Warren Buffett

[Tysonboss1]

I'm 3/4 way through the book written by his daughter-in-law, Mary Buffett, "Buffettology" - an easy and interesting read IMO.

Mr Bo

Next on the book club list,

The intelligent investor by ben graham

then

security analysis by ben graham.

 

[medicowallet]

Interesting view. It hasn't been my impression of people on this forum on the whole. Others may like to comment on this?
I'd have thought rather it was simply a preference for some people to take a technical approach.

In my opinion, it depends upon how you got the capital.

Why would I want to chart etc, and do something which may produce better results, when I could spend my time more productively elsewhere.

Quite a few people use shares to diversify their investments.

eg My business provided the capital for me to diversify into shares. I invest this, without charting. I can make much better return on investment in a business, but want to spread risk, and don't have the time to watch stocks all day.

 

[Peter2047]

Didn't Warren said that the derivatives are weapon of mass distruction ? But his company is also invested in derivatives.

 

[Tysonboss1]

Didn't Warren said that the derivatives are weapon of mass distruction ? But his company is also invested in derivatives.

I think only about 2% of berkshires assets are in derivatives.

And yes he does believe they are a weapon of mass destruction, especially when used in a speculative manner.

How ever the way warren makes calculated entries into the derivative markets is almost an extension of his insurance and underwriting businesses.

Warren also is very skilled at valuing securities so he can value derivatives in much the same way as he values businesses and this gives him the ability to sell option is a very rational safe manner.

 

[robusta]

Well looks like Todd Combs is the first "annointed one"

http://www.berkshirehathaway.com/letters/2010ltr.pdf

 

[ROE]

I think only about 2% of berkshires assets are in derivatives.

And yes he does believe they are a weapon of mass destruction, especially when used in a speculative manner.

How ever the way warren makes calculated entries into the derivative markets is almost an extension of his insurance and underwriting businesses.

Warren also is very skilled at valuing securities so he can value derivatives in much the same way as he values businesses and this gives him the ability to sell option is a very rational safe manner.

Actually Warren doesnt price these securities and insurance underwriting
it's Ajit Jain. This guy is very good at pricing risk...When he tell Warren to underwrite something Warren will act without question.

Warren is pretty good himself but he has many highly skillful people working for him and associate with many great investors..

Taking advices from these guys aren't bad ...they have timeless and priceless principles that are given to us for FREE and if you practise them you too can do very well in the market.

Walter Schloss Lou Simpsons Charlie Munger etc...

 

[robusta]

Well it looks like he is at it again. Volatility = opportunity.

Buying Mastercard

http://jutiagroup.com/20111007-warren-buffett-just-bought-189000-shares-of-this-forever-stock/

Exposure to India

http://articles.economictimes.indiatimes.com/2011-10-04/news/30242494_1_dq-food-retailer-dairy-queen

Buying about 4 billion in common stock in the most recent quarter

http://www.bloomberg.com/news/2011-...ion-in-common-stock-during-third-quarter.html

Almost forgot they are also generating so much cash there is enough left over for a share buyback.

 

[Timmy]

From The Onion. Language warning.



From the "Funny 'Cause its True " department.

 

[TMC93]

From The Onion. Language warning.

View attachment 45511

From the "Funny 'Cause its True " department.

I'm reading his biography book at the moment. As much as i love his story, this made me laugh!

 

[Timmy]

I'm reading his biography book at the moment. As much as i love his story, this made me laugh!

He is a high achiever on a monumental scale, at or near the top of his field.
I've read one of his biographers too, great stuff. So much to learn from Buffett.

 

[ROE]

http://finance.fortune.cnn.com/2012/02/09/warren-buffett-berkshire-shareholder-letter/

He explained a bit on Gold mania

 

[kmlk]

Hey Guys

Everyone knows Warren Buffett and his successes... now he has a few but effective principles he abides by when he invests. Now one of his principles is investing in companies (GENERALLY) that are worth over $5 Billion USD. Obviously on the ASX, this isn't quite possible as he also 'doesn't' like to invest in commodity stocks.

Anyway my question is what size company worth $5 billion in the US would be equivalent to an Australian company?

 

[McLovin]

Hey Guys

Everyone knows Warren Buffett and his successes... now he has a few but effective principles he abides by when he invests. Now one of his principles is investing in companies (GENERALLY) that are worth over $5 Billion USD. Obviously on the ASX, this isn't quite possible as he also 'doesn't' like to invest in commodity stocks.

Anyway my question is what size company worth $5 billion in the US would be equivalent to an Australian company?

I think that's a problem you don't need to worry about until you're running a $250b company.

Seriously, is there any reason other than the fact BRK is too large to make under $5b worthwhile?

 

[VSntchr]

Seriously, is there any reason other than the fact BRK is too large to make under $5b worthwhile?

NOPE!
And in fact (as you know), being a smaller investor presents perhaps one of the biggest advantages available in the markets...assuming of course the investor has skill.

 

[luutzu]

I think that's a problem you don't need to worry about until you're running a $250b company.

Seriously, is there any reason other than the fact BRK is too large to make under $5b worthwhile?

What if he does run a company of similar size? haha... You're right there.

Though to be fair, klmk might meant to ask what characteristics of an equivalent $5 billion Buffett company are there in Australia.

First, I think Buffett does invest in commodities - i remember reading he made a bundle in silver or nickel; he also bought into oil/gas companies.

Back to question, beside the size of BRK's capital making a large acquisition preferable, Buffett look for companies whose position and operation are hard to replicate or compete with, whose business is simple but whose defensive moat is wide.

If you take that general approach and apply to ASX, the Australian economy is relatively small compare to the US and a strong and highly established company might not need to be of sales or size at $5B to dominate or be impressive. I guess it depends on the industry, but say one with $2 or $2.5 billion might qualify as a big whale in most Australian industry.

 

[kmlk]

What if he does run a company of similar size? haha... You're right there.

Though to be fair, klmk might meant to ask what characteristics of an equivalent $5 billion Buffett company are there in Australia.

First, I think Buffett does invest in commodities - i remember reading he made a bundle in silver or nickel; he also bought into oil/gas companies.

Back to question, beside the size of BRK's capital making a large acquisition preferable, Buffett look for companies whose position and operation are hard to replicate or compete with, whose business is simple but whose defensive moat is wide.

If you take that general approach and apply to ASX, the Australian economy is relatively small compare to the US and a strong and highly established company might not need to be of sales or size at $5B to dominate or be impressive. I guess it depends on the industry, but say one with $2 or $2.5 billion might qualify as a big whale in most Australian industry.

Yeah that is what I meant, I was thinking a company worth about 500mil in Australia > 1 Billion would be equivalent. But that is true being small with skill makes it a lot easier, I can't see how much more Buffett can grow... BuT I guess overall he hasn't been wrong yet...

 

[luutzu]

Yeah that is what I meant, I was thinking a company worth about 500mil in Australia > 1 Billion would be equivalent. But that is true being small with skill makes it a lot easier, I can't see how much more Buffett can grow... BuT I guess overall he hasn't been wrong yet...

Maybe not "worth" because that indicate market price... Sales would be what i'd look at. There are companies that earn nothing and a couple of dudes would think it's worth a hundred million or two.

Berkshire could grow much further. It's decentralised and unless his successor thought to bring everything under the one umbrella... Being decentralise enable management to make investments as they see fit and return excess cash to him if they see nothing worthwhile... so the limit might be reach if there's a nuclear winter or something.

 

[Wysiwyg]

America and carbon emission reductions??? Would Mr. Buffet invest in a car dealership if one of the greatest carbon emitters in the world, hydrocarbon fueled vehicles, are going to be phased out. Nuh.

By Chris Bruce
Posted Oct 3rd 2014 7:30AM

When Warren Buffet makes an investment, people pay attention. That's just one of the perks of being one of the richest men in the world, and his latest move is a big one. Buffet's Berkshire Hathaway investment company is to hopping into the auto business in a huge way by buying Van Tuyl Group, the nation's largest privately owned auto dealer network, for an undisclosed sum.

http://www.autoblog.com/2014/10/03/warren-buffet-buys-us-largest-car-dealer/#continued

 

[dlineinvestor]

Apparently someone on this forum bought them in back 1969 (can't remember who now)
Wonder if they are still holding.
5 shares please ... lol

 

[Value Collector]

America and carbon emission reductions??? Would Mr. Buffet invest in a car dealership if one of the greatest carbon emitters in the world, hydrocarbon fueled vehicles, are going to be phased out.

Car's are not going to be phased out, dealerships will just switch to selling alternative vehicles when they become available eg. Electric cars.

When analogue CRT Televisions got phased out, and everyone bought LCD FLAT screens, was that bad or good for the people dealerships selling televisions?

if there is to be a big transition, the dealerships will be winners. It wont change their business model, they will still be making money selling the new cars, getting commissions on finance and insurance packages,

Actually, maybe thats buffets value adding play, considering he is already in the auto insurance business, seems like some good cross promotion opportunities to sell more auto insurance and finance packages.