Dear Mr. Market:

This past weekend, the investment world descended on Omaha, Nebraska; best known perhaps as the hometown of one of the most successful investors in the world. Warren Buffett, also known as the “Oracle of Omaha”, will be hosting investors at the annual Berkshire Hathaway shareholders meeting. The schedule is filled with presentations, shopping & dining experiences, and social interactions that will be the highlight for many individual investors.

The investment community has been fascinated with Warren Buffett for his colorful comments and impressive track record. He has proven to be a in a class all by himself looking for good companies at an attractive price and has never been scared to be a contrarian. Flipping through the pages of the 2014 Berkshire Hathaway Annual Report, we can’t help but notice that many of the principles Buffett applies to prospective investments are now making his own company look very attractive.

The class ‘B’ shares of Berkshire Hathaway (BRK.B) currently trade at $141.21 per share while the ‘A’ shares trade for an impressive $213,400 per share! Through the first four months of the year BRK.B is down -5.93% while the S&P 500 is up 1.3%. Buffett has been quoted as saying, “price is what you pay, value is what you get.” Last year (2014) the S&P 500 delivered an impressive 13% and BRK.B doubled that, rewarding investors with a 26% return for the year. Continue reading →