Warren Buffett 2007 Letter to Shareholder

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CNBC's Buffett Watch Warren Buffett's Letter to Shareholders: Don't Expect Double-Digit Stock Gains Over Long Run posted some of the highlight of Warren Buffett annual letter to shareholders.

Warren Buffett points out that the Dow's annual compounded gain was 5.3 percent in the 20th century. To match that rate in the 21st century, the Dow would need to close around 2 million at the end of 2099. He also said that anyone expecting a 10 percent annual gains from stocks this century are "implicitly forecasting a level of about 24,000,000 on the Dow by 2100." He warns, "Beware the glib helper who fills your head with fantasies while he fills his pockets with fees." Warren Buffett has recommended stock index mutual funds for many investors.

Warren Buffett also says that during the past year, Berkshire identified four people who could take over the separate job of managing Berkshire's investments. He says all four had “Manage substantial sums currently”,” Indicated a strong interest in coming to Berkshire if called", Are "young to middle-aged", Are "well-to-do to rich" and "Wish to work for Berkshire for reasons that go beyond compensation".

CNBC's Buffett watch also highlight thing Warren Buffett mention in his letter to shareholders. In HIGHLIGHTS FROM BUFFETT'S LETTER TO SHAREHOLDERS there are highlights of the letter.

Special thanks to CNBC's Buffett Watch for sharing the information about Warren Buffett Letter to Shareholder.