Steady as she goes

Further to my last post and the gap in time between this and that one, everything's pretty much set in motion for the trip to visit Warren Buffett on March 31st. Some recent news has made this trip a bit more special, in that The Oracle of Omaha is now the richest man in the world, according to the just-released annual list. Not that Mr. Buffett would be fazed by such an honour, but I wonder how he's reacting to the spotlight, from his small home in the centre of the United States?

As we all know, with the good come the bad. Yesterday, my BRK.B shares traded down below my purchase price for the first time since buying them many weeks ago. Of course, the last thing I am is worried about them. Instead, I'm excited to be a shareholder and to receive my copy of the Annual Report, which I intend to take with me and have signed on the 31st, instead of the Intelligent Investor or Mr. Buffett's book of essays. I figure that would be a more appropriate marker in time.

Lastly, I just came back from a week by the pool in the Dominican Republic, during which I read the "Value Investing" text for my course, as well as the first half of "The Intelligent Investor", aside from catching up on a swack of podcasts. I'm glad I read the VI book first, given that I know am inclined to look up some of the other famous value investors written about in the back half of the book. Also, I now better appreciate the balance-sheet based method of valuation than I did before, since it puts less emphasis on growth opportunities than other methods heralded and taught today. As we get more and more clarity on the possibility of a recession, I sense that some good, old-fashioned value plays will be ripe for the picking, especially as companies with a strong franchise like lululemon trade into lower and lower territories.