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

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

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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




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 (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.

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Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$33,706.74 (-0.86%) $-292.30
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
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Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
$447,154.99 (-2.24%) $-10,245.02
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
$297.28 (-2.30%) $-6.99

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