Australian (ASX) Stock Market Forum

What would Buffett buy in Australia?

Jump to new
M

mb1

Joined
3 January 2007
Posts
65
Reactions
0
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.
 
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 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?
Click to expand...
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!" :D :D
 
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 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.
Click to expand...

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.
 
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
 
Just buy the whole country.

He'd probably run it better.
Perhaps a joint venture with Gates/Packer/Murdoch and Branson.
 
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!" :D :D
Click to expand...
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.
 
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! :D
 
I'd say he'd buy Woolworths, Westfield and Fosters if they were cheap (which they aint).
 
Realist said:
I'd say he'd buy Woolworths, Westfield and Fosters if they were cheap (which they aint).
Click to expand...

Totally agree. Also he would of bought Arnott's when it was Australian or Cadbury.
 
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
 
Realist said:
I'd say he'd buy Woolworths, Westfield and Fosters if they were cheap (which they aint).
Click to expand...

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

But hey you guys do yur own maths :D
 
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.
 
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.
Click to expand...

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

Similar threads

M
What will the market look like in 10 years time?
2
Replies
25
Views
13K
divs4ever
divs4ever
Top