As people around the world were watching the royal wedding, I mean the wedding of Prince William of Wales and his fiancee Ms Catherine Middleton, investors of Berkshire Hathaway were preparing for the company’s AGM (annual General Meeting).
On the 30 April 2011, Charlie Munger and Warren Buffet of Berkshire Hathaway hosted their annual general meeting. Warren Buffet, now 81 year old remain my all time favourite person. Not only does he inspire me with his intelligent way of investing, but also with his dedication to philanthropy.
In practice, just before the annual general meeting, listed companies send what is called “Notice of AGM” to their shareholders. Notice of AGM (annual general meeting) is the letter that notifies shareholders of the upcoming companys’ general meeting. Berkshire Hathaway is not an exception to this practice. Earlier this year, when Berkshire Hathaway send the letters to its shareholders, I also managed to put my fingers on the copy. I am not saying that I am a shareholder of Berkshire, I will need to work for donkeys years to afford one unit of stock in Berkshire, but I checked that letter out of curiosity.
Financial illiteracy is a problem in Africa. We need a mechanism in with which the problem of financial illiteracy can be addressed. According to the Saving institute of South Africa, about 2% of South Africa’s working population are saving.
Financial literacy can be defined as follows:
Financial literacy is the combination of consumers/investors understanding of financial facts and concept, and their ability to appreciate financial risks and opportunities to make informed choices, to know where to go for help and to take other effective actions to improve their financial well-being.(OECD)
When I was paging through the said letter, I stumbled upon a very good letter that teaches about how to save and keep excess money in reserve. With this letter one can learn the power of saving and financial independence. This was the letter written to Uncle Sam Buffet from dad on how to save for stormy days. Uncle Sam is Warren’s dear uncle.
I believe that this letter contains a lesson or two that can lead one to financial independence. Click the link below to read the letter.
On an unrelated chain of events, how true is that Osama Bin Laden has been killed?