Warren Buffett

Warren Buffett

Last Update: 05-15-2015

Number of Stocks: 47
Number of New Stocks: 0

Total Value: $107,133 Mil
Q/Q Turnover: 1%

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

Warren Buffett Watch

  • GoodHaven Fund Semiannual Letter For 2015

    GoodHaven Fund semiannual report for the period ending May 31, 2015.


    GoodHaven Fund

      


  • Berkshire's GEICO Investment: "Bet Big" (Part 2)

    (This article picks up where I left off last time; see part one here)


    “It’s not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it who look and sift the world for a mispriced bet that they can occasionally find one. And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple.”

      


  • Gabelli ABC Fund Second Quarter Letter

    Gabelli ABC Fund commentary for the second quarter ended June 30, 2015.


      


  • Berkshire Hathaway's $2 Billion Stake in AT&T

    On July 24, 2015, AT&T (NYSE:T) completed its $49 billion acquisition of DirecTV (NASDAQ:DTV). Under the terms of the merger, DirecTV shareholders received 1.892 shares of AT&T common stock and $28.50 in cash, per share of DirecTV. Since Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) owned 31.4 million shares of DirecTV as of March 31, 2015, that holding converts into 59.4 million shares of AT&T valued at approximately $2 billion at AT&T’s closing price of $34.29 on July 24. In addition, Berkshire Hathaway receives approximately $900 million in cash. Each share of DirecTV is, therefore, being valued at $93.38.


    In his 2012 letter to shareholders, Warren Buffett (Trades, Portfolio) said that DirecTV was a combined purchase of Todd Combs and Ted Weschler. When this deal was announced in May 2014, Messrs. Combs and Weschler issued a joint statement: “This is a terrific transaction for all involved: Enhanced choice for consumers, coupled with increased value for both AT&T and DirecTV shareholders – a natural.” The two portfolio managers built Berkshire’s stake in DirecTV beginning in 2011 at an average cost of about $60 per share.

      


  • Berkshire's GEICO Investment in 1976 and 1980: Lessons in Business and Investing

    I wrote an article about GEICO last November (here), but I haven’t talked too much about the company since then. In that article, I discussed some of the amazing results GEICO has reported since becoming a wholly-owned subsidiary of Berkshire Hathaway (BRK.B) two decades ago. The research I completed in preparation for writing that article left me with the impression that GEICO was one of the best businesses I had ever seen. They have a sustainable competitive advantage, and the moat has widened over time.


    This has allowed GEICO to slowly but surely take market share, moving from outside the top five in private passenger auto insurance in the U.S. to second over the past two decades; they’ve been wildly profitable as well, with a ~92% combined ratio (on average) over the past decade.

      


  • Charlie Munger's Ten Rules For Investment Success

    Charlie Munger (Trades, Portfolio), vice chairman of Berkshire Hathaway (BRK.A)(BRK.B), is a legendary investor who few value investors follow like Warren Buffett (Trades, Portfolio). Buffett has a cult following in the investment world. There are numorous articles written about him and his investing philosophy, yet very little is written about Munger, despite the fact Buffett has said Munger had a massive effect on him to move away from Graham classic value investing into a hybrid value and growth investing. As Buffett has inspired us through his simple investment philosophy, Charlie is the man who changed the investment method of the Oracle of Omaha. Munger is the inventor of modern day value investing that looks for franchise companies selling at fair value and growing at above average levels. Mr. Munger has always been a independent thinker who didn't think twice on rethinking Graham's net net investment strategy. He doesn't think twice to pay up for a wonderful company with a franchise.


    Charlie Munger (Trades, Portfolio) Investment Philosophy:

      


  • The Power of Words - Part I


    If all my possessions and powers were taken from me with one exception, I would choose to keep the power of words, because by them I would recover the rest.

      


  • Warren Buffett: How I Look At Life and Business

    Warren Buffett (Trades, Portfolio) was interviewed by Jeff Cunningham Iconic Voices and a video has been made available here. Here are excerpts of some answers that I have found to be quite insightful and useful for investors.


    Q: How do you keep up with all the media and information that goes on in our crazy world?

      


  • Are You Playing Defense in This Market?

    Ouch. That’s how I felt in 2008 when my portfolio was down 28.6%.


    The S&P was down 37% that year but I certainly didn’t care about having beaten the market.

      


  • Learning from Charlie Munger and Warren Buffett’s Mistakes

    It is well known that one of Warren Buffett (Trades, Portfolio)’s largest mistakes was actually purchasing Berkshire Hathaway. In his letter to shareholders, he has shared the lessons learned from this experience so that we can, as Charlie Munger (Trades, Portfolio) says, learn vicariously.


    On Investing More Capital to Achieve Terrible Returns

      


  • The Insurance Sector Is In A Sweet Spot for Investors Right Now

    The Greeks can give assurances that they will repay their debts once the current ones are forgiven. The EZ’s troika can give assurances that they will stand firm. And Putin can give assurances that there are no Russian troops in eastern Ukraine and all those mothers losing their sons are losing them to “training accidents” deep in Mother Russia. Assurances are a dime a dozen.


    But insurance — that’s something that is real. Every now and then, the insurance industry is at the sweet spot of claims, premiums and interest rates. I believe we are at one of those times.

      


  • Warren Buffett, Bill and Melinda Gates Join Charlie Rose To Discuss The Giving Pledge

    What introduction is necessary?


    Bill Gates (Trades, Portfolio) and his wife Melinda join Charlie Rose to discuss how the "Giving Pledge" was born. The pledge, of course, is a commitment by wealthly members of society to give almost all of their net worth back to help others when they pass away.

      


  • What Value Investor Chuck De Lardemelle Learned From Warren Buffett's Purchase Of Burlington Northern

    Warren Buffett (Trades, Portfolio) was the subject of a lot of second guessing when he bought Burlington Northern.


    Time has once again proven Buffett to be right. For years, Buffett hated the railroad business. What changed is that Buffett figured out that the consolidation of the industry had raised pricing power and that there was tremendous opportunity to get a good return.

      


  • The Next Target 3G And Warren Buffet Could Team Up For

    PepsiCo (NYSE:PEP) is best known as the competitor to Coca-Cola (NYSE:KO). The two giants effectively have the market for black gold (the other black gold) split between them. In addition Pepsi manufactures and sells salty and sweet snacks. Brands include: Pepsi, Mountain Dew, Gatorade, Tropicana, Lay's, Doritos, and Quaker. The food unit makes up 50% of revenue and the company derives approximately 50% from the U.S. Pepsi’s salty snacks have a large market share which is providing the company with a strong competitive advantage through scale. Back in the 60’s in the so-called conglomerate era, you may remember Teledyne, Pepsi merged with Frito-Lay. The combination has survived changing preferences among investors so far. Today, conglomerates are not popular. Buffett refers to the practice as empire building and diworsification, while academic theory also takes a dim view of the practice. Activists work 24/7 to break up stalwarts left and right and sometimes the initiative even comes from within.


    Financial strength

      


  • Goldman Sachs´Q2 Profit Slumped by Half on Legal Costs

    Goldman Sachs Group Inc (NYSE:GS) earned $1.98 a share in the second-quarter on revenue of $9.07 billion, compared to $4.10 a share on revenue of $9.12 billion. Earnings missed analysts’ expectations of $3.85 a share.


    The bank would have posted earnings of $4.75 a share, but it has recorded some expenses, on its book is reflected a $1.45 billion charge for mortgage-related litigation and regulatory matters, which reduced earnings by $2.77 a share.

      


  • The Beauty of Operating Leverage

    In February of last year, I wrote an article called “The Peril of Operating Leverage.” In it, I said that simply put, a company with a high degree of operating leverage will suffer more rapidly declining operating income when revenues decline. Conversely, when revenues improve, the company’s operating income will increase more. Naturally this applies more to companies with high fixed costs than to companies with high variable costs, as the latter can cut costs (variable) more easily when revenue declines. The peril of operating leverage, unbeknownst to those investors who got caught off guard by the magnitude of decline in earnings power, should have played a vital role in the security analysis process.


    The inverse of operating is also true - I’ll call it the beauty of operating leverage. The math is so beautiful and it mathematically illustrates why moats such as pricing power, advantage of scale and share buybacks work so well for wonderful businesses.

      


  • The Stellar Kraft Heinz Board of Directors

    On July 6, 2015, shares of Kraft Heinz (NASDAQ:KHC) began trading. This company, representing the merger of Kraft Foods Group and H.J. Heinz, is currently valued at about $100 billion at its closing price of $77.31 on July 10. Berkshire Hathaway (BRK.A, BRK.B) owns about 325 million shares, which represents approximately one quarter of the company, and is valued at $25 billion. Kraft Heinz is now Berkshire’s second-largest investment behind only Wells Fargo (NYSE:WFC) with a current market value of $26 billion. 3G Capital also owns about one quarter of the company.


    The board of directors of Kraft Heinz consists of 11 members. Three of the members were selected by Berkshire Hathaway, three by 3G Capital, and the remaining five by Kraft Foods.

      


  • Companies That Sell For Less Than Their Graham Numbers

    Benjamin Graham is the father of value investing who, through his teachings, created an investment philosophy that has lasted over 75 years. He wrote two of the greatest investment books ever written, "The Intelligent Investor" and "Security Analyst." Some of the greatest and most profitable investment managers are students of Graham and his airs like Warren Buffett (Trades, Portfolio). Value Investing has changed from what Graham originally created, having evolving into a investment philosophy that values a business on far more than its assets. Today some investors seek out classic Graham Net Asset Stocks and other seek-out franchise companies like Coca-Cola (NYSE:KO) selling for less than estimated business value. The value investing philosophy is simple your not buying a piece of paper your buy a stake in a business. This changes the way think when you making investments causing to ask how much I'm I will to pay for a percentage of this company's earnings, cash flow, etc.


    Graham Number

      


  • Are We Missing a Part of the U.S. Labor Force?

    One of the indications that something may be amiss in the U.S. economy shows up as a dip in its labor force participation rate. GuruFocus noted that in its “Economic Data” (http://www.gurufocus.com/economic_indicators/13/civilian-employment-percentage-of-population) when it showed that there has been a drop in the employment participation ratio since 2000. As a consequence there was a gap between what was the historical trend of employees supporting the GNP and people who are not working.


    Warren Buffett pointed out that there is a relationship between the total market cap of the U.S. stock market and the U.S. GNP. Buffett said the growth in the GNP is “…probably the best single measure of where market valuations will stand at any given moment” (http://www.gurufocus.com/stock-market-valuations.php). Investors must therefore pay attention to the ratio of the total workforce participation rate as a % of the total population whenever a deviating from past trends is taking place.

      


  • John Rogers' Ariel Funds June Commentary

    Last month, we studied year-to-date returns, and this month, we will comment on year-to-date flows. We see returns and flows as two different tools for measuring investment sentiment and think using them in combination is superior to depending solely on one. Recall that in examining U.S. stock returns last month, we noted returns were positive across the board, with growth outperforming value. To us that suggests optimism and an embracing of risk for U.S. equity investors.


    We now turn to asset flows in mutual funds. Last year when we examined 56 categories in the taxable bond, U.S. equity and international equity groups, we saw a fairly clear picture. Investors were hunting for yield, especially in bonds, and seeking safety in equity categories. They were avoiding growth fare and aggressive international investments. All in, we saw broad caution in the first half of 2014. The picture is different and a bit more cloudy this year.

      


  • Where’s Warren on Chubb Corp?

    The conspicuously dressed children’s book character, Waldo, who dons a striped shirt and hat is hard to miss, unless he’s in strange places or bizarre geographic settings. Similarly, Warren Buffett (Trades, Portfolio) is often hard to miss. Yet every now and then, some bizarre market event happens and we must ask, where’s Warren?


    Ace Limited recently announced the acquisition of one of our portfolio holdings, Chubb Corporation (NYSE:CB), for $62.93 in cash and 0.6 shares of Ace common stock. Chubb is one of the most admired property and casualty insurance companies in the U.S. They have been a very quiet company, making very little attempt to woo the investment community or be a major advertiser of their business. In other words, they were a public company which behaved very much like a privately-owned business—a favored attribute of Berkshire Hathaway (NYSE:BRK.B). As owners of both companies, we think it’s fair to ask: Where’s Warren?

      


  • The Perfect Retail Business Model


    "The company that doesn’t pioneer doesn’t take chances and merely goes along with the crowd is liable to prove a rather mediocre investment in this highly competitive age." – Philip Fisher

      


  • Your Essential Guide to Walter Schloss Investing

    “Basically we like to buy stocks which we feel are under-valued, and then we have to have the guts to buy more when they go down. And that’s really the history of Ben graham. That’s it.”


    Who do you look up to when it comes to investing?

      


  • Guru Stocks at 52-Week Lows: XOM, WMT, PG, CVX, BHP

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Exxon Mobil Corporation reached the 52-week low of $83.14

      


  • ACI Partnership Fund: A Needle in the Haystack

    "While there are some Warren Buffett in the world, identifying one is like finding a needle in the haystack", Burton Malkiel, Economist, Princeton University.


    Mr. Malkiel was probably not too far from reality, as very few individuals have been able to outperform the market over time. However, he probably didn’t know about GuruFocus.com, which follows the best investors, those with proven track records and who usually outperform the market in the long term.

      


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User Comments

Theda.berdeaux
ReplyTheda.berdeaux - 2 months ago
These articles do not match up to the Guru"s List:

http://www.gurufocus.com/commentary.php?GuruName=Warren+Buffett

This is ntroublesom.

T
Benfica457
ReplyBenfica457 - 2 months ago
You Need to Update Warrens New Buys the info is really old and not up to date
Robsones
ReplyRobsones - 6 months ago
Hi Gurufocus,
When are you updating each gurus buys and sells since 11/14/14 when it was last updated?
Purmer
ReplyPurmer - 7 months ago
Just buy Berkshire Hathway and relax for the rest of your live. Don,t outsmart Buffet
Dusty506
ReplyDusty506 - 8 months ago
Correction.. that's operating cash flow divided by shares outstanding. then divide that by earnings per share
Dusty506
ReplyDusty506 - 8 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
Gurufocus
ReplyGurufocus - 9 months ago
@Rdonehow: List those with share number changes of more than 20%, or impact to portfolio more than 0.1%.
Rdonehow
ReplyRdonehow - 9 months ago
Same question as Jimmyjam.
Rdonehow
ReplyRdonehow - 9 months ago
I have the same question.
Jimmyjam
ReplyJimmyjam - 11 months ago
Berkshire buys 3M shares of GM, a 10% increase. Why not listed in latest stock picks?
Anurag.mital@facebook
ReplyAnurag.mital@facebook - 1 year ago
there are a lot bad data on the web site
Manfred Bognar
ReplyManfred Bognar - 1 year ago
Hamed.dadgour@yahoo,

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

Hamed
Fofofum@yahoo
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!
Vicvic
ReplyVicvic - 1 year ago
WHY CAN'TE WE.....TH GET A CURRENT LIST INSTEAD OF ONE THAT IS 6 MONTHS OLD? HE REPORTS HIS PURCHASES WITHIN A FEW DAYS.THANKS...
Gurufocus
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.
Culpel
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,

Reid
Buy land
ReplyBuy land - 1 year ago
Why does the chart show that DVA has different current prices? Any ideas?
Lacatena
ReplyLacatena - 1 year ago
Question:
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 ?
Thanks
Francesco



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