Warren Buffett

Warren Buffett

Last Update: 11-14-2016

Number of Stocks: 50
Number of New Stocks: 3

Total Value: $128,787 Mil
Q/Q Turnover: 1%

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

Warren Buffett Watch

  • IBM Continues Strong Growth for Full-Year 2016

    On Jan. 19, International Business Machines Corp. (NYSE:IBM) reported net income of $4.5 billion and diluted earnings per share of $4.73 based on U.S. generally accepted accounting principles for fourth-quarter 2016. These values outperformed fourth-quarter 2015 values, with net income and EPS increasing 1% year over year and 3% year over year respectively. The higher net incomes resulted from higher IBM Cloud revenues.


    Brief summary of earnings report

      


  • Low-Yield Dividend Stocks Belong in Your Portfolio

    (Updated Jan. 19 by The Financial Canadian)


    As dividend growth investors, it is often easy to get caught up in the trap of "chasing yield" – investing in the highest-yielding stocks without regard to any other financial metrics.

      


  • Why Coca-Cola Is a Better Investment Than Coca-Cola European Partners

    (Published Jan. 18 by The Financial Canadian)


    Coca-Cola (NYSE:KO) is the undisputed leader in the global beverage market.

      


  • General Motors Reports Creation of 7,000 US Jobs, $1 Billion Investment

    Following criticism from President-elect Donald Trump regarding its operations in Mexico, General Motors (NYSE:GM) announced Tuesday it plans to invest $1 billion in its U.S. manufacturing operations and add thousands of new jobs.


    The automaker said it will create or retain 7,000 jobs over the next few years as part of its increased focus on overall efficiency. The plan also includes new models and plant updates. Company representatives said these plans have existed for years as part of its initiative to streamline and simplify operations while growing the business.

      


  • 4 Reasons I Prefer McDonald’s Over Shake Shack

    (Published Jan. 17 by Bob Ciura)


    Growth stocks can be fun while they’re flying high. But as the saying goes, what goes up must come down.

      


  • How to Build a Peter Lynch-Style Growth Strategy

    Next to investment legends such as Warren Buffett (Trades, Portfolio) and Carl Icahn (Trades, Portfolio), Peter Lynch falls by the wayside, but his influence on the investment world has inspired more change than possibly Buffett and Icahn put together.


    Lynch is considered to be the greatest mutual fund manager of all time. The fund he managed, Fidelity Investment's Magellan Fund, produced an average annual return of 29.2% from 1977 until 1990, almost doubling the Standard & Poor's 500’s annual yearly return of 15.8%. During this period, Lynch pioneered the growth-at-a-reasonable-price style of investing. Lynch believed that the faster a company was growing, the more investors should be willing to pay for it, which makes a lot of sense today, but before Lynch’s success, the market tended to overlook growth and value together.

      


  • Recent Declines Are Opportunity to Buy Fairfax Financial Holdings

    Shares in Warren Buffett (Trades, Portfolio)’s insurance and manufacturing conglomerate Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) have been on a staggering run over the past six months.


    Since the beginning of July 2016, the shares have added nearly 11%, outperforming the Standard & Poor's 500 by around 5.5%. Unfortunately, as the shares now trade at $161 and change, they look relatively expensive compared to the conglomerates' estimated book value of around $130, which may put some investors off.

      


  • Is Warren Buffett Wrong About Bitcoin?

    The future of the cryptocurrency industry is still clouded with doubt since Warren Buffett (Trades, Portfolio) has been one of the biggest critics of the market. Bitcoin is, by far, the leading unit in the cryptocurrency market and based on Buffett’s comments over time, it is fair to say the legendary investor does not value it at all, let alone imagine a bright future ahead.


    In 2014, just after bitcoin hit an all-time high, Buffett warned investors to stay away from it, saying it was nothing more than a mirage. In response to a question regarding cryptocurrency by Dan Gilbert, the Quicken Loans founder, he said:

      


  • Wells Fargo Misses 4th Quarter Earnings Expectations

    Wells Fargo & Co. (NYSE:WFC) reported net income of $5.3 billion and diluted earnings per share of 96 cents during fourth-quarter 2016. These values slightly underperform comparable figures during fourth-quarter 2015. Heavy losses in the company’s net hedging ineffectiveness contributed to weaker earnings performance.


    Brief summary of earnings report

      


  • Dare to Go Long on Visa

    BMO Capital Markets marked Visa (NYSE:V) as its top pick in the fintech sector last Thursday. According to Benzinga, BMO Capital sees Visa as a key beneficiary of the global secular shift from cash and checks to electronic payments and set a $99 price target for the credit services company.


    Earnings performance

      


  • Buffett and Airline Stocks

    Airline stocks took off in the third quarter last year after it emerged that billionaire investor Warren Buffett (Trades, Portfolio) had acquired stakes worth more than $1 billion in several U.S. airlines.


    Specifically, according to Berkshire Hathaway’s (BRK.A)(BRK.B) 13F SEC filing, Buffett and his lieutenants bought shares of Delta Air Lines (NYSE:DAL), American Airlines (NASDAQ:AAL) and United Continental (NYSE:UAL) at $249 million, $797 million and $238 million during the third quarter (values based on a quarter end market values). In the days after the stakes were revealed, Buffett announced that Berkshire had also acquired a position in Southwest Airlines (NYSE:LUV).

      


  • Know How Short-Term and Long-Term Debt Cycles Work

    Conventional economic “wisdom” fails to understand the role of credit/debt in our market-based system. Mainstream economics completely neglects to understand not only credit's effect on demand, but also how this credit demand fluctuates in both short- and long-term cycles.


    Now when I say cycles, don’t roll your eyes and think I’m some tinfoil hat-wearing conspiracy theorist. I don’t believe in Elliot Waves or Fibonacci or Pi or that some other hidden universal force has set us on a predetermined path of repetition – though I admit, I do look good in tinfoil.

      


  • Arnold Van Den Berg Axes 3 Positions in 4th Quarter

    Arnold Van Den Berg (Trades, Portfolio), founder of Century Management, invests in companies that trade 40% to 65% below the company’s intrinsic value. During the fourth quarter, Van Den Berg eliminated his positions in General Motors Inc. (NYSE:GM), US Bancorp (NYSE:USB) and Avid Technology Inc. (NASDAQ:AVID) as these companies have low value potential in early 2017.


    General Motors

      


  • The 10 Most Popular Stocks of Dividend Growth Bloggers

    (Published Jan. 11 by Bob Ciura)


    The Internet holds a wealth of information for investors looking for dividend stocks. Considering the many Web sites that publish articles on investing, it’s possible that every single stock has been blogged about.

      


  • Value Screeners Identify Good Opportunities for 2017

    As discussed in a previous article, value screeners can explain global market valuations and the predictability of companies. GuruFocus provides several value screeners, ranging from Ben Graham’s Net-Net screener to the Buffett-Munger Screener. However, one value screener allows you to generate customized screeners and backtest the model portfolio for the past three to 10 years: the All-in-One Guru Screener.


    As the name suggests, the All-in-One Guru Screener allows you to screen for a list of company stocks from over 150 predefined filters. The filters are conveniently organized into several tabs: fundamental, valuation ratio, profitability, growth, valuation rank, price, dividends, gurus and insiders. This article will discuss the predefined value screeners and how you can implement them using the All-in-One Guru Screener. Additionally, we will discuss which companies made the value screeners as of Jan. 5, 2017.

      


  • Harnessing Volatility in a Mid-Cap Growth Stock

    Aaron’s Inc. (NYSE:AAN) had quite a year in 2016; over the last 12 months, its share price increased by nearly 43%. Not bad for a brick-and-mortar retailer, albeit a specialty retailer.


    The company operates a chain of more than 2,000 stores that provides lease-to-own furniture, electronics, appliances and other miscellaneous items. It also earns lesser amounts of revenue on retail and non-retail sales, franchise fees and royalties, as well as interest on loan receivables.

      


  • 2016 Year-End Portfolio Review

    This is the fifth year-end portfolio review I’ve written on GuruFocus – as they say, time flies when you’re having fun!


    I’ll start with the usual disclaimers: First, I have no idea how these stocks will do over the next week, month or year; and second, I wish they would move lower so I could buy more at appealing prices (I plan on being a net buyer of stocks for a long time).

      


  • Warren Buffett Rings in New Year Bullish on Stocks

    As of Jan. 3, the U.S. stock market is significantly overvalued with a Wilshire 5000 index / gross domestic product ratio of 126.4%. Based on this valuation, the stock market's annual return is -0.3% including dividends. Despite this, Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) CEO Warren Buffett (Trades, Portfolio) still rings in 2017 bullish on stocks based on his asset allocations.


    Figure 1 summarizes Berkshire Hathaway’s asset allocations as of Jan. 3. Even though the conglomerate slightly reduced its allocation in equities, Berkshire Hathaway still has more than 50% of its liquid assets in company stocks, significantly higher than the asset allocations in bonds and cash. Additionally, Berkshire’s stock relative to equity ratio is 37%, which is significantly higher than those for cash and bonds. Figures 2.1 to 2.3 illustrate the historical trend of Berkshire’s ratios relative to shareholder equity.

      


  • Mean Reversion and the Bell Curve

    Over a three-year time period, stock prices tend to mean revert. This has spawned numerous investment approaches that try to squeeze capital gains out of those reversions. Classic deep value investing, as popularized by Benjamin Graham at Columbia Business School, taught that you would succeed by buying 50-cent dollars and selling them when and if they reverted to the mean. The "Dogs of the Dow" strategy of buying the 10 highest-yielding Dow stocks was born out of mean reversion.


    Over long time periods, common stock performance falls on a bell curve like the one listed below. Half the stocks outperform and half underperform. Among the poorest performers, some go to 0%, and 5% of common stocks do so poorly that they can ruin a concentrated stock portfolio. (1)

      


  • 23 Questions With Value Investor De Mai

    1. How and why did you get started investing? What is your background?


    While majoring in electrical engineering degree in college, I minored in economics, Japanese studies and psychology. I always wanted to know more about investing. After college, I started to learn how to take care of my own finances in order to manage my own 401K and IRAs. Through the Nightly Business Report on PBS, I learned about capital allocation and investing. I bought my first stock soon after graduation.

      


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