Dimon and the Letter

Most of what I've know has come as a result of 'hop' reading, which essentially means reading something, finding something interesting and hoping on to read about this something interesting. So when Warren Buffett at the AGM recommended Jamie Dimon's letter, I had to read it! Needless to say it is a wonderful letter. I second Tom Brown when he says this is the type of stuff we expect from Warren Buffett (the AGM fills in some holes). It is a must read..

It is becoming apparent that an equity investor doesn't just need a good understanding of the industry but also needs to comprehend the credit markets and value the political risks. WB famously said that even if Alan Greenspan (the then fed chairman) told him what his next move will be, it will not effect how WB invests. This makes sense because as value investors we look for under priced securities with a margin of safety and it is as simple as that. But on the other hand, I reckon, some awareness of the macro conditions is an absolute must and being 'street smart' important. JPM shareholder's letters gives a good summary of past mistakes, present challenges and a recommendation (not just a complain) on future reform.