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Next on the book club list,
The intelligent investor by ben graham
then
security analysis by ben graham.
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
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.
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.
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!
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?
Seriously, is there any reason other than the fact BRK is too large to make under $5b worthwhile?
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.
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...
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.
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.
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