Warren Buffet
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Summary of Warren Buffett's 2002 Letter to Shareholders
Warren Buffet writes an annual letter to stockholders informing them of the successes and failures of Berkshire Hathaway for the past year. 2002 was a very good year for Berkshire Hathaway. He begins by saying that they had a gain in net worth of $6.1 billion. This gain caused the per-share book value of the stocks to rise by 10%. Their stock out performed the S&P 500 by 32.1 percentage points. Next, Buffett gives an overview of his 23 page letter which includes talking about the non-insurance operations, the insurance groups, the acquisition of some new businesses, and marketable securities. Buffett explains that part of the reason there was so much success in 2002 was because there was no megacatastrophe, which means that they earned more from insurance than they would have if there had been normal losses. He even tells the shareholders that some of the bonds they are seeing gains from will certainly diminish within the next few years...