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

  • Which Sectors Have Strong Predictable Value Potential?

    As the U.S. stock market remains significantly overvalued, several gurus are investing in companies with strong predictable value. Such companies meet two of the most important criteria in Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s investing approach: undervaluation and high business predictability. While the co-managers of Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) valued companies with the price-earnings to growth (PEG) ratio, this article will focus on undervalued companies based on discounted cash flow models.

    Overview of DCF models: the theory and practical uses


  • 23 Questions With Brazilian Value Investor Gustavo Saiani

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

    I actually started out as a guitarist. From the age of 15 I took it really seriously. When time came to go to a university, I tried mechanical engineering and was very unhappy for two and a half years. Meanwhile, I started teaching music and performing. I also started a tiny business making and printing things like business cards using my father’s computer and printer. This was around 1995. One of my band mates studied graphic design, which up to that point I had not considered. Belatedly, I made the connection and decided to switch to graphic design. I was much happier but ironically stopped doing graphic design work and coasted along in school, devoting all my energy to music.


  • 13 Questions With Argentine Value Investor Santiago Lucca

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

    Everything begins in a very particular way. While I do not remember exactly how old I was when I had my first attraction to business, I can say it was at a very early age. I had the opportunity, with the help of my family, to make my first venture. Time passed and I became more and more interested in business. It was obvious that is, of course, where I wanted to go. Unfortunately, I did not have the opportunity Warren Buffett (Trades, Portfolio) had to buy my first three shares of Cities Service Preferred at age 11.


  • Warren Buffett Shares His Thoughts About the Election

    Lost in the commotion after the election was an interview of Warren Buffett (Trades, Portfolio) sharing his thoughts about the outcome. I was not aware of it. In the video posted below, interviewer Poppy Harlow asks questions covering President-elect Donald Trump’s proposals during the campaign, why Buffett supported Hillary Clinton, the stock market, and President Obama’s legacy.

    It’s clear Buffett tries to be as non-controversial as possible as he deflects questions intended to make him voice any fears about a Trump presidency. As hard as Buffett tries to deflect concerns about Trump’s temperament, he still admits that rogue nations like North Korea concern him.


  • Jokes, Analogies and Anecdotes in Warren Buffett’s Shareholder Letters

    In the previous article we collected the jokes that Warren Buffett (Trades, Portfolio) used in his shareholder letters. He also used a lot of analogies and anecdotes in his shareholder letters. He likes to use simple analogies to make his ideas easy to understand. These are of those he used in his shareholder letters.

    If a company sinks most of this money in other businesses that earn low returns, the company’s overall return on retained capital may nevertheless appear excellent because of the extraordinary returns being earned by the portion of earnings incrementally invested in the core business. The situation is analogous to a Pro-Am golf event: even if all of the amateurs are hopeless duffers, the team’s best-ball score will be respectable because of the dominating skills of the professional.


  • How Can Value Screener Record Trends Explain Market Valuations?

    As we approach the end of 2016, we can review the value screener record trends to further understand global market valuations and the predictability of companies. Each value screener lists stocks meeting specific criteria. Some value screeners list companies trading at deep discounts while others focus on the company’s predictability rank.

    Intelligent investor seeks net-net bargains


  • 23 Questions With Bakul Lalla

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

    I started investing for savings to maintain future purchasing power against my personal lifestyle inflation rate. Savings are primarily earmarked for future consumption such as retirement and college education. My background comes from a family of farmers migrating from the Asian continent to the African continent, and finally to the United States. Formal background is in electrical and computer engineering.


  • Procter & Gamble’s Turnaround Gains Momentum

    (Published Nov. 30 by Bob Ciura)

    Until recently, Procter & Gamble (NYSE:PG) stock was performing well throughout 2016. After closing out 2015 trading around $80, Procter & Gamble stock climbed as high as $90 by October. And then, things went south.


  • 15 Questions With Ney Torres

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

    I have a background in finance and a masters in real estate development. I started investing after reading a series of books (The Rich Dad, Poor Dad series) before getting into college 10 years ago, but it was too basic. Warren Buffett (Trades, Portfolio) helped with the rest.


  • Exclude Intangibles From Return on Capital Calculation

    Someone who reads my blog emailed me this question:


  • 17 Questions With Gaspare Civiero of the Value Investor

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

    I am a 30-year-old Italian management engineer and founder of www.theValueInvestor.it.


  • What Does 'Understanding' a Business Really Mean?

    Someone who reads my blog emailed me this question:


  • Warren Buffett’s Only Dividend Stocks With 4%-Plus Yields

    (Published Nov. 28 by Bob Ciura)

    Warren Buffett (Trades, Portfolio) is arguably the most legendary investor of all time. His investment firm, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), manages a massive stock portfolio.


  • Should You Keep Idle Funds in Cash, an Index Fund or Berkshire Hathaway?

    Someone who reads my blog emailed me this question:


  • November Buffett-Munger Bargain Newsletter is Ready for Download

    This month's Newsletter is about a company that both Warren Buffet and Charlie Munger (Trades, Portfolio) have invested in. Various issues obscure the true earnings power of the business causing the company to trade at less than 6x a conservative estimate of sustainable owner earnings.

    Get your copy of GuruFocus’s Buffett-Munger Bargain Newsletter now


  • Buffett Has Fallen Into a Value Trap Again

    Warren Buffett (TradesPortfolio) on airlines at the start of the century:


  • 19 Questions With Matt Millard

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

    I was very lucky to get started very young with an interest in math, finance and even investing before I turned 10. My Dad was an oil and gas entrepreneur, and we would discuss different mutual funds and companies and things regarding his business and life experience in the family home office. I was also very entrepreneurial and started with lemonade stands and car washes and eventually a lawn care business and several jobs. I wanted to invest in real estate and fortunately found a local mentor and learned and grew a lot on that experience. That led to putting together a business plan and buying a property after my first year of college and getting roommates and learning a lot very quickly through experience and not just leases, maintenance and improvements but many other little things as well.


  • 17 Questions With Tim Travis of T&T Capital Management

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

    When I was a teenager my Dad gave me the book the "Intelligent Investor" for me to read on a trip to Hawaii. For the first time investing, which had previously seemed a very abstract concept to me, made tangible sense. I found it so interesting that the relatively simple concept of value investing, which has been used by so many successfully, was the furthest thing from the status quo on Wall Street. I have a naturally contrarian personality so value investing was a great fit for me.


  • 23 Questions With Gabriele Grego

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

    I bought my first stock when I was 14 years old (Sony) and the investment was very unsuccessful, so I never tried again until I finished college. At the time I had studied in university about the efficient market hypothesis that basically stated, in its strong form, that it is impossible to generate alpha over time. A few years later I came across a book on Warren Buffett (Trades, Portfolio) and it was love at first sight with his investment philosophy, value investing. It just made sense.


  • Gurus Invest in Undervalued Biotech Stocks

    Among companies trading on the New York Stock Exchange and the Nasdaq, health care companies trade significantly below their median price-sales (P/S) valuation. At least five companies made the “Undervalued Biotech” screener, including Biogen Inc. (NASDAQ:BIIB), Gilead Sciences Inc. (NASDAQ:GILD), JAZZ Pharmaceuticals PLC (NASDAQ:JAZZ), Novo Nordisk A/S (NYSE:NVO) and United Therapeutics Corp. (NASDAQ:UTHR). As these companies present strong value potential to investors and shareholders, several gurus have invested in these companies.

    This article is Part 3 in a series of articles discussing how to visualize financial trends with interactive charts. In Part 1, we introduced interactive charts and explored preliminary features within the interface. We then explored a few predefined interactive charts in Part 2, including the income statement chart and the balance sheet chart.


  • A Boon for Berkshire

    Berkshire Hathaway (BRK.A)(BRK.B)'s holdings are finally on the upswing with the rest of the mega caps of the Dow and S&P 500. It’s finally starting to look like previous decisions by Berkshire management were prescient. For those who have not been initiated into the philosophy of Berkshire Hathaway, I would like to provide a simple introduction.

    CEO Warren Buffett invests in a conglomeration of private holdings that are based on value, economic moat and patience. Berkshire is listed as an insurance company on the surface, but it is so much more. The insurance portion of the company contains several private holdings including Geico and other reinsurance operations. The insurance operations are believed by many Berkshire investors and Buffett himself to provide a “hidden premium” in the book value, possibly indicating that a price-book ratio average of 1.25 to 1 is the true net asset value.


  • 22 Questions With Michael Nowacki

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

    When I was 19 years old I was trying to figure out what profession I wanted to pursue. A job with a sense of contribution was important to me, but I also wanted there to be an unlimited ceiling. For example, becoming a police officer, teacher or nurse is very rewarding, but the opportunity to move up the leadership ladder in those professions is very limited. I came across a biography on John D. Rockefeller, who was also from Cleveland, and was blown away by his philanthropic achievements. I knew immediately I wanted to become a philanthropist, but you need a fortune to do that. I read everything about the people on the Forbes 400 and how history’s great fortunes were created. I realized that nearly all the self-made ultrawealthy were either business owners or investors. I studied both and fell in love with investing. In investing I get my sense of contribution by helping people achieve their financial and investment goals.


  • 20 Questions with Dave Vitale

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

    I grew up in a small town outside of Madison, Wisconsin. My parents came over from Italy for opportunity. They were very entrepreneurial. My family had several small businesses. As a kid I had lots of energy and passion. I didn’t really care for school much at the time. I knew upon graduating high school I didn’t want to go to college right away, and I didn’t really want to do the family business thing, either. I started frequenting Barnes & Noble (NYSE:BKS) at the time and spent hours there reading books for free. I’m sure they weren’t very happy with me. I was reading business books knowing that I wanted to do something in business. It took many books before finally one really set me on fire and I accidentally stumbled upon it. I actually bought it and took it with me on my trip to Italy. It was called, "The Warren Buffett Way." It cost me $4.99. As soon as I picked it up it made total sense to me. It was like a light bulb moment. I was born skeptical and frugal so value investing really took hold. The rest is history.


  • 23 Questions With Mike Onghai

    1. How and why did you get started investing?

    There were two reasons: I was pretty shy, and I like the intellectual exercise of investing.


  • Review: When Genius Failed

    It has been a busy year between work, play, family, and of course the recent elections. My work responsibilities contain a wide-ranging number of facets, but in addition to research, client meetings, conference calls, conferences, trading, and other activities, I also attempt to squeeze in some leisure reading as well. While it’s sad but true that I find pleasure in reading SEC documents (10Ks and 10Qs), press releases, transcripts, corporate presentations, financial periodicals, and blogs, I finally did manage to also scratch When Genius Failed by Roger Lowenstein from my financial reading bucket list.

    When Genius Failed chronicles the rise and fall of what was considered the best and largest global hedge fund, Long Term Capital Management (LTCM). The irony behind the collapse makes the story especially intriguing. Despite melding the brightest minds in finance, including two Nobel Prize winners, Robert Merton and Myron Scholes, the Greenwich, Connecticut hedge fund that started with $1.3 billion in early 1994 managed to peak at around $140 billion before eventually crumbling to ruin.


  • Review: Quantitative Momentum

    Portfolio manager and researcher Dr. Wesley Gray is at it again, looking for ways to build that proverbial better mousetrap. I reviewed Gray’s previous book, Quantitative Value, which he co-wrote with Tobias Carlisle, and found it to be “solid piece of research that combines the successful value investing framework of Benjamin Graham and Warren Buffett with the analytical rigor seen in Jim O’Shaughnessy’s What Works on Wall Street and Joel Greenblatt’s The Little Book that Beats the Market.”

    Now, Gray’s follow-up book, Quantitative Momentum, aims to apply the same analytical rigor to momentum investing. Gray co-wrote Quantitative Momentum with Jack Vogel, with whom he published DIY Financial Advisor last year. That these gentlemen have managed to publish two well researched and highly-analytical books in back-to-back years is a feat in and of itself. But the book’s biggest contribution to the growing field of research supporting momentum investing is its assertion that momentum and value investing are essentially “two sides of the same behavioral bias coin.”


  • Arbitrage Trade With Valspar 

    The Sherwin-Williams Co. (NYSE:SHW) announced in March that it was acquiring The Valspar Corp. (NYSE:VAL). The deal is expected to close in the first quarter of 2017 with a total value of $11.3 billion, providing Valspar shareholders $113 per share in cash. The current stock price is $102.62 and that 10% premium offers a strong margin of safety in what I feel is an overheated market.

    Under the terms of the agreement, in the unlikely event that divestitures are required totaling more than $650 million of Valspar's 2015 revenues, the transaction price would be adjusted to $105 in cash per Valspar share. This would lower the total yield but still make this trade worthwhile.


  • Should You Follow Buffett and Bet on the Aviation Sector?

    Airline stocks have rallied hard over the last few days primarily because Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) bought stakes in several of the legacy carriers. Buffett has not invested in the aviation industry since the '90s, and his stance on the aviation industry has usually been bearish. It is no surprise that the stocks are rallying after the Oracle of Omaha made a big bet on the industry.

    While Buffett has only bought stakes in the legacy carriers, investors can benefit better from smaller companies in the sector that are growing at a good clip. JetBlue (NASDAQ:JBLU) is the best pick for investors looking to follow Berkshire Hathaway into the aviation industry.


  • Profiting From Uncertainty: Mark Boyar’s Group Finding Mispriced Financials, Media Stocks Pt. I

    Jonathan Boyar, part of the Boyar Value Group, will speak at the 2017 GuruFocus Value Conference. Get registered for the event here.



  • Jokes in Warren Buffett’s Shareholder Letters

    We all know Warren Buffett (Trades, Portfolio) is the greatest investor ever. He built his wealth buying stocks that sold below their intrinsic value. He is also an avid writer. He is very good at communicating his thoughts through conversational and humorous language and frequently tells jokes. These are some of the jokes he has told in his shareholder letters. If you know any of his jokes that are not included, please add them in the comments.

    The number that follows each joke is the year in which the joke appeared in a shareholder letter.


  • Warren Buffett Buys Airlines While Ray Dalio Sells Out

    Warren Buffett (Trades, Portfolio) caused a stir in the past month when he softened his previous negativity about airlines and bought shares of three. Ray Dalio (Trades, Portfolio), founder of the world’s largest hedge fund Bridgewater Associates, went the opposite direction from Buffett and sold out of the entire sector.

    Bridgewater oversees about $150 billion in assets and invests according to its understanding of the global economy and financial markets. Dalio is a big proponent of independent thinking and stresses radical transparency among the workers at his firm. An airline stock, Northeast Airlines, was his first security purchase ever, and it tripled, but only out of luck, he says in his book “Principles.”


  • Warren Buffett’s Simple Beneficiary Plan Generates Alpha

    In Warren Buffett’s 2013 letter to shareholders, he unveiled that his will outlines a simple investing plan for his beneficiaries:


  • 23 Questions With Thomas Macpherson of Nintai Partners

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

    I really started investing when our consulting firm was founded. The idea was to grow the book share by at least 25% per year. We created an internal fund that later converted to a charitable trust after the firm was closed.


  • Hey, Buffett! This Is the Better Airline Stock to Buy

    There has been a big vote of confidence from Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), which has bought stock in the big airlines like American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), United Continental (NYSE:UAL) and Southwest (NYSE:LUV).

    Did Buffett make the trades? Considering the size, probably not. However, with the collective market value of these companies reaching $110 billion, the best trade could be a smaller airline called Allegiant Travel Co. (NASDAQ:ALGT).


  • Anatomy of a Failed Investment

    Better to equivocate, when required, than to show conviction when it is not warranted.


  • Richard Snow Boosts Kinder Morgan, Cuts Macy's

    Richard Snow (Trades, Portfolio) is the founder of Snow Capital. Snow began his career investing the proceeds from the sale of the Snow family businesses. The guru’s largest third quarter trades are the following:

    The guru boosted his stake in Kinder Morgan Inc. (NYSE:KMI) by 16,330.30%. The trade had an impact of 2.52% on the portfolio.


  • Warren Buffett's Financial Engineering

    Investors often overlook the financial engineering that Warren Buffett (Trades, Portfolio) has employed throughout the years that helped build his personal fortune and the book value of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B).

    One such technique was to take a variety of positions in stock arbitrage trades using leverage to do so – in other words, borrowing money against his cash positions to trade for short-term gains.


  • 5 Business Lessons From a Self-Made Millionaire

    There are several ways in which you can invest in a business.

    The most obvious one is starting the business and then running it as the owner. However, most people find this way to be a little treacherous and unpredictable and thus prefer to invest in already successful businesses via venture capital investing, angel investing, the bond market and of course the stock market.


  • Warren Buffett Reports Buying 3 Airline Stocks, Cuts Walmart

    Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett (Trades, Portfolio) has updated his third-quarter portfolio Monday afternoon, revealing buys of airline companies.

    The three airline stocks purchased by him or one of his portfolio managers, Ted Weschler and Todd Combs, were American Airlines (NASDAQ:AAL) and Delta Airlines (NYSE:DAL) and United Continental Holdings Inc. (NYSE:UAL). Buffett has traditionally detested airline stocks, famously saying in 2002, "If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright."


  • Dividend Aristocrats in Focus Part 41: Procter & Gamble

    Procter & Gamble (NYSE:PG) is one of the most impressive success stories in the history of America, but the company was actually founded by two immigrants.

    P&G was founded by William Procter, an immigrant from England, and James Gamble, an immigrant from Ireland.


  • Does the Increase in Volatility Signal a Dangerous Market Environment?

    Over the last several weeks stock price volatility has increased significantly above norms. All of a sudden it is not uncommon to see stock prices moving 5%, 10% or more in a single trading day. Interestingly, this volatility is occurring both to the upside and the downside. Common sense would suggest that the intrinsic value of a business cannot change by those orders of magnitude from one day to the next. Logic dictates that the market is either inaccurately pricing the stocks now or it was incorrectly pricing them the day before.

    Stock price volatility is an unavoidable and undeniable reality. The stock market is an auction, and as a result, prices are continuously fluctuating up and down. Of course, that is stating the obvious because every investor in common stocks surely understands the associated daily volatility. However, my experience in talking with investors suggests that not every common stockholder embraces the complete unpredictability of stock price movements in the short run.


  • Should You Buy Net-Nets or 'Desert Island' Stocks?

    Someone who reads my blog emailed me this question:

    “Do you think it's better for a small-time investor (to) buy cigar butts (Net-Nets) or to buy great companies at fair prices?"


  • Expanding Your Circle of Competence

    Someone who reads my blog emailed me this question:

    “What is the best way to grow a circle of competence in a given field? Is it reading a bunch of annual reports? Is it trade magazines? Is there an online resource that provides detailed education on different industries?”


  • What Is Value?

    In a recent article one of the best writers on GuruFocus, Geoff Gannon, wrote the following: "The value investor in me – the stuff I learned from the books I read in my teens – rebels against the idea of paying a high (price-earnings) P/E for anything. That’s a mistake. It’s better to pay 30 times earnings for a company like Luxottica (NYSE:LUX) than 10 times earnings for a company like Weight Watchers (NYSE:WTW)."

    This caught my attention. In my previous article I discussed the difference between classic value investing and dynamic value investing. As I went back and thought about what I wrote, I realized that I omitted something that I should not have, which led to this article.


  • Third-Quarter Contest: Guess Which Stocks Warren Buffett Bought

    The quarterly contest to guess which stocks Warren Buffett (Trades, Portfolio) bought starts today.

    Buffett should release his portfolio by Nov. 15. You can guess which new stocks he added to it by entering three choices in the comment section below.


  • How to Avoid the Same Mistakes Your Heroes Made

    Someone who reads my blog emailed me this question:


  • Are Any of Buffett's Holdings Cheap Enough to Buy?

    Warren Buffett (Trades, Portfolio) is widely regarded as one of the greatest investors ever. Naturally, with this accolade behind him, investors try and copy his investment portfolio in the hope of replicating his performance. However, unlike other fund managers, Buffett’s holdings change rarely, and his top holdings have been a part of the Berkshire (NYSE:BRK.A)(BRK.B) portfolio for decades.

    What’s more, it is unclear if Buffett would buy the same holdings today based on their current valuations. Buffett is, at heart, a value investor and therefore he is unlikely to be willing to pay premium multiples to buy equities unless there is a guarantee that he will receive a higher return on his money as there was with Heinz (NASDAQ:KHC).


  • What You Can Learn From Warren Buffett’s Elephant Gun Strategy

    If there’s one thing Warren Buffett (Trades, Portfolio) likes, it is cash. Cash generation has always been a priority at Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), and over the years Buffett has successfully deployed cash reserves into select investment opportunities, all of which have combined to make Berkshire what it is today.

    Berkshire Hathaway is now generating tens of billions of dollars in cash every year, and Buffett likes to deploy this cash using what he calls an "elephant gun." Put simply, the cash elephant gun is simply a slug of cash used to buy the biggest and most attractive investment opportunities at the right moment. And when it comes down to it, waiting until it is the right moment to pounce is what Buffett is best known for without his elephant gun it's unlikely he would have been so successful over the years.


  • Some Stocks Are Almost Always Underpriced

    Someone who uses ValueLine asked me this question:

    “I understand that the ‘Line’ on Value Line reports is essentially a regression to the mean valuation. If we assume that the market is rational when averaged over time, the line is a reasonable valuation. This leads to an interesting result. If these are the average values investors are buying at over time, doesn’t that mean there is a huge premium put on the stability/dividend of (stock like) Nestle (XSWX:NESN)?”


  • Don’t Buy the Business That Is; Buy the Business That Will Be

    I’m going to assume here that you are a value “investor,” not a value “trader.” You are investing over the kind of timespan that Warren Buffett (Trades, Portfolio) invests over (buy and hold forever) or maybe just the kind of timespan Ben Graham invested over (buy and hold for a few years).

    If you look at the Graham-Newman letters to partners – they are really mostly just a list of positions – you’ll see the turnover rate is quite low. It may be 20% one year. It might be 40%. But it’s never 50%, 75%, 110% – like many mutual funds and many brokerage accounts are today.


  • Read Financial Results for 30 Years Instead of 10

    Warren Buffett (Trades, Portfolio) has talked about how he has sometimes read a stock’s annual report year after year – like IBM (NYSE:IBM) for sure and Coca-Cola (NYSE:KO) I’d assume – and then suddenly something clicks, and he sees the stock differently.

    It just becomes clear to him in a way it wasn’t before. The investment case becomes clear. What we are talking about here is “finding the right frame.” This is often the biggest part of any kind of problem solving. It’s easy to start brute forcing something – plugging in numbers and doing work – but that doesn’t lead anywhere. Figuring out a stock’s EPS estimate a few years hence to the last cent is not going to help much. Finding a new way to look at something familiar is the way to get a new insight.


  • A Classic Net Current Asset Value Opportunity

    Years ago, Benjamin Graham made a case for investing in stocks that trade below net current asset value.

    According to Graham, assuming that a company has a reasonable earnings track record and future prospects, paying no more than two-thirds of net current asset value per share ought to be a good deal for the investor. In the past, Warren Buffett (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) have used this investment strategy or variants thereof.


  • Warren Buffett Discusses Deal-Making, Investing, Smartphones in Bloomberg Interview


    Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) founder Warren Buffett (Trades, Portfolio) spoke with Bloomberg's David Rubenstein in an interview posted Wednesday. In a broad-ranging conversation, Buffett conversed on his love for his job, friendship, deal-making and opinions on taxes. He also gave advice to Buffett disciples on how to invest like him. Watch the interview below:


  • Top 5 NCAV Stocks

    (This article appeared first on The Stock Market Blueprint Blog.)

    In this edition of Watchlist Wednesday, we highlight five stocks trading below their net current asset values (NCAV).


  • Predictable Companies Gurus Are Buying

    GuruFocus’ All-in-One Screener confirms the high business predictability ratings for the following stocks, and at least five gurus are shareholders in those companies.



  • 3 Warren Buffett Stocks Fall to 52-Week Lows

    As U.S. stocks retreat 1.9% this month off their five-year highs, three stocks in Warren Buffett (Trades, Portfolio)’s portfolio fell to their 52-week lows.

    Buffett, the chairman and CEO of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) had 49 stocks in his portfolio at the end of the second quarter. It was valued at $129.7 billion and 39% of it was concentrated in consumer defensive stocks.


  • Aqua America: Slow and Steady

    For most investors, water utilities are as boring as it gets. Modest growth, modest yields. Don’t expect much more. You certainly won’t be able to buy a new house or car investing in water utilities and, the monopoly strength garnered by owning them doesn’t typically result in as much share price appreciation as other monopoly-type firms. So it is understandable that you pass these companies up.

    That being said, times do change. The strategic importance of water, improved operating efficiencies, scale advantages and broad geographic diversification is making some of these companies far more attractive, not to mention the dividend and price stability they offer as investments.


  • Time Warner Acquisition Balloons Debt at Warren Buffett Castoff AT&T

    AT&T’s (NYSE:T) proposed merger with Time Warner Inc. (NYSE:TWX) will add to the telecom company’s sizable debt burden, which already grew almost a year and a half ago when it leveraged to make another large acquisition.

    The merger, announced Saturday and approved unanimously by the boards of both companies, would unite the second-largest telecommunications company in the U.S. and a global media and entertainment company. Executives have promised that the integration will make more premium content immediately available across mobile devices and provide bundled mobile broadband and video to customers.


  • Even Buffett Can't Beat an ETF and Other Nonsense

    WSJ columnist Jason Zweig is a common target for my rebuttals. Ironically mostly because his writing is so amazing I religiously read his pieces. In the "The Incredible Shrinking Fund Manager"s he argues the Alpha delivered by star managers can be explained by them leaning on factors that have been identified to do better by academics. This culminates in the bottom line:


  • Stars Aligning for JPMorgan?

    As Wells Fargo (NYSE:WFC) continues to pick up the pieces after the debacle, JPMorgan’s (NYSE:JPM) Jamie Dimon was recently putting on his best Warren Buffett (Trades, Portfolio) impersonation at the Economic Club for a possible open position on the Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) portfolio. Yes, this interview and Buffett’s subsequent praise has been covered elsewhere, but companies aligning with Buffett’s operating philosophies have at times done so for the very reason of trying to get a spot on the team.


  • Bill Gates' Largest Investments of the Year

    Bill Gates (Trades, Portfolio) is one of the smartest businessmen in the world. He founded Microsoft (MSFT) and grew it to the world's largest software maker and monopolized the PC world. Gates was the world's richest man for 15 consecutive years. The following are the best performers of his most recent investments.

    Caterpillar Inc. (CAT) with a market cap of $50.61 billion has gained 31.6% year to date. The guru's stake represents 1.93% of the company's outstanding shares and 5.08% of his total assets.


  • Buffett’s 3 Categories of Returns on Capital

    “A truly great business must have an enduring 'moat' that protects excellent returns on invested capital.”

    Warren Buffett (Trades, Portfolio), 2007 Shareholder Letter


  • American Competition: Nike vs. Under Armour

    Guru investors love these brands, and with both stocks off big in 2016, it’s possibly time to make a trade or further your position because both companies are in a dominant position. This is an all-American athletic apparel competition.

    Nike (NYSE:NKE)


  • The Benefits of a Capital Gains Dividend

    I have written about the importance of dividends to investors many times before. To reiterate, dividends are a vital tool for wealth creation over the long term, and there is no substitute. Well, there is no substitute unless you create your own dividends.

    Creating your own dividends is not a complex process. Finding a company to invest in that has the traits you need to be able to build a portfolio where you create your own dividends is the hard part.


  • Headline Risk Is Still Poison for These Stocks

    Stock picking is hard. Most institutional and retail stock pickers underperform the indexes. But every investor could improve the likelihood they beat the market by following one rule:

    Avoid high profile, controversial companies where an adverse news event could produce an overnight price collapse.


  • Asymmetric Allocation: Saints & Sinners Market Neutral Trade With Tandy Leather & Newell Brands

    Ever had a good idea to invest in, but little money to invest? Or have you ever found a good long or short but you were killed when the whole market moved in the wrong direction? There is a solution called market neutral trading.

    This strategy is used by big hedge funds, but I am offering this “secret” for a cost of a click and a few minutes of your time. Market neutral trading involves longing (buying) a position and shorting (selling) another position for stocks in the same industry or sector. If you like to learn more about market neutral trading, you can read more about it here.


  • Lemon Juice, Knights and Hybrids

    Being a hybrid maker off and on over the years, I'm very comfortable with the idea and have been the subject of quite a few pretty good mashups myself.” – David Bowie


  • Van Den Berg's Best-Performing Buys

    Arnold Van Den Berg has handily beaten all of the indices since founding Century Management in 1974. He manages a portfolio composed of 46 stocks with a total value of $619 million. The following are the best performers of his investments.

    Agnico Eagle Mines Ltd. (AEM) with a market cap of $10.2 billion has performed 74.7% year to date. The stake represents 0.08% of the company's outstanding shares and 1.49% of Van Den Berg's total assets.


  • Jerome Dodson Goes 2 for 2 in 3rd Quarter

    Jerome Dodson (Trades, Portfolio) of the Parnassus Fund acquired two new holdings and sold out of two others during the third quarter.

    Dodson founded Parnassus Investments in 1984. The firm has a contrarian approach and invests in companies with wide moats or strong competitive advantages, have long-term relevancy, have good management and are trading at a significant discount to their intrinsic values.


  • These Guru-Led Stocks Consistently Beat the Market

    A great way to achieve gains in line with the investing masters is to join them.

    I am a proponent of investing in the public securities of these guru investors. The problem is that not all of these investors beat the markets. Sure an off-year or two is acceptable, but it is pointless to invest in them if they cannot beat the markets in the long run, when more money can be made in a low-cost Standard & Poor's 500 fund.


  • Wells Fargo Reports Strong 3rd Quarter Earnings

    During the third quarter, Wells Fargo & Co. (NYSE:WFC) reported $5.6 billion in net income and diluted earnings per share of $1.03. These values represent a 2% increase and a 1% increase from second quarter values, respectively. Even though the company suffered over $185 million due to the customer account scandal, Wells Fargo increased their revenues by 2% from third quarter 2015.

    Brief summary of earnings report


  • The Rule That’s Helped Me Avoid Losing Money

    Warren Buffett (Trades, Portfolio) is famous for his first two rules of investing: "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." These rules may seem simple enough on the face of it, but few investors actually follow them.

    Buffett’s first two rules are based on the idea that an investor should always look to make investments that are unlikely to result in permanent capital impairment. To put it another way, investors should always seek to invest in stocks that are not likely to go to zero, wiping out shareholders (I say likely because it is never possible to predict with any certainty whether a company will collapse or not).


  • How Can You Beat the Market?

    The investing world is full of tough competition. Better results require hard work. Sometimes even hard work is not enough.

    If you are looking for investment opportunities in the same places as everyone else, it’s difficult to get a competitive advantage.


  • Gurus Buy Stocks With Low P/E Ratios

    Gurus are buying stocks that are trading with low price-earnings (P/E) ratios. Some are greatly undervalued, according to the DCF calculator.

    Polaris Industries Inc. (PII) with a market cap of $4.74 billion is trading with a P/E ratio of 12.85 and a price-sales (P/S) ratio of 1.05. According to the DCF calculator the stock has a fair value of $162.9 while it is trading at about $74.03 with a margin of safety of 55%. The price has dropped by 39% during the last 12 months and is now 40.49% below its 52-week high and 9.19% above its 52-week low.


  • Buffett Snaps Back at Trump's Tax Comments With Facts

    Warren Buffett (Trades, Portfolio), mastermind of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) and world's fourth-richest person, issued the following statement today denouncing Trump's remarks at last night's presidential debate that Buffett avoids paying taxes in the same way he does:

    Some Tax Facts for Donald Trump


  • Is Benjamin Graham Still Relevant?

    Are the principles laid out by Benjamin Graham no longer of any use in today’s world?

    There are some who believe this statement to be true. Indeed, there are few if any well-known investors who follow Graham’s net-nets investing rules today. The most prominent value investors such as Warren Buffett (Trades, Portfolio) and Seth Klarman (Trades, Portfolio) use intrinsic value calculations rather than a net-nets approach to find bargains in the market.


  • 7 Guru Stocks Trading at Low Price-Earnings

    Gurus are buying these seven stocks that are trading with a very low price-earnings (P/E) ratio. Most of them are greatly undervalued, according to the DCF calculator.

    Shinhan Financial Group Co. Ltd. ADR. (NYSE:SHG), with a market cap of $17.27 billion, is trading with a P/E ratio of 8.29 and a price-sales (P/S) ratio of 2.53. According to the DCF calculator, the stock has a fair value of $47 while it is trading at $36.41 with a margin of safety of 23%. The price has risen 3% during the last 12 months and is now 8.43% below its 52-week high and 25.21% above its 52-week low.


  • Tech Companies Among High Value Stocks

    Among companies trading on the New York Stock Exchange (NYSE) and the Nasdaq, information technology companies made multiple value screeners.

    Two companies, Wipro Ltd. (NYSE:WIT) and Baidu Inc. (NASDAQ:BIDU), made four and three value screeners as of Oct. 4. This suggests that technology companies offer high value potential in the short term.


  • 21 Questions With Ugo Ume

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

    About 5 years ago I enrolled at the University of Arizona. As a freshman, I was worked at a deli on campus. One of my colleagues told me he ‘invests’ $100 thousand of his money. A month later, he had more than ‘tripled it’ $360 thousand. My jaw dropped. I had saved $4,000 by negotiating cell phone prices down on craigslist and then subsequently selling them market price on eBay both in high school and also my freshman year of college – a strategy I later learned to be a term in finance called Arbitrage. I said to myself, I have $4,000 today, if I conservatively double my money every month until I graduate, I can retire without ever working a post-college job. Most inexperienced investors would believe these ego-stroking stories, but as I read more about finance, I realized that there is absolutely no way he turned $100 thousand into $360 thousand in a few weeks. Also, why would someone be working for $7.65 per hour if they were doing so well? I applied for a Scottrade account about a month after on my 18th birthday. So my interest in investing was effectively by chance.


  • All Investors Should Own Some Deep Value Stocks

    There are many different ways of building an investment portfolio; ultimately how you build your portfolio will depend on your investment objectives as well as appetite for risk.

    Dividends or dividend stocks are usually the foundations of any portfolio no matter what your attitude on risk or investment objectives. Indeed, you can’t go wrong with a steady stream of dividends to improve your portfolio’s returns when times are good and generate a steady income when times are bad. Alongside dividend stocks, there’s one other class of equities that should have a place in every portfolio – deep value stocks.


  • GuruFocus Podcast Episode 2: Wells Fargo, Scandal & Investors With Bill Smead

    The second episode of the new GuruFocus podcast is available for listeners.

    In this episode, GuruFocus talks with noted investor Bill Smead of the $2.4 billion Smead Capital Management. The conversation covers Wells Fargo’s creation of millions of fake bank accounts that incurred a $185 million fine, the ire of congress and a warning from Buffett that trust may be difficult to regain.


  • Warren Buffett Remains Bullish on Stocks

    As of Oct. 4, the U.S. stock market’s total market-cap / gross domestic product ratio is 122.2%. Although the market valuation slightly decreased since the Sept. 1 valuations, the U.S. stock market remains significantly overvalued. Based on historical valuations, the expected market return is 0.1% annually at the current valuation level, including dividends.

    Buffett’s market valuation metric


  • 21 Questions With Aidan Sweeney

    Aidan Sweeney is the founder of iValueInvesting.

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

  • Value Down Stream: Valero, Phillips 66

    There’s no debating that oil companies have been put through the shredders these past months, their assets deemed less and less valuable by the main stream market, and for good reason. A supply surplus and advances in technology have taken crude oil off the endangered species list, but the sector still presents some of the best deals in the market for down stream refiners and fully intact oil companies.


  • John Hussman's Best-Performing Investments

    John Hussman (Trades, Portfolio) is the president and principal shareholder of Hussman Strategic Advisors, the investment advisory firm that manages the Hussman Funds. He manages a portfolio composed of 183 stocks with a total value of $654 million. The following are the guru’s second-quarter picks with the best performances.

    MasTec Inc. (MTZ)


  • 12 Questions With Validea Capital Management John Reese

    John Reese is founder and CEO of Validea.com and Validea Capital Management LLC. Validea Capital is the investment adviser to an actively managed equity ETF. Reese has been running quantitative models since 2003. He is a graduate of Harvard Business School and MIT, published author and investment columnist. Reese holds two patents in automated stock analysis.

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


  • Learning From Warren Buffett's and Charlie Munger's Biggest Mistakes

    Over the weekend, I re-read "Poor Charlie’s Almanack," and wrote an article about what I learned from Charlie Munger (Trades, Portfolio) and Ted Williams, which can be read here. While I was reading the book for the fourth time, I decided to focus my attention on the mistakes that Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) have made throughout their careers. I wanted to learn more about their mistakes because they are two of the most successful investors of all time. I do not want to repeat the same mistakes in my career, and I also wanted to share their knowledge with other investors so they would learn from their mistakes as well.

    There are two types of mistakes that both Munger and Buffett have made during their careers.


  • Rite Aid Is a Solid Risk Arbitrage Trade

    Rite Aid (NYSE:RAD) is the third-largest drug store retailer in the U.S. and is the target of an acquisition by Walgreens Boots Alliance (NASDAQ:WBA).

    A few months ago, CNBC reported that the FTC is likely to approve the Rite Aid sale to Walgreens Boots Alliance. On Sept. 12 Walgreens provided an update, per the requirements stated by the U.S. Federal Trade Commission; for the acquisition to be closed, both must divest between 500 and 1,000 of its stores. That’ll leave them around 12,000 total stores.


  • Ruane Cunniff Cuts Allergan, Berkshire, IBM

    Ruane Cunniff (Trades, Portfolio) is a value investor focused on the intrinsic value of business. It manages a portfolio composed of 118 stocks with a total value of $10.499 billion. During the second quarter the guru traded the following stocks.

    The investor reduced shares in Berkshire Hathaway Inc. Class A (BRK.A) by 19.52% with an impact of -2.78% on the portfolio.


  • Where Are the Customers' Yachts?

    Earlier this year, I attended my first Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) meeting that was held in Omaha. During the meeting, Warren Buffett (Trades, Portfolio) described a book, which he claimed that he read back in 1940 when he was 10 years old, called “Where are the Customers' Yachts?" or "A Good Hard Look at Wall Street."

    The book is a fairly fast read at 170 pages. The book was originally published in 1940. It is interesting to note that certain human behavioral tendencies remain the same some 76 years after the book was originally published. It is also clear that our stock analysis through modern information and technolgy has evolved 10-fold compared to the information that was being used nearly eight decades ago.


  • 15 Questions with John Szramiak of Vintage Value Investing

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

    I got started investing in a sort of roundabout way... actually, I owe it all to Google. In middle school and high school I was probably on Google for several hours every day - searching different topics and learning about whatever I was curious about that day (it was basically my equivalent to hanging out in a library and trying to read every book). I loved Google the search engine and how you could think of any question and then find the answer to it within a few seconds. And I also loved Google the company - its vision, its culture, its philosophy, its other products, and its success.


  • 15 Questions With Eric Schleien of Eisco Value Partners

    1. How did you get started investing?

    When I was 14 years old I walked into a Barnes & Noble with my mom and decided to be a big boy and not go to the teens section and I went to the business section instead. Found a book called ​"​The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of​." The book had basic financial concepts in it but everything changed for me when I saw a compound interest graph and became obsessed of how to invest. So I started reading about different investors mentioned in the book but the only one that truly made sense to me was Warren Buffett (Trades, Portfolio). Then I started reading books he read when he was younger and down the rabbit hole I went!​


  • Determining the Best Growth Rates for a Discounted Cash Flow Model

    Warren Buffett (Trades, Portfolio) once likened valuation to Aesop’s fable, “a bird in the hand is worth two in the bush.” The trick though, he tells us, lies in figuring out how many birds are in the bush, when they will appear, and our certainty of the birds’ existence. Let’s take a closer look at a key valuation input, growth rates, and see if we can better determine how many birds are in the bush.

    Growing Pains


  • Wallace Weitz's Largest 2nd-Quarter Trades

    Wallace Weitz (Trades, Portfolio) manages a portfolio composed of 68 stocks with a total value of $2.663 billion. During the second quarter the guru’s largest trades were:

    The investor bought 4,268,970 shares in Liberty SiriusXM Group Class C (LSXMK) with an impact of 4.95% on the portfolio.


  • 15 Questions With Wally Weitz

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

    As a kid (12) I tagged along to a lunch with a stockbroker. Something about his pitch intrigued me and I bought “How to Buy Stocks” by Louis Engel on the way home. I bought my first stock a few weeks later and was hooked. I went through a charting phase in high school and then discovered Ben Graham while at Carleton College. My only formal training was my economics degree from Carleton.


  • Flowers Foods a High-Yield Risk Worth Taking

    There are certain times when being a value investor also implies taking a contrarian approach. However, the terms “value investor” and “contrarian investor” are not always synonymous.

    On the other hand, when faced with a significantly overvalued marketplace like we see today with blue-chip dividend growth stocks, value investing and contrarian investing tend to become one and the same.


  • 5 Lessons From Warren Buffett

    Warren Buffett (Trades, Portfolio) is both one of the world’s greatest investors and a figurehead of the investing world. Not only has Buffett achieved exceptional returns for his investors and shareholders over the years, but his wisdom and teachings have helped educate thousands of other investment managers and individual investors over the past four decades.

    The lessons Warren Buffett (Trades, Portfolio) preaches all have their roots in value investing, but over the years Buffett has developed his own style of value investing, building on the roots his former teacher, Benjamin Graham, laid down 80 years ago.


  • Warren Buffett Wants You to Read These 3 Letters

    Pivoting away from a scandal involving one of his biggest holdings, Wells Fargo (NYSE:WFC), Warren Buffett (Trades, Portfolio) took some time to discuss a philanthropic initiative he created with Bill and Melinda Gates called The Giving Pledge.

    The pledge calls for the world's billionaires to donate a large majority of their wealth to charities.


  • Buffett Stock Wells Fargo Falls Close to 52-Week Low Post-Scandal

    Wells Fargo, a stock beloved by Warren Buffett (Trades, Portfolio), became his only holding besides Sanofi (NYSE:SNY) to fall to its 52-week low price Wednesday after it reported fraud involving fake accounts in its commercial banking. Rare pricing windows on Buffett stocks usually drawn investors, but the impact of the scam at Wells Fargo may obscure Wells Fargo's attractiveness.

    According to the Consumer Financial Protection Bureau, Wells Fargo illegally opened more than 2 million unauthorized deposits and credit card accounts, spurred by sales targets and compensation incentives. The bureau has already slapped a $185 million fine, its highest ever, on the bank.


  • 15 Questions With Justin Foeppel

    Justin Foeppel is a financial analyst and value investor based in Palo Alto, California.

    How did you get started investing? What is your background?


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