Warren Buffett

Warren Buffett

Last Update: 2015-02-17

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

  • 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, Interview with the oracle of Montreal, 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.


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