Tuesday, September 16, 2008

Very smart people do very dumb things

Somehow, the satisfaction of linking to my post from March 2006 doesn't make up for the impact of this financial hurricane. From the same Berkshire Hathaway 2005 Annual Report, p.11:
It could be a different story for others in the future. Imagine, if you will, one or more firms (troubles often spread) with positions that are many multiples of ours attempting to liquidate in chaotic markets and under extreme, and well-publicized, pressures. This is a scenario to which much attention should be given now rather than after the fact. The time to have considered – and improved – the reliability of New Orleans’ levees was before Katrina.
Buffett warned us in 2003, few listened.


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