Buffett Buffet

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Descartes
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Re: Buffett Buffet

Post by Descartes »

Financing a buy-out of Yahoo internet assets too.
Warren seems to now understand technology stocks a bit more than he once claimed.
Probably the influence of his bridge partner..or encroaching senility: 15 years to centenary ..or bust.
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Peculiar_Investor
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Re: Buffett Buffet

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The times are a changin'.
The billionaire said in 2001 that he’d sworn off investing in airline stocks after earlier lamenting the “mistake” of betting on US Airways Group Inc. He added that the industry had been unprofitable from the time of Wilbur and Orville Wright through 1991.

“Now if I get the urge to invest in airlines, I call an 800 number, and I say: Hello, my name is Warren, and I’m an air-o-holic,” he said. “Sometimes, it takes them 10 minutes to talk me out of it, sometimes more.”
Was the 800 number taken out of service :lol: because ... Berkshire Bets on Airlines With Stakes in American, Delta - Bloomberg
Berkshire held 21.8 million shares of American Airlines Group Inc. as of Sept. 30, valued at almost $800 million at the time, according to a regulatory filing Monday from the billionaire’s Omaha, Nebraska-based business. Buffett’s company also reported 6.33 million shares of Delta Air Lines Inc. and another 4.53 million of United Continental Holdings Inc., according to the filing. And Berkshire added an investment in Southwest Airlines Co. after Sept. 30, CNBC reported, citing Buffett.
It might also be worthy to take note
Bloomberg wrote:Berkshire cut its Wal-Mart stake in the third quarter by about two-thirds to 13 million shares. Buffett’s company exited a holding in Suncor Energy Inc.
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Re: Buffett Buffet

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Becoming Warren Buffett (HBO Movie)

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HBO is airing a made for TV movie called Becoming Warren Buffet, Thursday Feb 2 at 5:40. It has some interesting glimpses into his life and history.

http://www.hbocanada.com/details/gp1222 ... en-buffett

http://www.imdb.com/title/tt6438096/?ref_=nv_sr_1
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kcowan
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Re: Buffett Buffet

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Thanks. Got the PVR set.
For the fun of it...Keith
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Re: Buffett Buffet

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It already air out here on Monday night, so the HBO Canada schedule must be showing upcoming repeats. I particularly found his morning breakfast routine an interesting contrast to his wealth :lol:
GreatLaker wrote:Thursday Feb 2 at 5:40.
Is that for all of Canada? Hint, HBO Canada, like most many websites, defaults to Eastern Time.
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Re: Buffett Buffet

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I watched the documentary Monday night on HBO. It was very well done. I found it to be quite "personal" rather than simply presenting facts and timelines. :thumbsup:
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Re: Buffett Buffet

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Greece's financial crisis is not over.
Greece pushed back against the International Monetary Fund’s view that the government’s economic reforms are heading off track.

In official responses, published with an IMF report on Greece late Tuesday, Finance Minister Euclid Tsakalotos said the fund’s assessment was not based on recent evidence, while Bank of Greece governor Yannis Stournaras said it downplayed progress on the financial sector and was unduly pessimistic.

Talks between Greece and creditors for the completion of the second review of its 86 billion-euro ($92 billion) bailout program have stalled over significant differences between the IMF and euro area on projections for Greece’s economy, targets and debt sustainability. A deal between creditors is needed by a meeting of euro-area finance ministers in Brussels on Feb. 20, before the Dutch elections on March 15. After that, reaching agreement could become even trickier.
I suppose that this gives rise to an investment opportunity. Tried of getting 1% or 2% on your fixed income? Step up to 10% instead:
The yield on two-year notes neared 10 percent on Tuesday as the quarrel fueled concern the country is running out of time to complete the review before the busy election season begins. The yield rose 10 basis points to 9.83 percent at 10:49 a.m. in Athens.
George
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Re: Buffett Buffet

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Thegipper
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Re: Buffett Buffet

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I think he is on CNBC the early morning show with Becky. That is Feb 27.
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Re: Buffett Buffet

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And then there were two? Sizing Up Warren Buffett's Successor - Bloomberg Gadfly
Bloomberg wrote:Greg Abel and Ajit Jain are shaping up to be the next generation's Warren Buffett and Charlie Munger -- the largest shoes anyone in Corporate America will have to fill.

On Wednesday morning, Berkshire Hathaway Inc. announced that both executives were added to the board. Abel, the company's energy division head, was appointed vice chairman of non-insurance business operations and Jain, who runs reinsurance, was made vice chairman of everything insurance-related. It's a significant gesture toward Buffett's succession and the clearest indication yet as to who will lead the conglomerate when the Oracle of Omaha is gone. Buffett is 87, while his trusty sidekick Munger just turned 94 last week. They're staying in their own current roles as chairman and CEO and vice chairman, respectively.
Other than appointing the two to board, this is relatively old news as Abel and Jain have long been considered the front runners.
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Re: Buffett Buffet

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Well planned, well strategized succession planning. Good companies groom their succession for years for a seamless (as can be) transition.
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Re: Buffett Buffet

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Here is a transcript of Charlie Munger's talk and Q&A from the annual meeting of the Daily Journal. Lots of interesting stuff here.
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Re: Buffett Buffet

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DenisD wrote: 25 Feb 2017 23:30 2016 Shareholder Letter
The 2017 letter is due out tomorrow morning. I plan to brew a nice pot of coffee to enjoy while I enjoy the annual read of Buffett's letter.
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Re: Buffett Buffet

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Warren Buffett's 2017 Shareholder Letter has been posted. As I post this I note that their site is running a tad slow this morning. I guess it is a popular download.

No mention of Jack Bogle this year, but there is commentary on the "The Bet" in a section “The Bet” is Over and Has Delivered an Unforeseen Investment Lesson

I'm just finishing brewing pot of good coffee and looking forward to a leisurely read and education on Buffett's investing thoughts.
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Buffett's 2017 Shareholder Letter

Post by Peculiar_Investor »

The 2017 Shareholder Letter is much shorter this year at 16 pages. It mostly focuses on their businesses and as previously mentioned a decent discussion of “The Bet” is Over and Has Delivered an Unforeseen Investment Lesson. There is far less general investment strategy and Buffett'isms in this letter. But there are still some worthwhile takeaways IMHO.

Some other insights to consider, in talking about the lack of deals in 2017
Warren Buffett wrote:There are four building blocks that add value to Berkshire: (1) sizable stand-alone acquisitions; (2) bolt-on acquisitions that fit with businesses we already own; (3) internal sales growth and margin improvement at our many and varied businesses; and (4) investment earnings from our huge portfolio of stocks and bonds. In this section, we will review 2017 acquisition activity.

In our search for new stand-alone businesses, the key qualities we seek are durable competitive strengths; able and high-grade management; good returns on the net tangible assets required to operate the business; opportunities for internal growth at attractive returns; and, finally, a sensible purchase price.

That last requirement proved a barrier to virtually all deals we reviewed in 2017, as prices for decent, but far from spectacular, businesses hit an all-time high. Indeed, price seemed almost irrelevant to an army of optimistic purchasers.
That's not a bad set of requirements to consider for your own investing habits.
Once a CEO hungers for a deal, he or she will never lack for forecasts that justify the purchase. Subordinates will be cheering, envisioning enlarged domains and the compensation levels that typically increase with corporate size. Investment bankers, smelling huge fees, will be applauding as well. (Don’t ask the barber whether you need a haircut.) If the historical performance of the target falls short of validating its acquisition, large “synergies” will be forecast. Spreadsheets never disappoint.

<snip>

We also never factor in, nor do we often find, synergies.
Another useful point to remember when reviewing merger deals on your holdings or potential holdings.

One the use of leverage, or margin, Buffett provides some guidance
Warren Buffett wrote:Our aversion to leverage has dampened our returns over the years. But Charlie and I sleep well. Both of us believe it is insane to risk what you have and need in order to obtain what you don’t need.
He follows that up later in the letter with
Warren Buffett wrote:Berkshire, itself, provides some vivid examples of how price randomness in the short term can obscure long-term growth in value. For the last 53 years, the company has built value by reinvesting its earnings and letting compound interest work its magic. Year by year, we have moved forward. Yet Berkshire shares have suffered four truly major dips. Here are the gory details:
Buffett - 2017 snippet.JPG
This table offers the strongest argument I can muster against ever using borrowed money to own stocks. There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small and your positions aren’t immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions.
The whole discussion of the Hedge Fund bet is quite interesting, with the usual emphasis on the cost to the investor of fees. What is particularly interesting to me is the discussion of how they funded the $1 million dollar prize by each purchasing $500,000 face amount of zero-coupon US T-Bills and the very strange things took place in the bond market, and what they did about it. Somewhat underlines what Buffett has been saying about the dangers in the bond market. Worth pondering.
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Re: Buffett Buffet

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Thanks to NormR for a reminder about another gem buried in the letter
Warren Buffett wrote:"The bet illuminated another important investment lesson: Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon such as alpha and beta. What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period - or even to look foolish - is also essential."
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Re: Buffett Buffet

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They beat my overall return and again they beat me in dividends received this year... :P

"Berkshire received $3.7 billion of dividends in 2017..."
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Re: Buffett Buffet

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You can also get the info to infer WB's allocation to AAPL, a question which came up in our APPL thread recently.
Show me the incentive and I will show you the outcome

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Re: Buffett Buffet

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Koogie wrote: 24 Feb 2018 12:34 They beat my overall return and again they beat me in dividends received this year... :P

"Berkshire received $3.7 billion of dividends in 2017..."
Why aren't you invested 100% in BRK.b ? :wink:
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Re: Buffett Buffet

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Munger wasn't jumping on the climate change bandwagon. Did WB make any comments?
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Re: Buffett Buffet

Post by Flaccidsteele »

Steady as she goes

REUTERS: Buffett's Berkshire doubles profit, repurchases $900 mln stock in Q3
The strong result gives Buffett more cash to deploy even as the well-known bargain-hunting “value” investor has admitted struggling to find a place to put those earnings to work and resorted to buying back $928 million in his own company’s stock in the latest quarter.
CNBC: Berkshire Hathaway operating profit nearly doubled in third quarter

The year prior included major losses due to three U.S. hurricanes and an earthquake in Mexico. The company added that it had made $928 million in share repurchases in the three-month period.

Operating profit in the second quarter rose to $6.88 billion from $3.44 billion a year earlier, and higher than the $6.11 billion expected by Wall Street.
PS: The last dip took Berkshire class B down to 198 so I bought a few more just to get my total to 3000 shares of the class B

PPS: I remember buying 1 share of Berkshire class B shortly after I landed my first job upon graduating university. This was before the 30-1 reverse split. Good times
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Re: Buffett Buffet

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Warren Buffett's 2018 Shareholder Letter has been posted as is yet again shorter, 14 pages this year. I note that their site is running a tad slow responding this morning. I guess it is a popular download.

I'm just finishing brewing pot of good coffee and looking forward to a leisurely read and education on Buffett's investing thoughts.
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Re: Buffett Buffet

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Thks for posting link PI. Always interesting reading from Buffet.
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Re: Buffett Buffet

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RBull wrote: 23 Feb 2019 13:34 Thks for posting link PI. Always interesting reading from Buffet.
A good read indeed. I continue to like the shorter versions better!
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