Fun Facts Newsletter

Fun Facts Newsletter - March 2011

On February 26, 2011, Warren Buffett, Chairman of Berkshire Hathaway, published his annual "Letter to Shareholders." The 24 page document is widely read by investment professionals and shareholders alike since Mr. Buffett goes to great length (literally) to explain his outlook on the world.

Fortunately, this year he stresses a distinctly optimistic note. He envisions 2011 "possessing a general business climate somewhat better than that of 2010 but weaker than that of 2005 or 2006." He further states, "In 2011, we will set a new record for capital spending-$8 billion- and spend all of the $2 billion increase in the United States."

"Money will always flow toward opportunity, and there is an abundance of that in America. Commentators today often talk of "great uncertainty." But think back, for example, to December 6, 1941, October 18, 1987 and September 10, 2001. No matter how serene today may be, tomorrow is always uncertain."

Most importantly, he states "The prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted, and the American system for unleashing that potential-a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War-remains alive and effective." Finally, "Now, as in 1776, 1861, 1932 and 1941, America's best days lie ahead."

As income tax return preparation season heats up, please remember that we mailed your Realized Gains and Losses Report and Management Fee expense report to you in early January with your December 31, 2010 reports. Please use this for your income tax preparation or give them to your tax preparer. Please let us know if you have any questions and we are happy to answer questions directly from your tax preparer for your convenience. If you need to make Estimated Tax Payments for 2011, we encourage you to consider the free federal Electronic Funds Transfer Payment System wherein you can schedule your payments in advance so you don't forget. Information is available at www.eftps.gov. Prepare your tax returns early so you can enjoy the spring weather! As always, we appreciate the opportunity to serve you.