Warren Buffett

Warren Buffett

Last Update: 02-17-2015

Number of Stocks: 47
Number of New Stocks: 2

Total Value: $109,365 Mil
Q/Q Turnover: 3%

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

Warren Buffett Watch

  • Warren Buffett Discusses His New Foray Into Auto Dealerships and The 3G Kraft Acquisition

    Warren Buffett (Trades, Portfolio)'s latest purchase of a family built business was a large automobile dealership business. With it comes 78 auto dealerships and an operation built by an owner manager.


    Buffett expects that business to grow, and he also expects his partnership with 3G to expand.

      


  • Howard Marks Google Talk – The Most Important Thing Illuminated

    Warren Buffett (Trades, Portfolio) has been quoted as saying that when he sees a memo from Howard Marks (Trades, Portfolio) it is the first thing that he opens and reads.


    I can't image there being a higher level of praise than that.

      


  • Dividend Yield Investing in American Financials

    Dividend Yield Investing in American Financials


    Investors use various methods for valuing financial companies, such as discounted cash-flow valuation, residual income valuation, as well as price multiple and momentum valuation. Dividend yield investing is another common approach. In its simplest form, dividend yield investing involves identifying among a group of comparable companies the firms offering the highest dividend yields and then investing in those companies.

      


  • Value Investor Whitney George Explains Why The Resurgence Of Index Funds Is Great For Value Investors

    Whitney George has joined Sprott, bringing over two value-oriented funds currently with around $285 million in assets.1


    He says that investors have lost sight of the businesses they own because they’re looking at indexes, not individual stocks.

      


  • Things You Didn’t Know About Buffett’s Strategy

    Last weekend I spent a couple hours reading through Buffett’s old partnership letters (again). I was looking for something specific that I remembered him talking about, but then as I was flipping through them trying to find this comment, I just decided to read them again. I’ve always found it extremely valuable to read Buffett’s letters. Although I’ve read both the partnership letters and the Berkshire letters multiple times, I feel like I pick up something new each time I read them, or maybe I notice something helpful or relevant to a particular investment situation I’m currently working on.


    I think the best way to learn and improve as an investor is by doing it—just invest. You learn a lot by reading about companies and researching situations. The second best thing you can do outside of investing itself is by reading and reverse engineering case studies. There aren’t many in the Buffett letters, but there are a few. (I found it interesting that he lists an oil stock arbitrage in an appendix to the 1963 letter, and discusses how it was very profitable to invest in merger arbitrage deals during that time—Buffett would buy stocks of smaller oil producers that were selling out to the larger integrated oil majors, with the objective of making 20% annualized returns on the investment operations).

      


  • Kraft And Heinz: Mega Merger

    Kraft (KRFT) and Heinz (HNZ) have announced a merger agreement that will result in the third largest food and beverage company, with sales of about $28 billion. When its was announced earlier today Kraft stock surged more then 33%. The brains behind this merger was Warren Buffett and 3G Capital who in 2013 bought together Heinz. This will make the second time that Buffett did a really big deal with the private equity firm 3G Capital. Warren Buffett's Berkshire Hathaway (BRK.A)(BRK.B) also help 3G Capital finance Burger King's (BKW) purchase of Canadian chain Tim Hortons (THI) last year.


    Detail of the merger

      


  • Buffett, Buffett and More Buffett Discussing Berkshire and 3G's Big Heinz Deal

    Do you think even Warren Buffett sometimes sits back and shakes his head over the giant blue-chip businesses that he owns major pieces of? I wonder if he could have imagined what he accomplished even 20 years ago.


    Heinz, Kraft, Burlington Northern, Marmon, Iscar ..... the list goes on and on.

      


  • Why General Motors is a good buy at current levels

    General Motors (GM) has seen a lot of positive analysts commentary after announcing $5 billion share repurchase program earlier this month. Citigroup’s analyst Itay Michaeli believes that the stock has more catalysts going forward. In his latest report, he commented,


      


  • The Investor Rush To Index Funds And ETFs Has Left A Lot Of Unloved, Undervalued Stocks – Sprott's Whitney George

    Whitney George has joined Sprott, bringing over two value-oriented funds currently with around $285 million in assets.1


    He says that investors have lost sight of the businesses they own because they’re looking at indexes, not individual stocks.

      


  • Investors Behaving Badly – CMG's Steve Blumenthal


    “The secret to my success is that I buy when everyone else is selling and I sell when everyone else is buying.” – Sir John Templeton

      


  • Berkshire Hathaway Is My Hedge – Author Michael Lewis

    Is the stock market in bubble territory? Author Michael Lewis isn't sure, but he isn't losing any sleep over it.


    Why? Because he feels his portfolio is well positioned to thrive if the market tumbles due to his large Berkshire Hathaway holding.

      


  • A Peek into Ted Weschler’s Thought Process

    On March 3, 2014 on CNBC’s Squawk Box, Ted Weschler discussed Berkshire’s (BRK.A)(BRK.B) investment in DaVita Healthcare Partners (DVA). Here is the video:


      


  • Edward Lampert's Recent Buys

    Lampert is the founder of RBS Partners, L.P., a private investment company, and the chairman of Sears Holdings Corporation (SHLD). Since starting RBS Partners, L.P. in 1988 at the age of 25, he has racked up returns averaging 29% a year. He is #68 on the list of Forbes 400 Richest Americans.


    Web Page:http://www.searsholdings.com/invest/

      


  • What Special Forces Can Teach Us About Investing

    When I was a young Army officer (well, a second lieutenant, anyway, which only other second lieutenants believe to be a “real” officer rank) I was assigned to a Psychological Operations (PSYOP) Group. PSYOP doesn’t exist in the Army today; political correctness has softened the harshness of Psy War (Golly, “harshness” as an element of warfare? Perish the thought). It’s now called Military Information Support Operations.


    Whatever we call it, the job of the Psy Warrior is to either induce or reinforce behaviors favorable to United States national objectives, assuming of course that the United States leadership actually has objectives (and can articulate them.) We trained with and deployed with other special operators so it was a challenging and exciting job, but I noticed that the Special Forces (Green Beret) teams seemed to have even more fun and adventure.

      


  • Warren Buffett's 4 Portfolio Stocks That Are On Sale

    The best living investor Warren Buffett (Trades, Portfolio) had another excellent year in 2014. His company, Berkshire Hathaway (BRK.A)(BRK.B) experienced a 28% increase in book value, besting the S&P 500’s 11% gain. The outperformance takes him out of two years of returns more closely tracking the index.


    Buffett gave investors some new advice to investors in his annual letter released in 2014, encouraging them to rethink volatile markets:

      


  • Nasdaq 5000 – What A Difference 15 Years Makes – The View From Oakmark Funds

    Reading the financial press over the last few weeks, you may have noticed several articles highlighting the NASDAQ Composite’s return to the 5000 mark in early March – almost exactly 15 years after its prior peak in March 2000. The common theme in the press seems to be wariness that another technology stock bubble could be forming. The attention is understandable, given our human tendency to reflect on big anniversaries and over-emphasize large round numbers; however, we believe concerns of another technology stock bubble are misguided.


    We believe the NASDAQ 5000 of 15 years ago is very different from the NASDAQ 5000 of today. While the price of the index is the same and contains many of the same high-quality technology businesses it did in 2000, the underlying value in the form of earnings is quite different. So different in fact that technology was the second-largest sector weight in the Oakmark Fund, at 25% as of the last quarter, compared to a 0% weighting in March of 2000. So how have we come to such different conclusions 15 years later?

      


  • Decoding Buffett's Famous Quotes

    Most of us can recite most of Mr. Buffett’s famous investment-related quotes. I have constantly kept reminding myself of his wonderful quotes. However, earlier in my investment career, I realized that the fact that I can recite those quotes adds very little value to my investment skills because I didn’t go a step further and ask the question why and what experiences taught Mr. Buffett these lessons. Being a slow learner, it took me a while to grasp the power of what I call “decoding Mr. Buffett’s bites.” In this article, I’d like to share with the readers the approach I adopted in order to get a deep understanding of Mr. Buffett’s investment wisdoms. Although it has worked well for me, I cannot guarantee that it will work well for you.


    Let me use one of my favorite quotes as an illustration:

      


  • Bill Gates Discusses The 50 Years Of Berkshire Hathaway

    2015 marks fifty years since Warren Buffett (Trades, Portfolio) took over failing textile manufacturer.


    Buffett friend and billionaire Bill Gates (Trades, Portfolio) talks about what has made Berkshire Hathaway (BRK.A) such a success.

      


  • Warren Buffett Comments on Tesco PLC - I made a big mistake

    Attentive readers will notice that Tesco, which last year appeared in the list of our largest common stock investments, is now absent. An attentive investor, I’m embarrassed to report, would have sold Tesco shares earlier. I made a big mistake with this investment by dawdling.


    At the end of 2012 we owned 415 million shares of Tesco, then and now the leading food retailer in the U.K. and an important grocer in other countries as well. Our cost for this investment was $2.3 billion, and the market value was a similar amount.

      


  • DE is below Peter Lynch Earning Line

    From my watch list, let’s have a short view of Alliance Resource Partners LP (ARLP), that looks undervalued based on the Peter Lynch Price Value.


    Deere & Co (DE)

      


  • Market Valuations and Expected Returns – March 12, 2015

    The market was up more than 30% in 2013, the best year since the go-go years of 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. In February, the market regained its strength by increasing 5.49%. Can market continue to grow in 2015?


    Bernard Baruch once said “A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster.”

      


  • Get To Know Your Farmer – Warren Buffett's Grandson Howard Jr.

    When you carry the name of the greatest investor and perhaps greatest philanthropist of our time, people pay attention to what you are doing.


    For Warren Buffett (Trades, Portfolio)'s grandson Howard Jr., it is farming in the Buffett home state of Nebraska.

      


  • Buffett’s Choice Of Dividend Stocks

    Dividend stocks are one of the best choices when it comes to providing a good return for investors. There are many dividend stocks in the market today; it is all about making the right choices and knowing when to invest in these stocks. One of the greatest investing legends of all times, Warren Buffett, founder and chairman of Berkshire Hathaway (BRK.A) (BRK.B), prefers only high dividend stocks when it comes to putting his stakes in. Though his holding company, per se, does not pay dividends, he has an interesting mix of stocks under his control from the dividend-paying category. The following are some of the best dividend stocks as per Buffett himself. He has picked these stocks based on their current dividend yields, cash-flow generating capacity and potential to grow in the future.


    Focusing on core operations

      


  • Stock That Can Shield You From Market Blues

    Investing in the stock market is not all about returns only. You must be ready to take the risks that come along with those returns as well. Though the market is known for its volatility, there are certain stocks that are not affected by these as they are quite strong in their fundamentals. There are many factors that make these companies stand strong irrespective of the turmoil that the stock market goes through. Strong financials, product innovations, huge brand name, etc., are some of the factors that have stood in good stead for these companies. You can invest in the following stocks if you want to protect your investments against the ups and downs of the stock market.


    Beating competitors in style

      


  • Why Warren Buffett's Son Isn't The Heir Apparent - From Buffett Author Lawrence Cunningham

    Gen. Douglas MacArthur's son, Arthur, escaped the towering shadow of his heroic dad only by changing his name and living as a recluse for most of his life. Bill Gates (Trades, Portfolio) Jr., son of a renowned lawyer whose name graces a top global firm, eschewed the bookish discipline of law and dropped out of college to forge his own spectacular path in computer software and, lately, philanthropy. Winston Churchill's son might have been better off had he never run for public office. Greg Norman Jr.'s golf game may be better than average, but even impressive performance matters little when the frame of reference is his championship father.


    The children of legends who carve out their own niche offer a broad model and lesson: Find your own strengths and play to them rather than try to measure up to those of your parents'. The succession challenge may be greatest in the context of a family business, as several generations of DuPonts (DD) or Pritzkers might attest.

      


  • Optimizing Your Asset Allocation

    When to buy a stock and at what price are very important decisions. However, serious investors will tell you the most important decision is how you allocate your assets. Many people step back and look at their asset allocation and how it needs to change as they approach retirement.


    The first significant question you have to answer is how much do you allocate to equities and cash/fixed income. There are many approaches to answer this question, but the vast majority of investors following an asset allocation model use one of these two approaches:

      


  • Warren Buffett's Secret of Success

    We welcome back our new contributing editor, Shawn Allen, who this week looks at the amazing career of one of the world’s great investors and offers his insights into the phenomenal success of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Corp. Shawn has been providing stock picks on his website at www.investorsfriend.com since the beginning of 2000 and has a great success record. He holds an MBA degree, an engineering degree and is a Certified Management Accountant and a Chartered Financial Analyst (CFA). He is based in Edmonton. Here is his report.


    Shawn Allen writes:

      


  • Seven Subscribers Win Contest to Name Buffett's Stock Buys in Fourth Quarter

    Seven has long been regarded a lucky number, and it certainly proved to be lucky in our annual contest to name the stocks Warren Buffett (Trades, Portfolio) bought in the fourth quarter.


    We received nearly four dozen entries, and seven of our subscribers were a perfect three for three. That’s a pretty impressive accomplishment, and it deserves to be recognized so, rather than use a tiebreaking procedure to name a single winner, we’ve decided to honor all seven as winners of our contest. Congratulations!

      


  • Buffett’s 50 Years at Berkshire-Hathaway

    Warren Buffett (Trades, Portfolio)’s annual letter to Berkshire-Hathaway (BRK.B) shareholders is on my must-read list, and I suggest adding it to yours as well. The letter always provides investing insights on Buffett’s folksy but outspoken manner. This year’s letter included special commentary from both Buffett and his partner Charlie Munger (Trades, Portfolio).


    I’m going to give a few highlights in this week’s Investor Update both from the 50th anniversary commentary and the “traditional part" of the letter. This will be a mere sampling mixed in with observations from me. It is not, nor is it meant to be, a substitute for the real thing. This is why I encourage you to read the actual letter—even if you are not a Berkshire-Hathaway shareholder, as I am.

      


  • Which Regions and Sectors Are International Gurus Buying?

    Warren Buffett said in an interview published on 2/25/2015 in the newspaper Handelsblatt that his holding company Berkshire Hathaway is definitely interested in companies in Germany. “Germany is a terrific market, lots of people, lots of buying power, productive, it’s got a legal system we feel very good with, it’s got a regulatory system we feel very good with, it’s got people we feel very good with - and customers,” Buffett said.


    George Soros, one of history’s most successful financiers, has been selling US holdings to buy European stocks. It is said that he has moved about $2 billion into companies in Asia and Europe, according to a person familiar with the strategy.

      


  • Stocks That Warren Buffett Might Buy

    When you look for attractive investment opportunities, you might have taken a deeper look at the activities of the professionals like George Soros (Trades, Portfolio), Bill Ackman (Trades, Portfolio) or Warren Buffett (Trades, Portfolio).


    Warren Buffett (Trades, Portfolio) is one of the most respected investors in the world and his investment criteria are simple: Buy a growing business with inimitable assets at a reasonable price. Here are his criteria from his annual letter in detail:

      


  • Warren Buffett Interview With Iconic Voices – From Journalism To JP Morgan

    He has an unimaginable amount of money yet he is one of America's most beloved citizens.


    How does Warren Buffett (Trades, Portfolio) do it?

      


  • A Small Cap that Qualifies for Buffett Munger Status

    They’re not glamorous, but ball bearings and millions of other industrial bits and pieces keep our world moving, everything from our cars to our factories.


    Of course, all those bits and pieces in existing machines keep wearing out and must be replaced, while other companies keep building new machines to replace those that can’t be repaired any more. Partner that ongoing need with sophisticated and competent retailing, and you’ve got a business that Warren Buffett (Trades, Portfolio) would understand and likely appreciate.

      


  • Interview With Kovitz Investment Group On High Quality Investing

    Since its founding in 2003, Mitch Kovitz and Jonathan Shapiro have built an incredible team at Kovitz Investment Group. The addition of Joel Hirsh in 2006 made the team all the more vigorous in its search for high-quality businesses that offer outsized return potential with a low probability of permanent capital loss. The group will be the first to tell you that its approach is a little “old school” and unconventional to others in the industry, but it wouldn’t change its approach for anything in the world.


    It’s hard to argue with its results. In fact, its returns have been downright stellar. Since inception, KIG has returned 11.17% vs. 7.81% for the S&P 500.

      


  • Horizon Kinetics' March 2015 Commentary – Time and Chance

    For long-term value investors, risk is not defined by the level of volatility but by the likelihood of shareholder capital being permanently impaired. Though often vilified, share price volatility is actually opportunity masquerading as Warren Buffett (Trades, Portfolio)’s heavy-drinking manic depressive – "the crazier he is, the more money you're going to make." In other words, volatility often proves a significant advantage to the long-term investor since the result can be an increase in the frequency of mispriced securities (i.e., opportunities). Less sanguine types simply accept it as an inevitable and unpleasant part of the investment experience. That said, in the behavioral psychology context, the frustration that some investors feel when their portfolios exhibit volatility that exceeds expectations is certainly understandable, especially if such volatility is not associated with positive excess rates of return in the near term.


    The challenge for investors – professional or otherwise – is to remain steadfast during periods of elevated volatility and the oft-associated underperformance. This is not to say that investors should stubbornly refuse to revisit their investment theses if the fundamentals have changed. Rather, it refers to the ability to tolerate short-term stock price fluctuations when the fundamentals have not changed and still appear favorable. This uncommon ability not only epitomizes the successful investor but the successful decision maker in any field where there is an element of chance.

      


  • High-Quality Value Investing With Benjamin Graham


    • Benjamin Graham is rightly considered the father of value investing.
    • But the term "value" is often misunderstood to refer only to price and not quality.
    •   


  • Star Value Investor Mohnish Pabrai Explains Why Investing Is Nothing Like Brain Surgery

    Mohnish Pabrai (Trades, Portfolio) is used to making investment pilgrimages. The ace investor is a regular at Warren Buffett (Trades, Portfolio)’s annual Berkshire Hathaway meeting as well as at the Value Investing Congress that is held every year in New York. This year, too, Pabrai has made the trip from his Irvine, California, office on the West Coast to check if he is missing out on anything. That is enough opportunity for us to catch up with him at the Marriott Marquis Hotel, on New York’s Times Square. The Marquis raked up much controversy when it was being built, but is now famous for housing New York’s only rooftop revolving restaurant. Pabrai’s investing style, however, has been anything but controversial. His cloning strategy, which almost anyone can implement but not many do, has made Pabrai a multi-millionaire many times over. All those millions are now being put to very good use through his Dakshana Foundation. It seems then he has decided to not only clone Buffett’s investing style but also his intent to give away most of his riches to causes that matter. Make no mistake, though, while the thought is benevolent, return on investment is still the driving factor.


    What prompted you to get into investing? You were a techie and then you had your own business before you became an investor.

      


  • Warren Buffett On Volatility And Risk

    The Berkshire Hathaway annual shareholders’ letter was released this past Saturday. Now, this is somewhat of an event all in itself for capitalists all around the globe. Even if you’re not a shareholder of Berkshire Hathaway Inc. (BRK.B), one looks forward to any dribble or drop of knowledge from the greatest known investor of all time, Warren Buffett (Trades, Portfolio).

    I’m don’t own any BRK stock, so I’m not a shareholder. And that’s due primarily to the fact that shares do not pay a dividend and thus do not fit my goals/needs/desires. However, that doesn’t mean I’m not a huge fan of all things Warren Buffett (Trades, Portfolio). And I say that not just in the business or investing sense, but also in the lifestyle sense.  


  • Berkshire Hathaway The All Season Stock

    The stock market is known for its volatility and unpredictability. Almost all the sectors keep seeing ups and downs quite frequently. Sometimes, market factors favour some sectors, due to which prices of those sectors shoot up. Some other times, with the overall downgrade of an economy and strict market forces, prices of certain companies come crashing down. In this scenario, would you not like to invest in a company whose shares are rock-solid, come what may? Irrespective of the bumpy nature of the stock market, one stock has a smooth ride. We are talking about one of the biggest holding companies, the world has ever seen, Berkshire Hathaway (BRK.A) (BRK.B) here. The fact that it is the brain-child of the investment legend, Warren Buffet, speaks volumes about the company’s success. Let us now analyze why this stock is probably the only one that is suitable for all kinds of seasons today.


    What makes Berkshire Hathaway special?

      


  • Dividend Growth Stocks Are My Conviction

    For many investors, there is no clear conviction as to how they should invest. Today's investments are guided by what was read or heard yesterday, and the popular media is constantly churning out new and different ideas. Granted it makes for some "interesting" reads, but it certainty is no way to run a portfolio.


    After the financial crisis, many "experts" questioned if stocks should be the main portion of your investment portfolio. Some looked to bonds after their meteoric rise as interest rates fell. While others foresaw an apocalypse, with gold as your only safe place for your investment dollars. In the end, you could find support for virtually anything you wanted to do. With the benefit of hindsight, we can see that stocks have done quite well since 2009.

      


  • Was Buffett Wrong about IBM?

    The last time that Warren Buffett (Trades, Portfolio) admitted he made a big mistake was buying ConocoPhillips. He misjudged the oil price trend. As long as he realized it was a mistake, he did not hesitate a trading day to sell a big portion of it. Buffett is not God (he said that position had been taken), but he is a genius. A genius admitted his mistake and corrected it fast. ConocoPhillips is not the first, and probably not the last mistake that the all-time-Guru will make.


    Could IBM be his next big mistake?

      


  • Warren Buffet Comments on GM — Opposes Wilson Appointment, Supports CEO Mary Barra

    General Motors' (GM) stock is seeing significant interest from fund managers recently. Last quarter, two of the Wall Street's savviest investors, Warren Buffett (Trades, Portfolio) and George Soros (Trades,Portfolio) increased their stake in the company. Warren Buffett (Trades,Portfolio) now holds 41 million shares of the company, while George Soros (Trades, Portfolio) holds ~3.86 million shares and more than 1 million call options. In addition to them, hedge fund managers David Tepper (Trades, Portfolio) of Appaloosa Management, Kyle Bass (Trades,Portfolio) of Hayman Capital Management also own significant stake in the company.


    David Tepper and Kyle Bass along with firms HG Vora and Taconic Capital are trying to elect Harry Wilson to the company's board. Together, these four investors own ~2.1 percent of General Motors' shares. Wilson knows the auto business well and was tapped by President Barack Obama to restructure GM in its U.S.-backed bankruptcy in 2009. He intends to nominate himself for a seat on the board of General Motors Co. and propose an $8 billion stock buyback. At current valuations, this amounts to 13.33% of General Motor's outstanding shares.

      


  • Warren Buffett's New Interview with CNBC

    Interview Part 1


      


  • The Article On Jimmy Ling Recommended By Warren Buffett In the 2014 Berkshire Shareholder Letter

    From the Oracle in his 2014 shareholder letter:


    Before I depart the subject of spin-offs, let’s look at a lesson to be learned from a conglomerate mentioned earlier: LTV. I’ll summarize here, but those who enjoy a good financial story should read the piece about Jimmy Ling that ran in the October 1982 issue of D Magazine. Look it up on the Internet.

      


  • Carol Loomis Grades Her Friend Warren Buffett: How Does A 1,826,163% Stock Rise Sound?

    Most companies put out one annual report. Berkshire Hathaway (BRK.A)(BRK.B) in effect posted two today, which when printed will have just one gold-colored cover, signifying a Golden Anniversary.


    The first report is for 2014: A good year, says CEO Warren Buffett (Trades, Portfolio), 84, but hardly perfect (we’ll get to that).

      


  • On 2014 Berkshire Special Letter: Buffett's Confessions and Lessons

    Berkshire (BRK.A) released its annual chairman letter to investors today. This edition is a special 50th anniversary edition that included two special sections. These two sections are commentary written by Warren Buffett and his partner Charlie Munger (Trades, Portfolio) on Berkshire's past, present and future. The letter overall is a great read, and I highly suggest everyone to read it.


    Below are some of my own commentary on the key points in Buffett's section, which included several lessons he learned and the lessons he wanted readers to comprehend. I will write a separate post for Munger's section.

      


  • Notes from Reading Warren Buffett’s Latest Shareholder Letter (2014)

    These are the notes from reading Warren Buffett (Trades, Portfolio)’s latest shareholder letter. You can read the complete letter here.

    • In our view, the increase in Berkshire’s per-share intrinsic value over the past 50 years is roughly equal to the 1,826,163% gain in market price of the company’s shares.
    •   


  • Preparing for an Interest Rate Increase

    The Federal Open Market Committee recently released its January 27-28 meeting minutes, which included more detailed insight into the economy’s growth and the FOMC’s outlook for future interest rate hikes. The minutes addressed its key indicators including inflation and employment. It also noted improved 2014 economic indicators which have continued to guide the FOMC towards a federal funds rate increase in 2015.


    The January meeting and FOMC minutes continued to focus on price stability and maximum employment. The FOMC reiterated its inflation target rate of 2%. Prior to the January FOMC meeting, the inflation rate appeared to be stabilizing at 1.25%; however, February’s reading showed the inflation rate dropping to 0.7%, according to the Commerce Department, as lower energy prices drag on US prices.

      


  • Stock Buybacks, Timing, and Allocation of Capital

    In our healthcare consulting work, one of the huge challenges we are working on is the ability of a pharmaceutical to produce adequate results in its research and development efforts as we are constantly trying to figure out which project had the highest opportunity of product commercialization. In the last several years, there has been an enormous shift in thinking about allocating capital in research. Rather than attempting to calculate which project to fund, focus has shifted to when investments shouldn’t be made. It turns out timing is more important than selection in many ways. A report by BCG (“Does Size Matter in R&D Productivity?” Nature Reviews Drug Discovery 12, 901–902 (2013)) summed it up best:


    The difference is not, therefore, about stringency – but about when you chose to apply the stringency as capital is expended”.

      


  • Investment Gurus Love These 10 Stocks

    Recently I published an article about Warren Buffett's latest dividend stock buys and sells of the recent quarter.


    I'm ever surprised about his new investment. He bought Deere (DE), a great company with high market share in the farmer's equipment segment, while I was selling it due to high debt loads and operational headwinds.

      


  • Gurufocus Exclusive Interview With François Rochon Of Giverny Capital, 20x In 20 Years, Part II

    François Rochon of Giverny Capital.


    In our past article, Gurufocus Exclusive Interview With François Rochon Of Giverny Capital, 20x In 20 Years, Part I, we discovered an outstanding investor: François Rochon, president, portfolio manager and founder of Giverny Capital, The Rochon global portfolio has had an outstanding track record of a 15.5%* annual return over the past 20 years, compared to 8.3% for the index. If you had invested 100 000$ in 1993 with François, your assets would have grown close to 2 000 000$ today. François is not only a great investor but also a great art collector. His approach towards collecting art and investing is similar, as he is looking for greatness, uniqueness and characteristics that will last the test of time.

      


  • Why Buffett, Soros and Other Hedge Fund Titans are Buying General Motors

    General Motors' (GM) stock is seeing significant interest from fund managers off late. Last quarter, two of the Wall Street's savviest investors, Warren Buffett (Trades, Portfolio) and George Soros (Trades, Portfolio) increased their stake in the company. Warren Buffett (Trades, Portfolio) now holds 41 mn shares of the company while George Soros (Trades, Portfolio) holds ~3.86 mn shares and more than 1 mn call options. Other notable investors who bought shares of the company last quarter includes Ken Heebner (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and T Boone Pickens.


    The company's business is improving and it has now been profitable for 20 consecutive quarters. Last quarter, GM's business delivered strong core operating performance with almost all key operating metrics including global deliveries, net income and adjusted EBIT improving. The company's adjusted EBIT was $2.4 billion for the fourth quarter, a $500 mn improvement over the prior year. Adjusted EBIT margin was 6.10%, up 140 basis points from the fourth quarter of 2013. Net income to common shareholders was $1.1 billion, up $200 mn compared to prior year period and earnings per share improved to $0.66 versus $0.57 of prior year.

      


  • DirecTV: A Low Risk Merger Arbitrage Play

    Last year, AT&T (T) announced its plans to acquire DirecTV (DTV) for $95 per share. The acquisition is likely to close in first half of this year pending regulatory approval. DirecTV's shares are currently trading at $87.47 providing an excellent merger arbitrage opportunity. I believe DirecTV offers a good low risk opportunity to investors who want to benefit from price discrepancy between DirecTV's current price and AT&T's offer price. Further, given DirecTV attractive valuation and growth rate, even if this deal doesn't goes through DirecTV shareholders will be rewarded in the long term. Last quarter, legendary investor Warren Buffett (Trades, Portfolio), who is also a long time shareholder of DirecTV, added 1,353,468 shares of the company to his portfolio. He now hold 31,353,468 shares of DirecTV. His recent purchase is an indication that the company remains undervalued at the current levels. The company's shares are likely to gain whether the company's merger is successful or not. Here's a look.


    Scenario I: If AT&T and DirecTV's merger is successful

      


  • Part Four: A Continuing Discussion on Intrinsic Value

    In a recent interview with Consuelo Mack of WealthTrack (link), Jean-Marie Eveillard of First Eagle Funds said something that I’ve heard many times before – and something I have a tough time understanding. I figured it’s about time that I put my thoughts on this topic in writing.


    When discussing the different types of value investors, Mr. Eveillard had this to say about Warren Buffett (Trades, Portfolio):

      


  • Berkshire Hathaway Buys IBM, Deere, Restaurant Brands, Sells Exxon Mobil, Liberty Broadband Corp

    Warren Buffett (Trades, Portfolio)’s investment company Berkshire Hathaway just reported its fourth quarter portfolio. Berkshire buys IBM, Deere & Co, Restaurant Brands International Inc, Charter Communications Inc, Precision Castparts Corp, Twenty-First Century Fox Inc, Suncor Energy Inc, Directv, sells Exxon Mobil Corporation, Liberty Broadband Corp, Liberty Broadband Corp, ConocoPhillips, Express Scripts during the 3-months ended 12/31/2014, according to the most recent filings of his investment company, Berkshire Hathaway.


    As of 12/31/2014, Berkshire Hathaway owns 47 stocks with a total value of $109.4 billion. These are the details of the buys and sells.

      


  • Seth Klarman Buys Stake in 3 Pharmaceutical Firms

    Seth Klarman (Trades, Portfolio) founded The Baupost Group in 1982 and has suffered only two losing years since then.


    The value investor is the author of the famed book “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor.” Written in 1991, less than 5,000 copies of the book were printed and can sell for almost $2,500 today. Even Warren Buffett (Trades, Portfolio) is said to have a copy of the book on his desk.

      


  • Warren Buffett: Full Interview Fortune



  • Robert Bruce new Buys

    Robert Bruce (Trades, Portfolio) is founder of the Bruce Fund run by Robert and son Jeff. From 2000 through 2006, the Bruce Fund returned annualized 29.7%. Bruce's previous returns and more recent returns have been lower.


    Web Page: http://www.thebrucefund.com/

      


  • Ownership, Risk and Performance

    In preparing our annual report I came across one of the better lines Warren Buffett (Trades, Portfolio) has used when he wrote that he and Charlie Munger (Trades, Portfolio) “eat our own cooking.” As money managers we have always been cognizant of aligning our personal finances with investor returns. As of the beginning of 2015 we have roughly 95% of my wealth in the Nintai portfolio. In the process of writing this year’s report we were intrigued to see how many investment managers live by this code. We decided to take a look at how much fund management invest in their own funds and what impact/insights it might have on many of us as private investors.


    Fund management investment: A table is worth a thousand words

      


  • A Publicly Traded Unicorn Maker: Spectral Capital Corp (OTCMKTS:FCCN)

    A "unicorn" in venture capital parlance is a $1 billion company, and a publicly-traded incubator that hopes to grow the next unicorn is Spectral Capital Corp (FCCN). Spectral Capital is a startup incubator that invests in fast-growth technology companies, similar to famous venture capital firms like Andreessen Horowitz, Sequoia, Venrock, Accel and Greylock. Spectral Capital invests in founders and helps them rapidly test, deploy and refine their services while "incubating" under its care. Incubators provide capital and services to their incubating companies, often handling recruitment, technology, accounting and legal to jump-start their growth. Because shares of Spectral Capital are public (stock symbol "FCCN"), anyone is able to buy a portion of this incubator and benefit from its performance.


    Unicorns often achieve a $1 billion valuation within one year, e.g. Instagram, Uber, Slack and Twitch. Indeed, almost all modern unicorns are therefore born as private – not public – companies. This is a major change since the days of Google (GOOG), Amazon (AMZN) and AOL (AOL) – all of which became unicorns after going public.

      


  • Gurufocus Exclusive Interview With François Rochon of Giverny Capital, 20x in 20 Years, Part I

    In March, Grahamites once again wrote for us an outstanding article for Gurufocus. In this case, the article was called "Giverny Capital - A true hidden gem." The Rochon global portfolio has had a truly impressive track record of a 15.5%* annual returns over the past 20 years, compared to 8.3% for the index. If you had invested $100,000 in 1993 with François, your assets would have grown close to $2,000,000 today. This track record, highly concentrated in stocks, is impressive and without a doubt raises our curiosity. We have read all his annual letters and were extremely impressed by the depth of his investment wisdom.


    Our curiosity led us to ask Francois Rochon, the president, founder and portfolio manager of Giverny Capital, for an interview, in order to complement our understanding of his successful investment approach. We are glad that François agreed to meet with us in his office, although we unfortunately cannot reproduce the unique environment with the many outstanding pieces of art that are located at the offices of Giverny Capital. Thus, we will do our best to share with you his investment wisdom in this series of articles.

      


  • John Rogers Increases His Position in MN

    John Rogers (Trades, Portfolio) of Ariel Investment, LLC recently increased his position in Manning & Napier Inc (MN). There are currently 186 stocks in his portfolio, valued at $7.750 billion with a quarter over quarter turnover rate of 8%.


    John Rogers (Trades, Portfolio) showed an interest in the stock market when he was only 12 years old, when his father would buy him stocks as Christmas and birthday presents. As an alumnus of Princeton University where he studied economics, he received the Woodrow Wilson Award in 2008, which is the most prestigious award, given to those who embody a career in national service.

      


  • Market Valuations and Expected Returns – February 10, 2015

    The market was up more than 30% in 2013, the best year since the go-go years of the 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. Can the market continue to grow in 2015?


    Bernard Baruch once said, “A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster.”

      


  • Inside One of Value Investing’s Greatest Minds: Chris Browne

    Beating the stock market is actually quite simple, so why do most investors find market-beating returns so elusive?


    The success of value strategies has been well documented for at least the past 60 years. It’s no secret, now well into the 2010s, that beating the market is as simple as putting together a diversified portfolio of value stocks and rotating those stocks when they appreciate back up to fair value. It’s baffling, then, why so few people actually take advantage of this very simple strategy, despite the evidence.

      


  • Charlie Munger Reduces Stake in Posco

    About two months ago, Barron’s reported that Warren Buffett (Trades, Portfolio) thought stock in Posco (PKX), one of the world’s top five steelmakers, was “cheap.” Buffett, Barron’s observed, had been investing in PKX since 2007 and held a 5% stake in the South Korean steel company at that time.


    But Posco struggled in 2014, Zacks Equity Research reported last week, with weak earnings in the fourth quarter. For the year, its earnings were down nearly 59%. Today, PKX is nowhere to be found in Berkshire Hathaway’s portfolio.

      


  • Warren Buffett: New Interview

    Legendary investor Warren Buffett (Trades, Portfolio) of Berkshire Hathaway (BRK.A) (BRK.B) did an interview with Fox Business yesterday. He discussed a wide range of stuff from the fed raising rates to Walt Disney Company (DIS) and to the expansion of Nebraska Furniture Mart. During the interivew Warren Buffett (Trades, Portfolio) was ask whether the Fed will raise rates, Buffett said, "I think it’s going to be very tough to raise rates when you’ve got what’s going on around the world.” He went on to say the last thing he would "want to buy is a 30-year government bond." Buffett also discussed not having a stake in Disney and what he thought of Walt Disney when he met him in the 1960s. He discussed buying a new business, probably a small European company, and said he believed that Nebraska Furniture Marts new expanded warehouse would do over a $1 billion in sales.


    Excerpts from the Interview

      


  • Warren Buffett On Cancer, The Keystone Pipeline and Coca-Cola

    What is the last asset Warren Buffett (Trades, Portfolio) would want to own today? The 30 Year Treasury.


    Warren Buffett (Trades, Portfolio) joined Fox Business News for an extended interview. He touches on how he got started with his partnership, his prostate cancer, the Keystone Pipeline and many other items.

      


  • How Berkshire Can Survive Life After Warren Buffett - A Stanford Panel Discussion

    How do you replace the irreplaceable?


    It’s an especially salient question for Berkshire Hathaway and its 84-year-old Chairman and CEO Warren Buffett (Trades, Portfolio). Speculation about the company’s succession plan and what a post-Buffett Berkshire Hathaway will look like is mounting in advance of the company’s annual letter to shareholders, due in February, in which Buffett has promised to reveal his vision for the company’s future.

      


  • How to Leverage +EV to Earn More on Your Net Net Stocks

    Investing is about numbers. That much is certain. This quantitative focus makes the concepts of probability and risk management that much more important, and investors must stay vigilant when it comes to seeking out and analyzing opportunities.


    Simply picking stocks can sometimes lead to big wins, but many of the most successful investors are individuals and firms who take a logical, mathematical approach to choosing companies.

      


  • A Look at Mario Gabelli's New Added Positions

    Mario Gabelli (Trades, Portfolio), of GAMCO Investors, is known for being a smart, tough investor who uses common sense when looking at stocks to purchase. He is known for being an advocate of the "Graham-Dodd School" of investing, in which Warren Buffett (Trades, Portfolio) was a huge supporter. In short, one could say Gabelli emulates the best.


    One key component of Gabelli's style is he likes to practice patience when it comes to the market. He is also more interested in identifiable trends rather than living and breathing for each economic report.

      


  • The Education of a Young Capital Allocator

    "Sixty years ago I knew everything; now I know nothing; education is a progressive discovery of our own ignorance." Will Durant


    Communication:

      


  • Contest Announcement: Pick the Stocks Warren Buffett Bought in the Fourth Quarter

    In less than two weeks Warren Buffett will report his portfolio of Berkshire Hathaway (BRK.A)(BRK.B). In the past, it has been GuruFocus’ tradition to host a quarterly contest, asking our users to name the stocks Warren Buffett bought during the fourth quarter of 2014.


    We are reviving that tradition today, and we invite all registered users to participate in this contest. The winners will each win a copy of a great investment book selected from this list:

      


  • Lumber Liquidators: Fearful or Greedy?

    Warren Buffett (Trades, Portfolio) famously told us to be fearful when others are greedy, and greedy when others are fearful.

    Could we use that proven advice when assessing Lumber Liquidators Holdings, Inc. (LL)? This young, small cap company has a strong history of growth on both the top and bottom lines. It also has a stock chart that looks like waves in hurricane season, as well as the attention of shorts and class action law firms.  


  • Bill and Melinda Gates Join Charlie Rose For Discussion on Philanthropy

    Bill Gates is one of the world's richest men, greatest philanthropists, and Warren Buffett (Trades, Portfolio)'s best pal.


    It is hard to know what Bill Gates (Trades, Portfolio) should be most admired for.

      


  • Tocqueville Investor Letter - Year End 2014

    It is a little-known fact that gold outperformed all currencies in 2014, except for the US dollar. In dollar terms gold declined 1.7 percent, but as the table below shows, it posted solid gains against all other currencies. While the dollar price of gold was essentially flat in 2014, highly negative media coverage created the impression that gold was a disaster. Negative sentiment weighed heavily on the performance of gold-mining shares, with our benchmark XAU index down 17.3 percent. Meanwhile, dollar bulls appear dangerously overcommitted to the greenback, with open interest at an all-time high. The dollar’s strength relative to other currencies has camouflaged the strength of gold. Both dollar and gold strength in our opinion portend trouble ahead for financial assets (click here). It seems to us that with financial assets at all-time highs and red flags proliferating, this is an opportune moment to acquire cheap wealth insurance in the form of physical metal and precious-metal mining shares.


      


  • Warren Buffett's Pal Bill Gates - The Global Economy is Slowly Improving

    What is Bill Gates (Trades, Portfolio) doing now that he is retired? Work that will save billions of lives in the coming years.

    Gates thinks that the health of people in the world's poorest countries will improve more in the next 15 years than they have in history.  


  • Use this Critical Concept to Pick Better Value Stocks

    People fear risk to such an extent, they tend to make the bulk of their decisions based on trying not to lose— which is often the suboptimal strategy if your goal is to profit.


    Many of us fear downside without properly factoring in the upside. When driven by emotion or irrational forces, there is a natural tendency to avoid risk, consequently lowering the chance for success.

      


  • Berkshire Hathaway – A Company That Has Created An Investment Legacy

    Who would have thought that a small textile company would grow up to become one of the biggest holding companies in the world today? The growth of Berkshire Hathaway (BRK.B) (BRK.A) has been nothing short of a fairy tale. It has grown leaps and bounds under the guidance of its founder, chairman and CEO, Warren Buffett – one of the smartest investing minds in the world today. He is a true legend in himself and has contributed heavily to the stupendous growth of Berkshire Hathaway. However it is just not about Warren Buffett being at the helm of affairs that has worked in favor of the company. Let us look at few of the success secrets of Berkshire Hathaway in detail.


      


  • Sears and Seven-Foot Hurdles

    A few weeks back I came across an article that someone had posted on Sears. It is a fascinating read for a few different reasons. One, I think Sears is an excellent case study of the retail industry and the difficulties of investing and allocating capital in that type of business, and two, the article was written in the summer of 1988.


    This post is not a prediction of the demise of Sears, or an indictment against those who find value in the stock, it's just my own commentary on the case study and some observations I had while reading the interesting piece.

      


  • An Analysis of the Stocks With the Highest Weight Percentage in Warren Buffett's Portfolio

    Warren Buffett (Trades, Portfolio) of Berkshire Hathaway (BRK.A) (BRK.B) is currently holding 47 stocks in his portfoliom valued at $107,785 Mil. Three of the sectors he tends to trade in the most are: Financial Services, which is responsible for 42.4% of his overall portfolio; Consumer Defense, carrying 24.8% of his portfolio's weight and Technology, which makes up 13.1% of his portfolio.


    The top four stocks in Buffett's portfolio that carry the most weight are Wells Fargo & Co (WFC), Coca-Cola Co (KO), International Business Machines Corp (IBM) and American Express Co (AXP).

      


  • Wise Guy or Guesser? Stock Prices & Fundamentals

    “You hear the expression all the time about the “smart money” moving the line [in sports betting]. People say that because they think only the wise guys can place a big enough bet that will make the oddsmakers adjust their spread. The truth is that the only thing that moves the line is money, and it doesn’t make a bit of difference where it comes from. There ain’t nobody keeping score to sort out whether it’s a wise guy or a guesser who is making the bet.”


    - Amarillo Slim

      


  • A Dozen Lessons From Buffett's Favorite Manager (Tom Murphy) On Capital Allocation

    Some people, particularly those that are in the early stages of their career, may ask: who was Tom Murphy? He is the sort of person that industry hall of fames write about in this way:


    He began his broadcasting career as the first employee of a bankrupt television station in Albany, New York. Acquisition by acquisition, he built the company.”

      


  • How Berkshire Hathaway's Todd Combs and Ted Weschler Performed Relative To The S&P 500 in 2014


    • Berkshire Hathaway's Todd Combs and Ted Weschler appear to have underperformed the S&P 500 in 2014.
    • Combs and Weschler's largest investments, DirecTV (DTV) and DaVita (DVA), outperformed the S&P 500.
    •   


  • Coca-Cola: Hard to Swallow at Today's Valuation

    For Value Investors – Coke is Not It



    History says... Risk Outweighs Potential Reward

      


  • Wisest Words on Coca Cola

    One of the readers asked me the source of a Warren Buffett (Trades, Portfolio) quote in the comment section of my Coca Cola (KO) article series. I found out that it was from an OID issue. Then I started reading those old OID issues and found quite a bit quotes on Coca Cola (KO) from Buffett and Munger. Maybe collecting them will be a fun activities, I thought to myself. To share them with the readers will be more fun. Therefore, I went back to 1998 and collected my favorite quotes from Buffett and Munger on Coca Cola (KO) listed below. Enjoy!


    Warren Buffett (Trades, Portfolio) on Coca Cola -

      


  • CGI Group: Strong Growth and a Rocky Road

    What kind of company takes on the giants of information technology, IT, and not only survives, but thrives?


    CGI Group (GIB) on the NYSE and (GIB-A.TO) on the Toronto Stock Exchange) is that company. It’s grown rapidly, and rapidly enough to become one of the giants itself, now ranking fifth among the worldwide players who fight for the territory occupied by computers and all the wires and infrastructure that brings them together.

      


  • 3G Capital Partners All Set In The Acquisition Mood

    The Brazilian private equity firm, 3G Capital Partners LP, is thinking of gobbling a food and beverage company to add to its market strength, and the company is well known for its well-studied acquisitions. The firm is out looking for potential targets that could give it control of even more of the world’s best-known consumer brands. News sources have confirmed that investors have pledged around $5 billion to a new takeover fund being formed by 3G which hints that the private equity firm will strongly hunt down a company which it could acquire to build its portfolio of products.


    Let’s take a sneak peek into the matter and try to decipher what’s in store for 3G in terms of inorganic growth in 2015.

      


  • Investment Ideas from Guy Spier - Part 2

    Part 2 of Guy Spier's interview with Tim Melvin about investment ideas.


    Tim Melvin - One of the investing concepts you discuss in the book is not to buy what somebody else is selling. Can you elaborate on that a little bit? Most people don’t realize that Wall Street is a huge sales machine.

      


  • Guy Spier New Interview Part 1

    Guy Spier Interview with Tim Melvin


    Tim Melvin – In your book, you talk about a series of meetings in New York where you would meet with a group of like-minded value investors on a regular basis. How did that influence you?

      


  • Price Is The Ultimate Gateway To Returns – Roumell Asset Management

    Price is what you pay, value is what you get. We all learned that from Warren Buffett who learned it from Ben Graham.


    Jim Roumell believes that price is the ultimate gateway to returns. Roumell believes you are far better off to sit with cash and wait for fat pitch opportunities.

      


  • How I Achieved 303% Return Investing in Stocks

    In the past six years my portfolio has grown 303% (25% average compound annual growth) by following the advice and approach to investing of the great value investors such as Warren Buffett and Ben Graham. Granted the overall market increased during the past 6 years, but I managed to beat the S&P index handedly by 157% – an average of 22% per year.


      

  • Understanding Circle of Competence and Knowing the Edge of Your Competency


    “You don't have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital”.

      


  • The 6 Most Influential Emotional Biases

    In the previous article, I introduced the most relevant cognitive errors that we make as investors, which are originated in faulty reasoning. But in reality, investors do not only deal with facts but with emotions. Here are the 6 most important emotional biases and how they affect us, together with what some famous investors have mentioned regarding these.




  • Peter Lynch - Stocks To Avoid

    The last article I wrote discussed the key attributes that Peter Lynch looks for in the “perfect stock” (here); this article will look at the other end of the spectrum – a few of the things Mr. Lynch says investors should avoid or keep an eye out for. As I did in the last article, I’ll add some of my own commentary where I think have something worthwhile to say.


    The hottest stock in the hottest industry

      


  • Buy U. S. Silica Now And Enjoy Triple Digit Profits From The Misplaced Fear Of Others

    Value investing legend Warren Buffett (Trades, Portfolio) says to “be fearful when others are greedy and greedy when others are fearful. Resource investing legend Rick Rule like to say that when it comes to commodity investing, you are either a contrarian or you are broke. The recent collapse in oil prices present us with an exceptional opportunity to combine that valuable advice and be a greedy contrarian investor today while buying the deeply undervalued and misunderstood shares of U.S. Silca Holdings (SLCA).

    Why does this opportunity exist?  


  • Why Should You Start Writing?


    Words for a distinguished style are impossible without having produced and shaped the thoughts, and no thought can shine clearly without the enlightening power of words.

      


  • Peter Lynch – The Perfect Stock

    If my memory serves me correctly, “One Up on Wall Street” was the first investment book I ever read. To this day, it remains among my favorites. In the book, Peter Lynch consolidates his investment philosophy (with countless examples) into a few hundred pages; it’s a great “how to” book for starters, while at the same time a good reference book for more experienced investors. Considering that Mr. Lynch managed the best performing fund in the world during his 13-year career (Fidelity Magellan Fund from May 1977 to May 1990), he’s worth listening to.


    In “One Up on Wall Street,” Mr. Lynch lists 13 attributes that he looks for in the perfect stock. I’m going to add some commentary on the few points where I think I have something useful to say (or even better for you, quote Mr. Lynch directly). With that, let’s get started:

      


  • How Did Coca-Cola Score on the Stalwarts Checklist?

    Last week, I used the Phil Fisher checklist to determine whether or not Apple (AAPL) was a good company to invest in. The company scored a 3.6 out of 5. The checklist feature is a way to help you dig deeper than a company’s P/E, PEG, P/B ratios and dividend yield (or as I like to call them, the “Fantastic Four”) to help decide whether or not a certain stock is a good investment. And yes, I am aware that there are other factors that come into the equation when investing.


    This week I decided to use the Peter Lynch Stalwarts checklist on Coca-Cola (KO). Unlike the Phil Fisher checklist, this one is more analytical and focuses more on the numbers and less on how the company’s work ethics and philosophies shape how the business is run.

      


  • Following Steven Cohen and Steve Mandel

    In this article let's take a look at the intrinsic value and try to compare it with the current stock price in the case of Williams Companies, Inc. (WMB), a $31.5 billion market cap company whose primary focus is to connect North America's hydrocarbon resource plays to growing markets for natural gas, NGLs and olefins.


    Not so bright

      


  • An All-Star Panel Discusses Berkshire Hathaway After Buffett

    Who can get the following people in a room:


    - Author Lawrence Cunningham

      


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