Warren E. Buffett 's Letter

Mr. Buffett released his annual letter on Feb 27,1009 to Berkshire Hathaway Inc and said the economic turmoil that contributed to a 62 per cent profit drop last year at the holding company he controls is certain to continue in 2009, but the revered investor remains optimistic.

"Though the path has not been smooth, our economic system has worked extraordinarily well over time," Mr. Buffett wrote. "It has unleashed human potential as no other system has, and it will continue to do so. America's best days lie ahead."

Mr. Buffett said he made at least one major investing mistake last year by buying a large amount of ConocoPhillips (COP) stock when oil and gas prices were near their peak. Berkshire increased its stake in ConocoPhillips from 17.5 million shares in 2007 to 84.9 million shares at the end of 2008. Mr. Buffett said he did not anticipate last year's dramatic fall in energy prices, so his decision cost Berkshire shareholders several billion dollars.

Mr. Buffett says he also spent $244-million on stock in two Irish banks that appeared cheap. But since then, he's had to write down the value of those purchases to $27-million.

Berkshire owns a diverse mix of more than 60 companies, including insurance, furniture, carpet, jewellery, restaurants and utility businesses. And it has major investments in such companies as Wells Fargo & Co. and Coca-Cola Co.