Dear Mr. Buffett_ What an Investor Learns 1,269 Miles From Wall Street - Janet M. Tavakoli [3]
Monetary wealth is just one measure of value, however. Steven F. Haward, in writing about Winston Churchill, noted the characteristics that set him apart from other men: “candor and plain speaking, decisiveness, the ability to balance attention to details with a view of the wider scene, and a historical imagination that informed his judgment.” 2 I could say the same for Warren Buffett. But I have to add that he has a genuine affection for the human race, and a generous desire for everyone to get as much from life as he does. He shared that with me, and now I am sharing it with you.
In the interest of full disclosure, I own Berkshire Hathaway stock (BRKA).
Acknowledgments
I would like to thank the many people who offered comments, encouragement, and suggestions, especially Arturo Cifuentes, Ph.D., managing director, R.W. Pressprich & Co.; David Kuenzi, head of Risk Management and Quantitative Research at Man Glenwood; Lee Argush, cofounder and executive managing director of Concord Wealth Management; Jim Rogers of Rogers Holdings; Hilary Till, cofounder, Premia Capital Management, LLC; Carl Schuman; Costas Kaplanis; Kenneth Brian Brummel, who made tactful comments on an early draft; Greg Newton, founding publisher, MAR/Hedge; Michael Siconolfi, senior editor at the Wall Street Journal; Eric Gleacher, founder and chairman of Gleacher Partners; Stephen Partridge-Hicks, cofounder of Gordian Knot; Suzette Haden Elgin, Ph.D. (for decades-old encouragement—you may have forgotten, but I have not); and Edward Stone, Nancie Poulos, Fred Watson, Julian Tyacke (for the question), Andrew Tobias, Osamu Yamada, J.Allen Meyer, Mary Anna Evans,Allen Salter, Rita Ilse Guhrauer, Teresa Brinati, and Libby Hellmann. I would also like to thank the many people who did not wish to be named but who acted as mutual sounding boards.
My manuscript benefited from constructive comments from the editors of John Wiley & Sons, namely Pamela van Giessen, who took a special interest in this project and gave developmental suggestions; Emilie Herman, who removed many speed bumps; Kate Wood, who facilitated; Todd Tedesco, senior production editor; and James Reidel, who copyedited.
Finally, I would like to thank Warren Buffett, chairman of Berkshire Hathaway, who told me to “keep writing.”
No opinions or theories presented in this book necessarily represent those of the people I have thanked. I am responsible for any errors, statements, interpretations, or conclusions.
Chapter 1
An Unanswered Invitation
Be sure to stop by if you are ever in Omaha and want to talk credit derivatives . . .
—Warren Buffett in a letter
to Janet Tavakoli, June 6, 2005
It was August 1, 2005, and I was rereading a letter in my correspondence file dated June 6, 2005.The letter was from Warren Buffett, the CEO of the gargantuan Berkshire Hathaway conglomerate. I had not yet responded and had no explanation for the delay save for a little awe. For the several years prior, Fortune listed Warren Buffett as either the richest or second richest man on the planet. He and Bill Gates annually jousted for the top spot, with the outcome depending on the relative share prices of Berkshire Hathaway and Microsoft.
Several years earlier, I had sent Warren Buffett a copy of my book, Credit Derivatives & Synthetic Structures. In his letter Buffett wrote that he had been looking at the book again and had just found a letter I had tucked between the pages, “Please accept my apologies,” he continued, “for not replying to you when I first received it.”1 He invited me to stop by if I were ever in Omaha. I looked up. After all this time, I could not remember what I had written in that old letter. I did know that I had not expected a response. But certainly now a response was needed from me, a belated one.“Dear Mr.