Wednesday, March 23, 2011

Scratch That Itch

Last month, Berkshire Hathaway issued its annual shareholder letter.  It is always enlightening to see what Warren Buffet has to say, and the most reveling quote in the letter is "Our elephant gun has been reloaded, and my trigger finger is itchy"  This means that Mr. Buffett is eager to buy more companies, which shows just how optimistic he is about the future.  He scratched that itch two weeks ago when Berkshire paid $9 billion for Lubrizol.  

Now Mr. Buffett is in Korea, still itching for big deals.  His optimism about the economic future is very interesting, because he hasn't always been so positive.  He warned early that the market bubble and our recent housing bubble would not end well.  The fact that he is now circling the globe looking for good investments should make us think that maybe good times are ahead.