Dow Jones Today Soars as Warren Buffett Releases Annual Letter Excerpt Early

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up 183 points, to 16,286, at 1:30 p.m. despite the absence of real economic news. The most interesting announcement of the day is that Warren Buffett released an excerpt of his annual letter early, warning investors of the dangers of too much activity. The S&P 500 (SNPINDEX: ^GSPC  ) was up 20 points to 1,856.

There was one U.S. economic release today, the Markit flash services purchasing managers index, which didn't tell us anything we didn't already know. Namely, that the U.S. economy continues to slowly expand. Numerous reports due later this week should offer more clarity on both the U.S. and world economies.

Tuesday, Feb. 25




Case-Shiller national home price index




Consumer confidence index






Wednesday, Feb. 26


New home sales





Thursday, Feb. 27


Durable goods orders




Yellen speaks before banking committee


Japan inflation rate





Friday, Feb. 28


GDP (1st revision)

2013 Q4



Univ. of Michigan consumer sentiment




Euro Area inflation




The ones to pay attention to for the U.S. are Federal Reserve Chairwoman Janet Yellen's testimony before the Senate banking committee and the first revision to GDP. For the worldwide economy, inflation numbers for Japan and the EU are worth watching. Japan is doing all it can to wake its economy out of a two-decade deflationary spiral. Its measures seem to be working in the short term, but the government is adding to an already massive debt load which could wreak havoc down the road. In the European Union, inflation has been slowing to the point where officials are worried about deflation that would make it harder for Europe's economies to pay back their debt.

Buffett letter
The most interesting part of the day so far has been the early release of an excerpt of Berkshire Hathaway's (NYSE: BRK-A  ) (NYSE: BRK-B  ) annual letter to shareholders, which can be found here. The main message is that investors should make investment decisions as if they were buying the whole business and not just a piece of paper. Buffett also urged them to buy for the long term in order to gain from the compound growth in the value of the business, ignoring short-term fluctuations in the price.


As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

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Dan Dzombak

Dan Dzombak has written for The Motley Fool since 2008. He covers value investing, investing process, and success among other things. You can follow him on Facebook or Twitter by clicking the buttons below or head over to his blog at

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