Warren Buffett

Warren Buffett

Last Update: 05-03-2016

Number of Stocks: 48
Number of New Stocks: 1

Total Value: $131,856 Mil
Q/Q Turnover: 1%

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

Warren Buffett Watch

  • Marks: Ignoring Cycles Is the Most Dangerous Thing Investors Can Do


    “I think it’s essential to remember that just about everything is cyclical. There’s little I’m certain of, but these things are true: Cycles always prevail eventually. Nothing goes in one direction forever. Trees don’t grow to the sky. Few things go to zero. And there's little that’s as dangerous for investor health as insistence on extrapolating today’s events into the future.”

      


  • Ackman Defends Valeant From Buffett, Munger Criticism

    Pershing Square CEO Bill Ackman (Trades, Portfolio) appeared on CNBC Monday to defend against the latest criticism of Valeant Pharmaceuticals (NYSE:VRX), this time from the most well-known value investors themselves, Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio).


    On Saturday at Berkshire Hathaway’s (NYSE:BRK.A) (NYSE:BRK.B) annual shareholder meeting, Munger referred to Valeant as a “sewer” in what will likely be a widely cited quote for the next few months. Speaking with Becky Quick on CNBC, Munger, who serves as chairman of the Good Samaritan Hospital in Los Angeles, said Valeant’s business practices have been “robbing” hospitals, for example by raising prices of a heart drug by 100%. Munger had scathing words for outgoing CEO Michael Pearson’s response to the controversy.

      


  • Weekend in Nebraska Well Worth the Trip

    This past weekend, I was lucky enough to attend my fifth Berkshire Hathaway (BRK.A, BRK.B) shareholder meeting in Omaha. I wrote an article after last year’s meeting that got a decent response from readers so I figured I’d discuss some of the highlights from this time around.


    My weekend started Thursday at the GuruFocus Conference with a presentation by Don Yacktman of Yacktman Asset Management. I’ve always been a fan of Yacktman because his approach to investing resonates with me (to put it succinctly, great companies at reasonable valuations). He often uses the analogy of a beach ball being submerged in rising water: With intrinsic value consistently moving higher over time, stable market prices are simply building in substantial catchup returns when the ball ultimately comes back to the surface.

      


  • Quarterly 'Guess What Warren Buffett Bought' Contest

    Buffett will disclose his first-quarter buys and sells in two weeks, after unloading his up-to-date investing thoughts and witticisms for a sea of shareholders and a livestreamed audience last weekend at the Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) meeting in Omaha.


    Whether you heard the meeting or not, you can guess which stocks Warren Buffett (Trades, Portfolio) bought in the first quarter by entering three stocks in the comment section below, along with a brief explanation of why. We'll send the top three winners an investing book of their choice from Amazon!

      


  • 107 Profound Warren Buffett Quotes: Learn To Build Wealth

    This article contains 107 Warren Buffett (Trades, Portfolio) quotes to teach you to build wealth and become a better investor.

    Warren Buffett (Trades, Portfolio), chairman and CEO of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) is arguably the greatest investor of all time.  


  • U.S. Market Indexes Start Month Higher

    U.S. market indexes finished the first trading day of May higher.


    The Dow Jones Industrial Average closed at 17,891.16 for a gain of 117.52 points or 0.66%. The Standard & Poor's 500 Index closed at 2,081.43 for a gain of 16.13 points or 0.78%. Market indexes recovered some of their losses from last week after market valuations descended following no change from the Bank of Japan on interest rates, broadly lower earnings results and a gross domestic product report for the U.S. that showed a first-quarter growth rate of 0.5%.

      


  • Rockwell Automation Is a Classic Buffett Style Investment

    One of the stocks we are considering adding to our portfolio is Rockwell Automation (NYSE:ROK). The company is a leader in industrial automation technology and we believe it will play a critical role in the global economy going forward and the typical Warren Buffett (Trades, Portfolio) style good company at a good price. The company is attractive to both dividend investors with a yield of over 2.5% as of this writing and for investors looking for capital appreciation.


    The key investment thesis for Rockwell Automation revolves around the cost and availability of labor around the globe and the role automation will play in the coming decades. The two graphs below show the unit labor cost in a variety of low wage countries and in China (the particular graph shows China versus Mexico).

      


  • Best Moments From Buffett's Annual Berkshire Shareholder Meeting

    Question: In a 1987 letter to shareholders, you comment on the type of companies Berkshire (NYSE:BRK.A)(NYSE:BRK.B) likes to buy. Today the company has changed the strategy. Now it invests in companies with tons of capital expenditures and lower returns on equity. Why?


    Buffett: The ideal business is the kind that takes no capital and grows. We own some. It does hurt us in terms of compounding earnings growth.

      


  • Buffett: American Express Stock Buybacks a Smart Decision

    Warren Buffett (Trades, Portfolio) spoke with Becky Quick on CNBC's Squawk Box Monday morning two days after Berkshire Hathaway's (NYSE:BRK.A) (NYSE:BRK.B) annual shareholder meeting in Omaha, touching on topics such as first quarter GDP growth and his sell philosophy.


    Though the U.S. GDP grew just 0.5% during the first quarter, which Quick called a "stunningly bad" figure, Buffett said that overall, the U.S. has recovered well since the crisis.

      


  • Superinvestors of Benjamin Graham

    Benjamin Graham‘s influence on the investment industry paved the way for a group of aspiring investors to become “superinvestors.” Warren Buffett (Trades, Portfolio) discussed the success of Graham’s superinvestors in a 1984 speech titled, “The Superinvestors of Graham and Doddsville.“


    Columbia Business School

      


  • My 1st Trip to Omaha for the Berkshire Hathaway Shareholders Meeting

    Saturday, April 30 was a day that I will never forget as it started with waiting outside the CenturyLink Center in Omaha, Nebraska, with thousands of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) shareholders holding umbrellas over their heads in an effort to stay dry from a downpour.


    The doors opened at 6:20 a.m., and my friend Chris and I, as well as thousands of Berkshire Hathaway shareholders, entered the CenturyLink Center walking through security checks and metal detectors before arriving at our seats. As I sat down I saw that guru Mario Gabelli (Trades, Portfolio) was in attendance as well as the founder of Microsoft (MSFT), Bill Gates (Trades, Portfolio).

      


  • The 3 Most Important Words in Investing

    On Margin of Safety


    Margin of Safety, a concept put forth by Benjamin Graham, has been central to the value investing philosophy for quite a while now. So much so the great Warren Buffett (Trades, Portfolio) said margin of safety may be the most important words in investing. So what exactly does the phrase mean and how can you use the idea to your advantage as an individual investor?

      


  • Gabelli Speculates on Buffett’s Next Elephant


    In an interesting episode of Squawkbox Mario Gabelli (Trades, Portfolio) highlights a couple of companies that Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett (Trades, Portfolio) might look at next. With Buffett unlikely to ever buy a defense company, Gabelli skips over that sector (although he likes several names in the industry) but instead focuses on water infrastructure:

      


  • Ask Your Questions to the Speakers for the GuruFocus Value Conference 2016

    The topics of the GuruFocus Value Conference presentations are finalized. They are listed below.


    We understand that many of you would like to go to the conference but cannot make it. We also understand that you may have questions for the speakers you would like to ask. If you do, please post them in the comment area below. We will try to ask the questions during the conference and get the answers to you.

      


  • Warren Buffett’s Top 5 Dividend-Paying Stocks

    Warren Buffett (Trades, Portfolio) may not pay a dividend at his massive company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), because he thinks he can put its earnings to better use. He likes other companies that give back to their shareholders, though. The top dividend payers in his portfolio have strong yields, including a fourth-quarter new buy, Kinder Morgan Inc. (NYSE:KMI), with the highest yield.


    The cash Warren Buffett (Trades, Portfolio)’s dividend companies pay contributes meaningfully to Berkshire’s bottom line. In his quarterly report, he records only their dividends as earnings. Last year, this totaled $1.8 compared to their total earnings of $4.7 billion.

      


  • Former Warren Buffett Replacement Candidate David Sokol Turns Activist Investor

    David Sokol, the former executive at Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) rumored as the pick to replace Warren Buffett (Trades, Portfolio), has returned to the investing stage making demands at a bank in which he has a large stake, Middleburg Financial Corp., The Wall Street Journal reported.


    Sokol resigned from Berkshire in 2011, after buying shares of Lubrizol days before suggesting to Buffett he buy the company. Sokol, who earned $24 million in 2010, netted about $3 million profit from the stock, Buffett said, calling his actions “inexplicable and inexcusable.”

      


  • On Diversification

    On Diversification​The age-old question of exactly how many stocks to hold is likely never going to be definitively answered. There are entire books, even courses, on the subject after all. Since portfolio construction is more of an art than a science, in this post I want to break down relevant studies, examine historical data and analyze some of the best investors in an attempt to come up with the optimal strategy. As always, please share your comments and thoughts below!


    Talking points

      


  • New Feature Announcement: Warren Buffett’s Owner Earnings Per Share

    In the 1986 Berkshire Hathaway shareholder letter, Warren Buffett (Trades, Portfolio) defined owner earnings as follows:


    "These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

      


  • American Express Reports Better-Than-Expected Earnings

    American Express (NYSE:AXP) is down 5.66% year to date, lagging the Dow Jones Industrial Average, which is reporting a gain of 3.20% for the year. On April 20 the company reported first-quarter earnings, beating analysts’ estimates for revenue and earnings. Revenue for the quarter was $8.1 billion beating analysts’ estimates by $110 million. Earnings per share for the quarter were $1.45, beating estimates by 10 cents.


    For the quarter American Express reported revenue growth of 2% from the first quarter of 2015 and a minimal earnings per share decrease of 2%. Given the significantly better-than-expected results, it appears the quarter could signify substantial improvements for the company that has been struggling in recent quarters with activist pressure and lost partnerships, specifically with Costco (NASDAQ:COST) and also with JetBlue (NASDAQ:JBLU).

      


  • Warren Buffett: Take a Job That You Love

    It is well-known by many investors that Warren Buffett (Trades, Portfolio) tap-dances to work every day. I believe that his remarks about enjoying what and where we work at are slightly deeper than that. During his famous 1998 speech at the University of Florida, he provided an expansion of his famous idea.


    "I get to work in a job that I love, but I have always worked at a job that I loved. I loved it just as much when I thought it was a big deal to make $1,000. I urge you to work in jobs that you love. I think you are out of your mind if you keep taking jobs that you don't like because you think it will look good in your resume. I was with a fellow at Harvard the other day who was taking me over to talk. He was 28 and he was telling me all that he had done in life, which was terrific. And then I said, "What will you do next?", "Well,", he said, "Maybe after I get my MBA I will go to work for a consulting firm because it will look good on my resume." I said, "Look, you are 28 and you have been doing all these things, you have a resume 10 times than anybody I have ever seen. Isn't that a little like saving up sex for your old age?"

      


  • 4 Football Training Tips Traders Can Apply for Success

    Cristiano Ronaldo became the most expensive footballer in history in a transfer worth €94 million when he made a move from Manchester United to Real Madrid in 2009. His contract with Real Madrid, in which he earns €21 million per year (after taxes), makes him the highest-paid footballer in the world.


    So, what makes Ronaldo so special? The simple answer is his dexterity with the ball, his confidence on and off the pitch and his ability to influence his teammates with a positive mindset.

      


  • On Value Investing

    What is value investing? What does it mean? How do you use it as a strategy? And most importantly, does it work? Consider this your entry to – or rediscovery of – the wonderful world of value investing.


    Talking points

      


  • Detecting Mr. Market’s Irrationality

    Just a couple of weeks ago apparel retailers (Gap [GPS], Buckle [BKE], etc.) flooded the newsfeeds with earnings announcements followed by last week’s big banks' earnings announcements.


    1. Big financial companies: sales growth numbers announcement. The Wall Street Journal had this informative comparison table for these big U.S. banks.

      


  • Li Lu Reflects on Getting Older

    As the chariman of Himalaya Capital Management, Li Lu has become famous for his disciplined and value-oriented approach to investing. He just turned 50 and seized the opportunity to write about some of the important lessons he has learned. He touched upon some important aspects of success and wisdom in general.


    Taking the journey

      


  • Is Faster Better at Investing?

    This weekend, an article in the New York Times stated that speed reading is not possible, according to scientific research. When we speed read, we lose a lot of the comprehension that is necessary to fully digest a text, The text mentions that the main reasons for which we are not able to speed read is that there is a small area in the retina that processes with great accuracy and whose area is very limited. More important is the fact that language processing takes time, and creates a bottleneck in terms of what we understand.


    What do great investors think of this? During the 2011 Annual Meeting with shareholders, Buffett and Munger were asked a question about speed reading.

      


  • Crossing Your Fingers: The Best Way to Identify Stocks With Competitive Advantages

    When selecting a long-term stock investment, most investors take a page out of Warren Buffett (Trades, Portfolio)’s playbook and look for companies with strong competitive advantages. History has shown that the odds of identifying such advantages are no better than the flip of a coin.


    Protecting the castle

      


  • T Rowe Price Adds to Energy and Industrial Holdings

    The T Rowe Price Equity Income Fund (Trades, Portfolio) purchased five new holdings during the first quarter, several of which were in the top-represented sectors of the portfolio — Energy and Industrials and Business Services.


    John Linehan became portfolio manager of the fund in November 2015, succeeding Brian Rogers, who retired after managing the portfolio since inception in 1985.

      


  • Ignore These 7 Questions If You Want to Lose Money

    SunEdison (SUNE) is down 92% year-to-date.


    But what the heck happened? Isn’t clean energy the future?

      


  • 10 Extraordinary Traits

    I never heard of Mark Sellers until I came across his speech to Harvard MBAs incidentally. I think this is a great read. Here is the link to the speech:


    Sellers talked about how hard it is to be a great investor, and the chance is less than 2% for a Harvard MBA and 1/50th of 1% for a non-Harvard MBA. While I don’t fully agree that a Harvard MBA is 200 times more likely to be a great investor than a non-Harvard graduate, I am with Sellers regarding the common traits of great investors.

      


  • Key Metrics: Retained Earnings to Market Value

    Introducing the key metrics series, we take a look at retained earnings to market value. I want to explain exactly what retained earnings are, what they can show us and why they can be telling of management. Then we'll analyze why Warren Buffett (Trades, Portfolio) likes to compare retained earnings growth to market value growth.


    When seeking out potential investments we're obviously looking for profitable, successful companies. After all, making profits and delivering them to shareholders should be in the top tier of a company's priorities. But a concept that's often overlooked by investors is what the company does with its profits. The retained earnings to market value metric attempts to verify that management is using profits kept from shareholders to create value, and a decent amount of value at that.

      


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