Please ensure Javascript is enabled for purposes of website accessibility

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

By Dan Dzombak - Feb 24, 2014 at 1:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Dow Jones today is up nearly 200 points, while Warren Buffett released an early excerpt from his annual letter to investors.

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 (^DJI -0.86%) 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 (^GSPC -1.29%) 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

Period

Expectations

Previous

Case-Shiller national home price index

December

13.1%

13.7%

Consumer confidence index

February

80.1

80.7

 

     

Wednesday, Feb. 26

     

New home sales

January

400,000

414,000

       

Thursday, Feb. 27

     

Durable goods orders

January

-1.5%

-4.2%

Yellen speaks before banking committee

     

Japan inflation rate

January

1.7%

1.6%

       

Friday, Feb. 28

     

GDP (1st revision)

2013 Q4

2.4%

3.2%

Univ. of Michigan consumer sentiment

February

81.8

81.2

Euro Area inflation

February

0.7%

0.8%

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 (BRK.A -2.24%) (BRK.B -2.30%) 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.

 

Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$33,706.74 (-0.86%) $-292.30
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$4,228.48 (-1.29%) $-55.26
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.A
$447,154.99 (-2.24%) $-10,245.02
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$297.28 (-2.30%) $-6.99

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.