Warren Buffett

Warren Buffett

Last Update: 03-28-2016

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

  • 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.


  • Chipotle Mexican Grill: The Opportunity of a Lifetime

    Chipotle Mexican Grill (NYSE:CMG) has been a high-flying growth stock since it went public in 2006.

    The company's above-average returns and higher comparable restaurant sales growth has driven shares upward. Chipotle has been a revolutionary restaurant chain focusing on providing fresh non-GMO foods to customers. This laser focus on providing the highest quality food has given the company a cultlike following.


  • Helmerich & Payne, MasterCard Have Growing Dividend Yields

    Thanks to GuruFocus’ All-in-One Screener, I want to highlight stocks that have a growing dividend yield with sustainable payout ratio. This sustainability is confirmed by long-term company profitability and a very strong financial situation.

    Helmerich & Payne Inc. (HP) has a dividend yield that has grown by 81% over the past five years. The yield is now 4.81% with a payout ratio of 127%. The average ROA of the last five years has been 10.84% and the average ROE during the period was 15.8%.


  • The Long-Term Investing Guide to Compounding Wealth

    What is long-term investing?

    Long-term investing is the process of buying and holding investment securities you believe will compound investor wealth indefinitely into the future.


  • On Value Traps

    In order to identify and potentially avoid value traps, we must first understand what they really are and realize they can come in many different forms.

    With pessimism and fear high, these are perfect times for value investors. When stock prices plummet, there are often bargains to be had. But the common sense value investor knows stock price often has little to do with actual value.


  • Take 5: Consider Stocking Up on Gilead Sciences

    Gilead Sciences Inc. (NASDAQ:GILD), is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines. Gilead’s primary areas of focus include HIV, liver diseases such as chronic hepatitis C virus (HCV) infection and chronic hepatitis B virus (HBV) infection, oncology and inflammation, and serious cardiovascular and respiratory conditions. The company’s HIV products include Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost and Vitekta. It also has products for liver diseases including: Harvoni, Sovaldi, Viread and Hepsera. Zydelig is the Gilead’s oncology product. Its cardiovascular products include the following: Letairis, Ranexa and Lexiscan/Rapiscan. Its Respiratory products include both Cayston and Tamiflu. Gilead also has other products including AmBisome and Macugen.

    Market outlook


  • How to Achieve Greatness

    I am not really sure how I got to a very old post at Fortune (it is from October 2006), but in the post, Geoffrey Colvin, the senior editor at the time, discussed how to become great at our fields. He cited Warren Buffett (Trades, Portfolio) and Tiger Woods, among others, as examples and provided a great road map that we can also apply as investors. His publication is backed by research made by Florida State University and three professors, who believe greatness can be narrowed down to four key elements:


  • Charlie Munger Provides Valuation Tips

    As the notes of the 2015 Daily Journal Annual Meeting are released, we encounter some of Charlie Munger (TradesPortfolio)'s answers to questions regarding valuation. As usual, his wisdom is notorious as he mentions how he applies multidisciplinarity, opportunity costs and several other factors to reach a discount rate:

    Questioner: My question: As an investor, what do you use to value a business or a company? How do you use the discount rate to calculate intrinsic value?


  • Why Do Smart People Keep Investing in Hedge Funds?

    Hedge funds had another miserable year in 2015.

    While the S&P 500 index was up 1.2%, the average hedge fund lost 3%. This was on top of several years of sub-par performance.


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