Warren Buffett writes an annual letter to the shareholders of Berkshire Hathaway each year. If you’ve never read them, you really ought to. They are priceless gems. Not a laugh a minute, but an interesting observation on what’s happening.

This year’s version is about 22 pages and he comments on Mark to the Market, derivatives, Bear Stearns and some of the other problems we’ve been exposed to the past year, thanks to our friends on Broad and Wall Streets. The whole piece is worth your time if you care about the markets, but I’d pay particular attention to pages 15-18.

I also found Warren Buffett’s “prediction” about the possible bubble in the Treasury market to be very interesting. You should too.

You can find it here: http://www.berkshirehathaway.com/letters/2008ltr.pdf