Warren Buffett

  • 24 Jan
    What Is Buffett Buying & Selling?

    What Is Buffett Buying & Selling?

    • A look at what Buffet has been buying and selling lately gives us a few clues about how to spot good investments.
    • What we can also see is his investment psychology, which has been the key to his success.
    • With $106 billion in cash and new dividends coming in constantly, you have to be a net buyer.



    Introduction

    Buffett recently said that he’s a net buyer of stocks. Many took that as another bullish signal for the whole stock market, but you should be aware that Buffett doesn’t usually buy what others are buying.

    A year ago, we analyzed how Buffett was buying stocks but not the market. He was buying Apple (NASDAQ: AAPL) and airlines which all had PE ratios way below the market’s and in the single digits. More →

  • 08 Jan
    Want To Get Rich? Do These Three Things

    Want To Get Rich? Do These Three Things

    • Investing is more about mindset than about the right investments.
    • A rich investing mindset allows you to make money off earnings, build wealth over time, and invest at the right time.
    • Do you have the right mindset to get rich?



    Introduction

    Today, I’ll discuss 5 reasons why many people remain poor and why the rich get richer.

    Investing isn’t some kind of esoteric discipline where if you get a lucky break you will be settled for life. Investing is about having the correct mindset and not about hitting the jack pot. More →

  • 29 Dec
    This Metric Made Buffet & Munger Billionaires – Here’s How To Use It

    This Metric Made Buffet & Munger Billionaires – Here’s How To Use It

    • Return on invested capital is an interesting metric, one strongly promoted by Buffett and Munger.
    • I’ll show how to calculate and the impact it has on investment returns.
    • It’s very helpful to those who invest for the long term.



    Introduction

    Charlie Munger is known for his view of the investing world that has one advantage over all other views, it works and he has a 50-year track record with a 19% annual return to back up his statements. His view on investing is simple and can be synthesized by the following quote: More →

  • 28 Nov
    Here’s Why You Might Want To Rethink Buy & Hold

    Here’s Why You Might Want To Rethink Buy & Hold

    • A buy and hold investing strategy sounds appealing, you buy something, forget about it for 20 years, and wake up rich.
    • However, it’s highly unlikely that such a thing happens.
    • I’ll discuss the main issues and benefits of a buy and hold strategy.



    Introduction

    Buy and hold is one of the most famous investing strategies, made even more famous by Warren Buffett himself.

    For Buffett, the idea behind buy and hold is that all you have to do is buy a wonderful business at a fair price and hold it forever. However, there are many flavors of the buy and hold strategy, and today, we’ll discuss how the strategy as a whole fits in the current environment. More →

  • 14 Nov
    The #1 Rule To Follow For Successful Long Term Investing

    The #1 Rule To Follow For Successful Long Term Investing

    • Investing is full of trends and fads. Are you sure you want to be part of them?
    • One extremely simple rule can make a huge difference in your investing life.
    • I’ll conclude today’s article with the second most important thing for investors to remember.



    Introduction

    The current investing trend assumes that stocks will only go up and that passive index investing is the best. Valuations keep getting higher, companies keep piling on the debt and doing expensive buybacks, and no one cares because the only important thing is that stocks continue to rise. More →

  • 06 Oct
    Analysts Love This Metric. Here’s Why You Shouldn’t.

    Analysts Love This Metric. Here’s Why You Shouldn’t.

    • EV/EBITDA is a widely used metric these days, so every investor should understand what it is.
    • We’ll discuss how EV/EBITDA is calculated and how you can manipulate it.
    • There are some pros to using it, but also some cons.



    Introduction

    When I was just starting with investing, I remember that the beta coefficient was popping up everywhere, next to almost every stock price or price to earnings ratio.

    The beta coefficient has faded in the last two decades as it was clear that markets aren’t efficient and that there is no real usage of the metric. Now a new metric has emerged lately and is used by most analysts. More →

  • 03 Oct
    Good Debt Explained: Why You May Want To Take Out A Loan To Invest

    Good Debt Explained: Why You May Want To Take Out A Loan To Invest



    • Investing isn’t only about choosing the right stocks, it’s also about proper capital allocation.
    • Taking on leverage to invest can be smart but it can also be incredibly dumb.
    • From an historical perspective, it could be a very smart thing to be ready to refinance your home and invest in stocks.

    Introduction

    Buffett and Munger praise themselves for never taking out loans for Berkshire and one of the most famous Buffett quotes is:

    “If you’re smart you don’t need debt, if you are not smart, you better stay far from debt.”

    However, this is another half-truth that he tells the world. More →

  • 29 Sep
    These 40 Charlie Munger Quotes Tell You Everything You Need To Know About Investing

    These 40 Charlie Munger Quotes Tell You Everything You Need To Know About Investing

    • I like Munger much better than Buffet. Munger will insult you, but you’ll be a better person after the fact.
    • It’s funny how investing principles can be summarized and simplified in a few quotes. The problem is that nobody, or maybe just a few, will actually listen and apply them.
    • We don’t need more than what Berkshire has done in the past 50+ years as a confirmation of how important this is to our investing lives.

    Introduction

    Charlie Munger is Warren Buffett’s partner in crime, but he’s usually not nearly as exposed to all the media attention.

    The difference between the two is that Warren really wants you to like him, while Munger really doesn’t give a f*** about what you think of him. Therefore, if you want the truth and you want to learn as much as possible about investing beyond the classic things Buffett says, you should listen to Munger. More →

  • 28 Sep
    This Is How You Find Stocks With A Margin Of Safety

    This Is How You Find Stocks With A Margin Of Safety

    • It’s impossible to accurately determine the actual value of a stock, but there are some methods that allow you to come close.
    • What’s even better is when you can buy at a price much lower than your intrinsic value calculation.
    • Qualitative factors can also help in assessing the margin of safety.

    Introduction

    The best investments are those that carry no risk with unlimited upside.

    Given that the markets are inefficient, it’s possible to find such investments and in today’s article, I’m going to describe the best ways to figure out what the margin of safety is in an investment. More →

  • 13 Sep
    Why You Should Always Watch, But Not Always Listen To, Warren Buffett

    Why You Should Always Watch, But Not Always Listen To, Warren Buffett

    • There’s a difference between what Buffett says and what he does.
    • Perhaps he doesn’t do the dirty work, but he for sure has someone else do it for him.
    • I’ll discuss three famous quotes that can be seen from various perspectives.

    Introduction

    I often mention Warren Buffett and his valuable investing advice. However, not all that he says has to be blindly believed.

    In this article, I’m going to debunk some of his most famous statements by showing that he neither follows his own advice nor do some of his theories still hold in the current environment. More →

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