Three noteworthy pieces are now available online and are well-worth your careful attention.
1. The annual Berkshire Hathaway Shareholders Letter from Warren Buffet is available here. As always, it is an interesting read in that Buffet is an insightful commentator on the economy and the business climate as well as (obviously) a brilliant businessman. He discusses the economy, his investments, his mistakes, and what will happen when he and his partner, Charlie Munger, as gone. From 1965-2011, BKB has averaged a 19.8 percent compound gain per year. It’s a great record (obviously).
2. The latest GMO Quarterly Letter, by Jeremy Grantham, is here. Grantham is another terrific analyst and this letter — as per usual — is well worth your time. Grantham is decidedly bearish and cautious. You aren’t likely to love what he says, but you will be better off for having read it.
3. Rick Ferri has an interesting article here suggesting that you consider altering your portfolio more closely to reflect the entire economy rather than the entire market. He suggests doing so by focusing more on public REITs and small cap value stocks to simulate the benefits of exposure to the private real estate and private equity markets. It is an interesting concept and a noteworthy read.