Chuck Akre shareholder letter: The current environment is “Fear and Panic 101”, and as is almost always the case, it is being fueled by credit issues of one kind or another.
The current threat relates to Freddie Mac and Fannie Mae’s very survival, a very significant issue in the economy of our country. Perhaps by the time you read this letter, the resolution of this “crisis” will be evident, and this leg of the panic will have subsided.
I am personally in a position where the majority of my investment assets are in common stocks –no bonds in my account. I am at social security age, but don’t yet draw on social security. My assets have declined substantially in this market, just like yours, because I own many of the same companies as you do. I actually have no concerns about my holdings, however I fret terribly about the performance of your portfolios during this market swoon. Few of us are actually able to “walk the talk” of Buffett’s and Graham’s notion that we should be thrilled if our stocks decline by 50%. In fact, the recent market action distresses me, even as I know that I own terrific businesses, run by outstanding managers, who are able to compound my capital at well above average rates.
Read the complete commentary
The current threat relates to Freddie Mac and Fannie Mae’s very survival, a very significant issue in the economy of our country. Perhaps by the time you read this letter, the resolution of this “crisis” will be evident, and this leg of the panic will have subsided.
I am personally in a position where the majority of my investment assets are in common stocks –no bonds in my account. I am at social security age, but don’t yet draw on social security. My assets have declined substantially in this market, just like yours, because I own many of the same companies as you do. I actually have no concerns about my holdings, however I fret terribly about the performance of your portfolios during this market swoon. Few of us are actually able to “walk the talk” of Buffett’s and Graham’s notion that we should be thrilled if our stocks decline by 50%. In fact, the recent market action distresses me, even as I know that I own terrific businesses, run by outstanding managers, who are able to compound my capital at well above average rates.
Read the complete commentary
