# What would Buffett buy in Australia?



## mb1 (4 February 2007)

Just thoughts...

Australia doesnt have the non durable goods companies like in the US, P&G, Colgate, Snickers, Coke, Gillette. Companies he knows that will be around.

He avoided the tech boom. Would he avoid the mining boom?

Buffett says he buys into companies that he understands, and has good management. 

All the everyday houshold items in Australia are all US based. Johnson Johnson, P&G, McDonalds etc etc.

So what would he buy? Is Australias main industry mining and resources?

If he doesnt understand technology stocks, IBM, Microsoft, Apple...
How would he understand the mining industry??

Its a total different ball game in australia isnt it.


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## constable (4 February 2007)

*Re: Hmm what would Buffett buy in Australia??*



			
				mb1 said:
			
		

> Just thoughts...
> 
> Australia doesnt have the non durable goods companies like in the US, P&G, Colgate, Snickers, Coke, Gillette. Companies he knows that will be around.
> 
> ...



He would say, "Ballarat is a great place,i'm going to by a house there because there is an obvious rental squeeze goin on there! Why hell i might by the whole town!"


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## dhukka (4 February 2007)

*Re: Hmm what would Buffett buy in Australia??*



			
				mb1 said:
			
		

> Just thoughts...
> 
> Australia doesnt have the non durable goods companies like in the US, P&G, Colgate, Snickers, Coke, Gillette. Companies he knows that will be around.
> 
> ...




Take a look at Clime Assset Management  (CAM). The Managing Director Roger Montgomery is about as close to Warren Buffet in investment philosophy as you'll get. I think two of their biggest holdings right now are CCP and TRS which have done very well of late.


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## son of baglimit (5 February 2007)

clearly he doesnt know ballarat well - the 1st cool change of winter and it snows and the place is an ice block - cold miserable bugger of a place.

nice during the better weather though.

cheerio


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## tech/a (5 February 2007)

Just buy the whole country.

He'd probably run it better.
Perhaps a joint venture with Gates/Packer/Murdoch and Branson.


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## nioka (5 February 2007)

*Re: Hmm what would Buffett buy in Australia??*



			
				constable said:
			
		

> He would say, "Ballarat is a great place,i'm going to by a house there because there is an obvious rental squeeze goin on there! Why hell i might by the whole town!"



Spent 2 years living there in an air force hut in the 50's. Missed the summer the first year, I was having a haircut at the time.  The second summer did last for amonth of very hot north westerley winds. The only good thing I remember about the place was the lake but I can remember rowing training there in the snow. Not for me.


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## constable (5 February 2007)

Yep ballarat's cold now but give it another couple years of global warming and it just might be comfortable! Cmon even Mr Buffett knows that!


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## Realist (5 February 2007)

I'd say he'd buy Woolworths, Westfield and Fosters if they were cheap (which they aint).


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## JoshyJ (5 February 2007)

Realist said:
			
		

> I'd say he'd buy Woolworths, Westfield and Fosters if they were cheap (which they aint).




Totally agree. Also he would of bought Arnott's when it was Australian or Cadbury.


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## jkool (5 February 2007)

This is an interesting question I have asked myself number of times because Buffetts principles make lots of sense to me. 

I dont think Buffett would buy in today's Australie mainly due to ASX hitting historical highs and companies complying to his long term investing rules (and which would make sense to add into BRK's portfolio sizewise) are at big premiums. 

If we forget about the size, than I can see number of possible candidates but only at the right price: 
BKL (even though its a health sector company), ARP, HVN, CML and WOW. 
All these are long established outstanding businesses having big "moat" withing their industries and being managed (well most of them) by an owner (ie managements hold large stakes in the company). 
Than there are definitely few value investing candidates (he calls them "cigarbuts") to be had, which nobody wants to touch with a stick nowadays. I wont really name no names but for instance look at some winemakers.

Other may add few other candidates I guess, these are the ones I looked at hard enough. 
You may also possibly find some more leads if you look into GOW's investing portfolio. 

jkool


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## jkool (5 February 2007)

Realist said:
			
		

> I'd say he'd buy Woolworths, Westfield and Fosters if they were cheap (which they aint).




Good companies but I dont think the Oracle is all that keen on real estate (ie. Westfield) shares.


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## The Barbarian Investor (6 February 2007)

How about as well as Woolies...Commonwealth Bank(or one of the Big 4)?


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## nioka (6 February 2007)

Maybe he is waiting for Howard to take over the rivers, privatise the water and then take that over. It is the only thing left for this country to sell.


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## nizar (6 February 2007)

I reckon he should buy WA, blow it up, and sell it


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## ROE (7 February 2007)

He buys Australia's Debt and make us slaves


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## rico01 (7 February 2007)

I think he would buy  in keeping with his philosphy  of buying $1 dollar bills for less than a  Dollar, It would be MFT Currenttly 90 c,but with A net Tangible assets of $1.14 and a div/ yield of 8.4% or 7.6 cents per share. Yup thats what I think he would buy  

But hey you guys do yur own maths


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## Judd (7 February 2007)

The Oracle would not buy anything.  He will simply sit and wait for companies to come to him with an offer to sell.  He will then rip the books apart to see if it is worth his while and, if so, pay them out. His organization is probably the ultimate private equity group.


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## wayneL (7 February 2007)

Judd said:
			
		

> The Oracle would not buy anything.  He will simply sit and wait for companies to come to him with an offer to sell.  He will then rip the books apart to see if it is worth his while and, if so, pay them out. His organization is probably the ultimate private equity group.




Sooooooooo..... that means its a publicly listed private equity group?


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## Judd (7 February 2007)

Why not?  I had to laugh when I saw the organisations listed as its "competitors."

http://www.hoovers.com/free/co/fact..._cat=OVR&cm_pla=CO2&cm_ite=berkshire_hathaway

Then I don't see many of the Co's subsidiaries listed as public companies. Like the inference in Point 4 of the Owners Manual.

http://www.berkshirehathaway.com/


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## value investor (6 March 2007)

He would buy nothing. 
Otherwise he would have bought something.


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## YOUNG_TRADER (6 March 2007)

A barbie? (The cooking kind, not the Doll  : )


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## nioka (6 March 2007)

During the war it was a common thing for the spivs to sell to the yanks shares in the Sydney harbour bridge. I wonderrrrrrrr?


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## Out Too Soon (6 March 2007)

Everything ASX200 he could atm.


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## PJ83 (24 March 2007)

Firstly Buffett does not invest much overseas however this is changing. 
At the right price, he would buy virtually anything and wouldn't we all. I'd buy even the most ramshackle house if I could get it for $5. 

So once the price is right...
He's interested in companies with monopolies ie ASX is a perfect example. But maybe not at its current price.


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## Smurf1976 (24 March 2007)

tech/a said:
			
		

> Just buy the whole country.
> 
> He'd probably run it better.
> Perhaps a joint venture with Gates/Packer/Murdoch and Branson.



Only trouble is Murdoch would have us all dumbed down to the point we can't actually use any of Gates' software...


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## mmmmining (24 March 2007)

Kings Cross!  It is a cash COW!


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## laurie (24 March 2007)

Religion and Australian Post

cheers laurie


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## niknah (25 March 2007)

value investor said:


> He would buy nothing.
> Otherwise he would have bought something.




Berkshire only just purchased their first non-US company just last year(some israeli co.), and they said they would continue to look for overseas companies in the future.

If Warren Buffet was to buy something in Australia, it could be a LPT which is where he puts his personal wealth in the US sometimes(called REITs there).

But Berkshire Hathaway may want to buy the AUD, they have an incredible amount of cash(I presume it's in USD)


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## Jimminy (28 March 2007)

If Buffett was to buy an ASX share in a company, it would be Toll. No doubt about it.

They are a price maker. He'd like that.


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## mmmmining (28 March 2007)

Buy WA government, it is a no-brain deal.


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## Sean K (28 March 2007)

Maybe QBE.

I do agree that the WA gov would be a bargain at the moment. Only costs a lunch here and there to get a mining lease approved...


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## Buffettology (1 April 2007)

Hi guys, first post, guess by my name you can tell I am interested in this thread! 

Good thread, I have been thinking the same for the last while.  

I believe he would invest in such companies as Woolworths and Harvey Norman.  Even looking at companies such as Brambles.


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## Buffettology (9 April 2007)

*Re: Hmm what would Buffett buy in Australia??*



dhukka said:


> Take a look at Clime Assset Management  (CAM). The Managing Director Roger Montgomery is about as close to Warren Buffet in investment philosophy as you'll get. I think two of their biggest holdings right now are CCP and TRS which have done very well of late.




How about TRS, absolutely incredible performance since it has been listed!!!!!!

As for CAM, definately a good option, very close method of investment to Buffett himself, and has done quiet well also.  What I dont get, is why its P/E ratio is below 8 at the moment?  Incredibly low?????

MMA is another company of which follows Buffetts principles.


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## wbooo (17 August 2007)

He would buy Westfeilds, Cochlear and Corporate Express but not at these prices.


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## Buffettology (17 August 2007)

I beleive the top companies he would go for are:

Blackmores, JB Hi-Fi, Woolworthes.

Though of course, not at these prices!


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## wayneL (8 August 2008)

Not an Australian stock, but one of the UK "Buffett Model" mutual funds has just taken a 2% position in Exxon-Mobil (XOM)

Technically, it looks like doggie-doodie. Any Buffettologists care to comment on XOM?


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## Sean K (13 October 2008)

Probably WOW at the moment, maybe insurance ....

I'd say he's been buying a few things over the past few weeks.


A quote of his made on CNBC a few weeks ago:

"You know, five years from now, ten years from now, we'll look back on this period and we'll see that you could have made some extraordinary (stock market) buys. That doesn't mean it won't get more extraordinary a week or a month from now. I have no idea what the stock market is going to do next month or six months from now. I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well."


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## doctorj (13 October 2008)

kennas said:


> Probably WOW at the moment, maybe insurance



I really doubt insurance - the insurance cycle will be soft across all types of cover for a while, yet there is a good argument for upward pressure on reinsurance premiums as the availability of funds is tight.  Investment returns on premiums will also be on the decline as interest rates fall around the world stock markets continue to suck and dividends fall.


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## Tysonboss1 (13 October 2008)

AHE


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## Sean K (13 October 2008)

Tysonboss1 said:


> AHE



How's the growth outlook for new car sales in this environment? I would have assumed poor.....


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## Tysonboss1 (13 October 2008)

kennas said:


> How's the growth outlook for new car sales in this environment? I would have assumed poor.....




Most of there new dealer ships are in QLD and WA so I think with the combined effect of their strong economies and perhaps falling interest rates that they should atleast be able to maintain sales, not to mention their transport division is growing strongly with the expansion into refrigerated transport on the east coast.

The main reason I believe buffet would be interested is because it has been way oversold and with a dividend of 14% backed by healthy cash flow and a pe of >5 I think it's a good addition to any portfoilio.

They also have many complementory income streams such as transport, vechicle parts, servicing etc, etc


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## doctorj (14 October 2008)

Perhaps we're asking the wrong question - what _is _Buffet buying?  Why bother trying to emulate, when you can just copy?

http://www.hispanicbusiness.com/finance/2008/10/13/making_money_the_warren_buffet_way.htm
http://economictimes.indiatimes.com...rything_for_investors/articleshow/3588051.cms
http://everythingwarrenbuffett.blogspot.com/2008/10/charlie-rose-interview-with-warren.html


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