Warren Buffett

Warren Buffett

Last Update: 08-27-2015

Number of Stocks: 49
Number of New Stocks: 1

Total Value: $107,071 Mil
Q/Q Turnover: 1%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Warren Buffett Watch

  • Investing For The Long Haul – JRW Commentary July 2015

    Earnings season has been in full swing over the last few weeks as corporate officers kneel before the analyst community and lay bare the fortune or misfortune that has befallen their firms over the previous three months. Company reports usher in a period of volatility in the stock market as market participants make their feelings known through aggressive buying or selling shares in response to what the company has to say. This volatility in response to incredibly short periods of performance has caused me to reflect on the long-term nature of our investing philosophy.

    I find it remarkable how short-term oriented many market participants are in practice. This goes for investment professionals as well as clients and other individuals who have money invested in financial securities. There seems to be an overwhelming desire to do something at all times. I believe this mindset has deleterious effects on long-term portfolio returns.


  • Think Twice Before Following Warren Buffett Into Phillips 66

    Berkshire Hathaway has disclosed a $4.5 billion stake in Phillips 66 (NYSE:PSX). Phillips 66 is organized into four operating segments: Midstream, Chemicals, Refining, and Marketing & Specialities. It might turn out to be a great investment, but before you piggyback off Buffett, I urge readers to research and make independent judgements. Earlier in the year, I looked at Phillips 66 when it was selling in the mid 60’s. I passed. Obviously now that it’s $77 per share, I wish I owned some. However, any profit that I would have enjoyed would have been from dumb luck. I passed on Phillips 66 because there was no way for me to predict the crack spread or to have confidence in its future earnings.

    What is a crack spread? The technical definition of crack spread is the difference between market prices for refined petroleum products and crude oil. The most common crack spread term is the 3-2-1 crack spread which is three barrels of crude oil producing two barrels of gasoline and one barrel of diesel. For Phillips 66, their profitability is influenced by the price differential between Brent crude prices and West Texas Intermediate (WTI) prices. Phillips 66 takes crude oil and refines it into a finished product. The Energy Policy and Conservation Act of 1975 prevents U.S. oil companies from exporting most crude oils. That means U.S. refiners have access to WTI oil and international refiners don’t. As a result, when WTI is lower than Brent Crude which comes from the North Sea, U.S. refiners like Phillips 66 enjoy a cost advantage. While U.S. oil producers are restricted from exporting crude oil, refiners are allowed to export their product.


  • Understanding Fair Valuation: A Common Sense Approach to Long-Term Investing Success


    In order to understand what the intrinsic value or fair value of a common stock is, you must think like a long-term business owner and not like a stock trader. Additionally, you must think like a business owner that has no intention of selling their business. Put another way, your business generates your livelihood. Therefore, your primary focus and attention is on answering the question: how’s business?


  • 5 Investing Quotes for Recessions

    The stock market has been incredibly volatile recently. The global economy has become increasingly unstable.

    Could it be possible that we’ve reached the end of this current six-year-long bull market and are headed for another recession?


  • Long-term Contrarian / Value Investing: Turning an Oxymoron Into an Opportunity – Tocqueville Asset Management

    In my observation, there is more than one discipline that can lead to investment success, and some of the proven ones are quite different from each other. The secret to investing successfully, therefore, is to adopt and follow a discipline that is in harmony with your personality.

    For my part, I feel in total harmony with the contrarian and value disciplines that have guided my investments for 40 years. At the same time, I also claim (and aim) to be a long-term investor. Yet, almost from the start of my career, I have had the somewhat uncomfortable feeling that, in practice, these claims may be contradictory.


  • Warren Buffett by the Numbers

    Ahead of his 85th birthday Forbes has prepared a numerical walk-through of Warren Buffett's investing career.

    From buying his first publicly traded securities at age 11 to making his largest acquisition ever this month at 85 Buffett has always been all about the numbers.


  • Present-Value Analysis and the Difficulty of Forecasting Future Cash Flow

    In "Margin of Safety," Seth Klarman (Trades, Portfolio) touches upon Net Present Value and its use (or misuse) in valuation methods:

    "When future cash flows are reasonably predictable and an appropriate discount rate can be chosen, NPV analysis is one of the most accurate and precise methods of valuation. Unfortunately, future cash flows are usually uncertain, often highly so. Moreover, the choice of a discount rate can be somewhat arbitrary. These factors together typically make present-value analysis an imprecise and difficult task.


  • The Greats Talk About Fear and Opportunity in the Market

    With the recent market declines I find it very reassuring to read (again) some of the best quotes from my favorite investors, since they provide a long-term view and keep me focused on the important aspects of investing instead of getting carried away by my emotions. I have found these among others, and I share them with you hoping that you find them as useful.

    I think it is critical to re-evaluate some of the critical assumptions that we made to our investment thesis, review the estimates of intrinsic value and act upon them with objectivity and patience.


  • Volatility + Fear Is a Good Combination for Long-Term Investors

    What exactly happened Monday (Aug. 24)? Near the open, the futures were pointing to a negative start to the day but nothing too extreme. The S&P 500 was down 2-3% but the decline accelerated to near 5% at the opening bell. Stocks rallied heavily until losses were less than 1%. However, by the closing bell, stocks began to show losses again with major indices closing about 4% lower. A ride of down 5%, up 4% and then down 3% in a matter of 6.5 hours is not normal. It's no wonder that the CBOE VIX Index, nicknamed the "fear gauge," soared to levels not seen since spring of 2009 (even higher than the U.S. debt ceiling crisis in 2011). Fear was evident in the market.

    A Lehman moment


  • Warren Buffett Banks on U.S. Bancorp. Should You?

    The Oracle of Omaha Warren Buffett (TradesPortfolio) recently added to his position in U.S. Bancorp (NYSE:USB). With the likelihood of interest rates rising from all-time lows, financial stocks will benefit from this expected change in the Federal Reserve’s policy. As a result, U.S. Bancorp may be an undervalued banking stock that will see its profits rise with the increase interest rates.

    7 Steps to Successful Stock Investing


  • Cherry Coke, See's Candy and Effortful Mental Activities

    The “healthy eating habit” of Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) is no secret – both consume a significant amount of Coca-Cola (NYSE:KO) and See’s Candy’s peanut brittle every day. Given the amount of sugar they consume every day, the fact that both are still very healthy and sharp at their respective ages may befuddle many nutritionists. I’m not a health nut myself, but I have always wondered whether there is something about Coke and peanut brittle that get two of the most rational human beings on earth hooked.

    I found a speculative and interesting answer in Chapter 3 of the great book "Thinking, Fast and Slow."


  • Lessons From the 1957 Buffett Partnership Letters

    A young Warren Buffett (Trades, Portfolio) discussed his views on the market and described the appropriate activities for money managers to follow in an overvalued environment.

    “My view of the general market level is that it is priced above intrinsic value. This view relates to blue-chip securities. This view, if accurate, carries with it the possibility of a substantial decline in all stock prices, both undervalued and otherwise. In any event I think the probability is very slight that the current market levels will be thought as cheap five years from now. Even a full-scale bear market, however, should not hurt the market value of our workouts substantially.


  • Walmart: One of Berkshire Hathaway’s Top 5 Is Still a Worthwhile Investment

    Walmart (NYSE:WMT), the world’s largest retailer, has dropped 20% since February when it was announced they were raising the minimum wage for their employees. Investors who are already worried about the razor-thin margins were concerned this would hurt the languishing retailer even more. However, recent developments may prove Walmart is still an attractive investment.

    Recent developments


  • Inside the Brain of an Investing Genius

    Those readers who have frequented my Investing Caffeine site are familiar with the numerous profiles on professional investors of both current and prior periods (See Profiles). Many of the individuals described have a tremendous track record of success, while others have a tremendous ability of making outrageous forecasts. I have covered both. Regardless, much can be learned from the successes and failures by mirroring the behavior of the greats – like modeling your golf swing after Tiger Woods (O.K., since Tiger is out of favor right now, let’s say Jordan Spieth). My investment swing borrows techniques and tips from many great investors, but Peter Lynch (ex-Fidelity fund manager), probably more than any icon, has had the most influence on my investing philosophy and career as any investor. His breadth of knowledge and versatility across styles has allowed him to compile a record that few, if any, could match – outside perhaps the great Warren Buffett (Trades, Portfolio).

    Consider that Lynch’s Magellan fund averaged +29% per year from 1977 – 1990 (almost doubling the return of the S&P 500 index for that period). In 1977, the obscure Magellan Fund started with about $20 million, and by his retirement the fund grew to approximately $14 billion (700x’s larger). Cynics believed that Magellan was too big to adequately perform at $1, $2, $3, $5 and then $10 billion, but Lynch ultimately silenced the critics. Despite the fund’s gargantuan size, over the final five years of Lynch’s tenure, Magellan outperformed 99.5% of all other funds, according to Barron’s. How did Magellan investors fare in the period under Lynch’s watch? A $10,000 investment initiated when he took the helm would have grown to roughly $280,000 (+2,700%) by the day he retired. Not too shabby.  

  • Does Berkshire Hathway Make the Cut as a 'Retirement Stock'?

    Warren Buffett has made his investors a lot of money over his career. Over the past 35 years, Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) has grown its book value at a compounded rate of return of 19.0%. Over that same period, the S&P 500 has generated total returns of only 11.8%. For a manager as large and as closely followed as Buffett, those returns, spread out over three and a half decades, are nothing short of amazing.

    Buffett has evolved over the years, moving from a deep value “cigar butt” investor into one that buys great businesses at reasonable prices. He also transformed Berkshire Hathaway twice: First from a textile mill into a diversified insurance company and then into the vast conglomerate. But while no one questions Buffett’s investment acumen or his ability to transform both himself and his company, whether or not Berkshire Hathaway makes the grade as a retirement stock is another question entirely.


  • It Can Be Good to Have a Job You Don't Like

    That’s right.

    I’m glad I had a job that I hated.


  • Warren Buffett Sells Viacom and Buys Charter in the Second Quarter

    In the second quarter Warren Buffett (Trades, Portfolio) increasingly bet on Charter Communications (NASDAQ:CHTR) in the media industry while reducing his stake in Viacom (NASDAQ:VIAB). During the quarter Buffett bought approximately $456 million worth of stock in Charter and decreased his portfolio share of Viacom by approximately $250 million. After his second quarter trades Buffett’s portfolio allocation to the media industry was 5.21%.

    Charter has been a media stock in the spotlight recently for its merger with Time Warner Cable (NYSE:TWC). The merger attempt announced on May 26 follows an attempt by Comcast which was ended in April 2015. While the previous attempt was ended due to opposition and lack of support many industry speculators believe the Federal Communications Commission will more greatly favor the Charter-Time Warner Cable merger because of the competition it promotes in the industry and the service benefits it provides to consumers.


  • Seeking Disconfirming Evidence in Investing Research

    “And one of the great things to learn from Darwin is the value of extreme objectivity. He tried to disconfirm his ideas as soon as he got ’em. He quickly put down in his notebook anything that disconfirmed a much-loved idea. He especially sought out such things. Well, if you keep doing that over time, you get to be a perfectly marvelous thinker instead of one more klutz repeatedly demonstrating first-conclusion bias”


  • Berkshire Hathaway Sells Oil, Buys 1 New Stock in Second Quarter

    Friday, Buffett reported he and his two portfolio managers, Ted Weschler and Todd Combs, bought one new holding and added to only two others in the second three months of the year, before the acquisition of Precision Castparts (NYSE:PCP).

    They also only sold out of two stocks, which were both oil: Phillips 66 (NYSE:PSX) and National Oilwell Varco (NYSE:NOV).


  • Too Much Reading, Not Enough Thinking?

    We read a lot. I don't know anyone who's wise who doesn't read a lot. But that's not enough: You have to have a temperament to grab ideas and do sensible things.


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User Comments

ReplyRakesh54 - 4 weeks ago
Very helful artical. i really enjoying while reading this artical. thank you so much for share with us.
Veny nice i am really helpfull with this.
Thank you again for share with us.
ReplyTheda.berdeaux - 3 months ago
These articles do not match up to the Guru"s List:


This is ntroublesom.

ReplyBenfica457 - 3 months ago
You Need to Update Warrens New Buys the info is really old and not up to date
ReplyRobsones - 7 months ago
Hi Gurufocus,
When are you updating each gurus buys and sells since 11/14/14 when it was last updated?
ReplyPurmer - 8 months ago
Just buy Berkshire Hathway and relax for the rest of your live. Don,t outsmart Buffet
ReplyDusty506 - 9 months ago
Correction.. that's operating cash flow divided by shares outstanding. then divide that by earnings per share
ReplyDusty506 - 9 months ago
[email protected],
try price to operating cash value. and then compare that ratio to price to earnings . I found wells fargo and davita to have the highest of any stocks I've fooled around with. wells is 2.72 and davita is 2.44. also enr is 3.01. They're competitors of Duracell. still just experimenting
ReplyGurufocus - 10 months ago
@Rdonehow: List those with share number changes of more than 20%, or impact to portfolio more than 0.1%.
ReplyRdonehow - 10 months ago
Same question as Jimmyjam.
ReplyRdonehow - 10 months ago
I have the same question.
ReplyJimmyjam - 1 year ago
Berkshire buys 3M shares of GM, a 10% increase. Why not listed in latest stock picks?
ReplyAnurag.mital@facebook - 1 year ago
there are a lot bad data on the web site
Manfred Bognar
ReplyManfred Bognar - 1 year ago

... and is not fixed yet!
ReplyJandup - 1 year ago
Why is the dividend reported on Gurufocus for AAPL much higher than other sources. Is it correct?
ReplyHamed.dadgour@yahoo - 1 year ago
Hi Gurufocus,

Thank you for your amazing website. I have one comment:
the stock price for LBTYA seems wrong because you website has not taken into account the fact that there was a stock split back in Feb 2014. You show the stock is down more than 50%, which is misleading.

ReplyFofofum@yahoo - 1 year ago
y should they show anybody Buffetts portfolio in the first place, show the world your up to date portfolio how about it. If you need help maybe you should learn and study your own picks and not get em off somebody elses coattails, sorry but you asked the question, anyway as you can see he only buys the best of the best stocks, you don't have to look at his portfolio to know that,goodluck!
ReplyVicvic - 1 year ago
ReplyGurufocus - 1 year ago
"Do we know if the DirecTV sell listed on this page is correct? The sell is not listed under the "Stock Picks" tab."

Yes, it is correct! The impact to portfolio is very small so we did not list under "Stock Picks" tab.
ReplyCulpel - 1 year ago
Dear Gurufocus,

Do we know if the DirecTV sell listed on this page is correct? The sell is not listed under the "Stock Picks" tab.

Thank you,

Buy land
ReplyBuy land - 1 year ago
Why does the chart show that DVA has different current prices? Any ideas?
ReplyLacatena - 1 year ago
Why was XOM not marked as new buy (30th September) in the stock picks in the Portfolio of Mr. Buffett ? It appear only today the 18th November ?

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