneseacquisitionthatwetoldyouaboutlast year.Whenmanufacturingrebounds,Iscarwillsetnewrecords.ItsincrediblemanagerialteamofEitan Wertheimer,JacobHarpazandDannyGoldmanwillseetothat. Everybusinessweownthatisconnectedtoresidentialandcommercialconstructionsufferedseverely in2009.Combinedpre-taxearningsofShaw,JohnsManville,AcmeBrick,andMiTekwere$227million,an 82.5%declinefrom$1.295billionin2006,whenconstructionactivitywasbooming.Thesebusinessescontinue tobumpalongthebottom,thoughtheircompetitivepositionsremainundented. ThemajorproblemforBerkshirelastyearwasNetJets,anaviationoperationthatoffersfractional ownershipofjets.Overtheyears,ithasbeenenormouslysuccessfulinestablishingitselfasthepremiercompany initsindustry,withthevalueofitsfleetfarexceedingthatofitsthreemajorcompetitors combined.Overall,our dominanceinthefieldremainsunchallenged. NetJets’businessoperation,however,hasbeenanotherstory.Intheelevenyearsthatwehaveowned thecompany,ithasrecordedanaggregatepre-taxlossof$157million.Moreover,thecompany’sdebthassoared from$102millionatthetimeofpurchaseto$1.9billioninApriloflastyear.WithoutBerkshire’sguaranteeof thisdebt,NetJetswouldhavebeenoutofbusiness.It’sclearthatIfailedyouinlettingNetJetsdescendintothis condition.But,luckily,Ihavebeenbailedout. 11DaveSokol,theenormouslytalentedbuilderandoperatorofMidAmericanEnergy,becameCEOof NetJetsinAugust.Hisleadershiphasbeentransforming:Debthasalreadybeenreducedto$1.4billion,and,after sufferingastaggeringlossof$711millionin2009,thecompanyisnowsolidlyprofitable. Mostimportant,noneofthechangeswroughtbyDavehaveinanywayundercutthetop-of-the-line standardsforsafetyandservicethatRichSantulli,NetJets’previousCEOandthefatherofthefractional- ownershipindustry,insistedupon.DaveandIhavethestrongestpossiblepersonalinterestinmaintainingthese standardsbecauseweandourfamiliesuseNetJetsforalmostallofourflying,asdomanyofourdirectorsand managers.Noneofusareassignedspecialplanesnorcrews.Wereceiveexactlythesametreatmentasanyother owner,meaningwepaythesamepricesaseveryoneelsedoeswhenweareusingourpersonalcontracts.Inshort, weeatourowncooking.Intheaviationbusiness,noothertestimonialmeansmore. FinanceandFinancialProducts OurlargestoperationinthissectorisClaytonHomes,thecountry’sleadingproducerofmodularand manufacturedhomes.Claytonwasnotalwaysnumberone:Adecadeagothethreeleadingmanufacturerswere Fleetwood,ChampionandOakwood,whichtogetheraccountedfor44%oftheoutputoftheindustry.Allhave sincegonebankrupt.Totalindustryoutput,meanwhile,hasfallenfrom382,000unitsin1999to60,000unitsin 2009. Theindustryisinshamblesfortworeasons,thefirstofwhichmustbelivedwithiftheU.S.economy istorecover.ThisreasonconcernsU.S.housingstarts(includingapartmentunits).In2009,startswere554,000, byfarthelowestnumberinthe50yearsforwhichwehavedata.Paradoxically,thisis good news. People thought itwasgoodnewsafewyearsbackwhenhousingstarts–thesupplysideofthepicture –wererunningabouttwomillionannually.Buthouseholdformations–thedemandside–onlyamountedto about1.2million.Afterafewyearsofsuchimbalances,thecountryunsurprisinglyendedupwithfartoomany houses. Therewerethreewaystocurethisoverhang:(1)blowupalotofhouses,atacticsimilartothe destructionofautosthatoccurredwiththe“cash-for-clunkers”program;(2)speeduphouseholdformationsby, say,encouragingteenagerstocohabitate,aprogramnotlikelytosufferfromalackofvolunteersor;(3)reduce newhousingstartstoanumberfarbelowtherateofhouseholdformations. Ourcountryhaswiselyselectedthethirdoption,whichmeansthatwithinayearorsoresidential housingproblemsshouldlargelybebehindus,theexceptionsbeingonlyhigh-valuehousesandthoseincertain localitieswhereoverbuildingwasparticularlyegregious.Priceswillremainfarbelow“bubble”levels,ofcourse, butforeveryseller(orlender)hurtbythistherewillbeabuyerwhobenefits.Indeed,manyfamiliesthatcouldn’t affordtobuyanappropriatehomeafewyearsagonowfinditwellwithintheirmeansbecausethebubbleburst. Thesecondreasonthatmanufacturedhousingistroubledisspecifictotheindustry:thepunitive differentialinmortgageratesbetweenfactory-builthomesandsite-builthomes.Beforeyoureadfurther,letme underscoretheobvious:Berkshirehasadoginthisfight,andyoushouldthereforeassessthecommentarythat followswithspecialcare.Thatwarningmade,however,letmeexplainwhytheratedifferentialcausesproblems forbothlargenumbersoflower-incomeAmericansandClayton. TheresidentialmortgagemarketisshapedbygovernmentrulesthatareexpressedbyFHA,Freddie MacandFannieMae.Theirlendingstandardsareall-powerfulbecausethemortgagestheyinsurecantypically besecuritizedandturnedintowhat,ineffect,isanobligationoftheU.S.government.Currentlybuyersof conventionalsite-builthomeswhoqualifyfortheseguaranteescanobtaina30-yearloanatabout51⁄4%.In addition,thesearemortgagesthathaverecentlybeenpurchasedinmassiveamountsbytheFederalReserve,an actionthatalsohelpedtokeepratesatbargain-basementlevels. Incontrast,veryfewfactory-builthomesqualifyforagency-insuredmortgages.Therefore,a meritoriousbuyerofafactory-builthomemustpayabout9%onhisloan.Fortheall-cashbuyer,Clayton’s homesofferterrificvalue.Ifthebuyerneedsmortgagefinancing,however–and,ofcourse,mostbuyersdo–the differenceinfinancingcoststoooftennegatestheattractivepriceofafactory-builthome. 12LastyearItoldyouwhyourbuyers–generallypeoplewithlowincomes–performedsowellascredit risks.Theirattitudewasall-important:Theysigneduptoliveinthehome,notresellorrefinanceit. Consequently,ourbuyersusuallytookoutloanswithpaymentsgearedtotheirverifiedincomes(weweren’t making“liar’sloans”)andlookedforwardtothedaytheycouldburntheirmortgage.Iftheylosttheirjobs,had healthproblemsorgotdivorced,wecouldofcourseexpectdefaults.Buttheyseldomwalkedawaysimply becausehousevalueshadfallen.Eventoday,thoughjob-losstroubleshavegrown,Clayton’sdelinquenciesand defaultsremainreasonableandwillnotcauseussignificantproblems. Wehavetriedtoqualifymoreofourcustomers’loansfortreatmentsimilartothoseavailableonthe site-builtproduct.Sofarwehavehadonlytokensuccess.Manyfamilieswithmodestincomesbutresponsible habitshavethereforehadtoforegohomeownershipsimplybecausethefinancingdifferentialattachedtothe factory-builtproductmakesmonthlypaymentstooexpensive.Ifqualificationsaren’tbroadened,soastoopen low-costfinancingto all whomeetdown-paymentandincomestandards,themanufactured-homeindustryseems destinedtostruggleanddwindle. Evenundertheseconditions,IbelieveClaytonwilloperateprofitablyincomingyears,thoughwell belowitspotential.Wecouldn’thaveabettermanagerthanCEOKevinClayton,whotreatsBerkshire’sinterests asiftheywerehisown.Ourproductisfirst-class,inexpensiveandconstantlybeingimproved.Moreover,wewill continuetouseBerkshire’scredittosupportClayton’smortgageprogram,convincedasweareofitssoundness. Evenso,Berkshirecan’tborrowatarateapproachingthatavailabletogovernmentagencies.Thishandicapwill limitsales,hurtingbothClaytonandamultitudeofworthyfamilieswholongforalow-costhome. Inthefollowingtable,Clayton’searningsarenetofthecompany’spaymenttoBerkshirefortheuseof itscredit.OffsettingthiscosttoClaytonisanidenticalamountofincomecreditedtoBerkshire’sfinance operationandincludedin“OtherIncome.”Thecostandincomeamountwas$116millionin2009and$92 millionin2008. Thetablealsoillustrateshowseverelyourfurniture(CORT)andtrailer(XTRA)leasingoperations havebeenhitbytherecession.Thoughtheircompetitivepositionsremainasstrongasever,wehaveyettosee anybounceinthesebusinesses. Pre-TaxEarnings (inmillions) 2009 2008 Netinvestmentincome ....................................... $278$330 Lifeandannuityoperation ....................................11623 Leasingoperations ..........................................1487 Manufactured-housingfinance(Clayton) ........................187206 Otherincome* .............................................186141 Incomebeforeinvestmentandderivativesgainsorlosses ........... $781$787 *Includes$116millionin2009and$92millionin2008offeesthatBerkshirechargesClaytonforthe useofBerkshire’scredit. ************ Attheendof2009,webecamea50%ownerofBerkadiaCommercialMortgage(formerlyknownas Capmark),thecountry’sthird-largestservicerofcommercialmortgages.Inadditiontoservicinga$235billion portfolio,thecompanyisanimportantoriginatorofmortgages,having25officesspreadaroundthecountry. Thoughcommercialrealestatewillfacemajorproblemsinthenextfewyears,long-termopportunitiesfor Berkadiaaresignificant. 13OurpartnerinthisoperationisLeucadia,runbyJoeSteinbergandIanCumming,withwhomwehada terrificexperiencesomeyearsbackwhenBerkshirejoinedwiththemtopurchaseFinova,atroubledfinance business.Inresolvingthatsituation,JoeandIandidfarmorethantheirshareofthework,anarrangementI alwaysencourage.Naturally,IwasdelightedwhentheycalledmetopartneragainintheCapmarkpurchase. OurfirstventurewasalsochristenedBerkadia.Solet’scallthisoneSonofBerkadia.SomedayI’llbe writingyouaboutGrandsonofBerkadia. Investments Belowweshowourcommonstockinvestmentsthatatyearendhadamarketvalueofmorethan$1billion. 12/31/09 Shares Company Percentageof Company Owned Cost* Market (inmillions) 151,610,700AmericanExpressCompany ........................ 12.7$1,287$6,143 225,000,000BYDCompany,Ltd. ..............................9.9232 1,986 200,000,000TheCoca-ColaCompany ..........................8.6 1,29911,400 37,711,330ConocoPhillips ..................................2.5 2,7411,926 28,530,467Johnson&Johnson ...............................1.0 1,7241,838 130,272,500KraftFoodsInc. .................................8.8 4,3303,541 3,947,554POSCO ........................................5.2768 2,092 83,128,411TheProcter&GambleCompany ....................2.9533 5,040 25,108,967Sanofi-Aventis ..................................1.9 2,0271,979 234,247,373Tescoplc .......................................3.0 1,3671,620 76,633,426U.S.Bancorp ....................................4.0 2,3711,725 39,037,142Wal-MartStores,Inc. .............................1.0 1,8932,087 334,235,585WellsFargo&Company ..........................6.5 7,3949,021 Others ......................................... 6,6808,636 TotalCommonStocksCarriedatMarket .............. $34,646$59,034 *Thisisouractualpurchasepriceandalsoourtaxbasis;GAAP“cost”differsinafewcasesbecauseof write-upsorwrite-downsthathavebeenrequired. Inaddition,weownpositionsinnon-tradedsecuritiesofDowChemical,GeneralElectric,Goldman Sachs,SwissReandWrigleywithanaggregatecostof$21.1billionandacarryingvalueof$26.0billion.We purchasedthesefivepositionsinthelast18months.Settingasidethesignificantequitypotentialtheyprovideus, theseholdingsdeliverusanaggregateof$2.1billionannuallyindividendsandinterest.Finally,weowned 76,777,029shares(22.5%)ofBNSFatyearend,whichwethencarriedat$85.78pershare,butwhichhave subsequentlybeenmeldedintoourpurchaseoftheentirecompany. In2009,ourlargestsaleswereinConocoPhillips,Moody’s,Procter&GambleandJohnson&Johnson (salesofthelatteroccurringafterwehadbuiltourpositionearlierintheyear).CharlieandIbelievethatallof thesestockswilllikelytradehigherinthefuture.Wemadesomesalesearlyin2009toraisecashforourDow andSwissRepurchasesandlateintheyearmadeothersalesinanticipationofourBNSFpurchase. 14Wetoldyoulastyearthatveryunusualconditionsthenexistedinthecorporateandmunicipalbond marketsandthatthesesecuritieswereridiculouslycheaprelativetoU.S.Treasuries.Webackedthisviewwith somepurchases,butIshouldhavedonefarmore.Bigopportunitiescomeinfrequently.Whenit’sraininggold, reachforabucket,notathimble.
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