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I know there are plenty of readers out there that are Warren Buffett fans based on the requests for the "Annual Letters of Buffett Partnership, Limited, 1957 – 1970."
The new Berkshire Hathaway 2007 Annual Report is out and available on line. It’s dynamite. Paragraph #4 follows:
You may recall a 2003 Silicon Valley bumper sticker that implored, “Please, God, Just One More Bubble.” Unfortunately, this wish was promptly granted, as just about all Americans came to believe that house prices would forever rise. That conviction made a borrower’s income and cash equity seem unimportant to lenders, who shoveled out money, confident that HPA – house price appreciation – would cure all problems. Today, our country is experiencing widespread pain because of that erroneous belief. As house prices fall, a huge amount of financial folly is being exposed. You only learn who has been swimming naked when the tide goes out – and what we are witnessing at some of our largest financial institutions is an ugly sight.
As usual, there is a lot more where that came from.