There are a million reasons for investors to go and read Warren Buffett's annual letter to Berkshire Hathaway Inc. (NYSE: BRK.A) shareholders. In fact, at this point – let's face it – they're really letters to every single shareholder on Earth.
In these letters, you're absolutely guaranteed to find some of the most uncommon common sense in all of Anglo-American capitalist thought, as well as fundamentally sound arguments and insights colored by deep experience.
In other words, the "Oracle of Omaha," the stock market's friendly, shrewd, and unreasonably rich grandpa, dishes really good stuff in these letters – in plain, Nebraska-accented English, to boot.
But here's the catch: If you're going to "invest like Buffett," you absolutely, positively must be prepared to hang tough like Buffett…
…and, inevitably, you have to be ready to hemorrhage money like Buffett.
That is exactly why what the Oracle of Omaha said this year was so shocking to the uninitiated.
Turns out, sometimes the Oracle's job is to scare the living daylights out of you – go ask any ancient Greek you meet at the bar.
Here's the hard truth…
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.