Warren Buffett

  • 08 May
    Buffett: Do As I Say, Not As I Do

    Buffett: Do As I Say, Not As I Do

    We’ll continue today with my summary of Berkshire’s annual meeting, and the most important things an investor should remember and learn from Warren Buffett and Charlie Munger.

    If You Want A Formula, You Should Go Back To School

    On a question seeking a mathematical explanation of how to pick stocks, Munger said that investing cannot be put into a formula because they are always wrong. As always, investing is about commons sense.

    For Munger, Costco at a PE of 12 was simply extremely cheap even if the price to book was around 3. This leads to another interesting topic about asset light businesses.




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  • 07 May
    What You Can Learn From Berkshire’s Annual Shareholder Meeting

    What You Can Learn From Berkshire’s Annual Shareholder Meeting

    This past Saturday, the Woodstock for capitalists was on as Warren Buffett and Charlie Munger held their annual shareholder conference.

    If you want to succeed in investing and reach your financial goals, this conference and the insights from it are all you need to listen to in order to learn about investing, what’s going on, and what to do about it.

    In today’s article, I’ll summarize what the key points to take out are and also save you the 6-hour watch.



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  • 03 May
    Buffett Thinks You Can Turn $400 Into $400,000, But Here’s The Reality

    Buffett Thinks You Can Turn $400 Into $400,000, But Here’s The Reality

    Buffett recently gave an interview where he discussed how if he would have invested the first $114.75 he made in 1942 in the S&P 500 and reinvested the dividends, he would now have $400,000.

    That’s a nice way to sell the stock market to people, but I really disagree with Buffett and with what he’s selling. Today, I’ll discuss reality.




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  • 27 Apr
    Is Kraft Heinz A Bargain Or A Falling Knife?

    Is Kraft Heinz A Bargain Or A Falling Knife?

    The Kraft Heinz Company (NASDAQ: KHC) is one of Warren Buffett’s strongholds and as we often discuss Buffett here, it’s appropriate that we also discuss his holdings.

    KHC is especially interesting now that it’s 40% cheaper than it was a year ago.



    Today, we are going to discuss:

    • What happened to KHC.
    • Is it an opportunity or trap?
    • Packaged foods trends.
    • What can we expect on the business side of returns?
    • Berkshire buying Kraft for $40 billion.
    • How to invest in KHC – Strategy.

    More →

  • 23 Apr
    This Market Is Getting Crazy – Here’s How Buffett Says To Invest In It

    This Market Is Getting Crazy – Here’s How Buffett Says To Invest In It

    • We’ll discuss some news first, including commodity prices, chip guidance, and covenant ratios.
    • Then we’ll put things into perspective and see what an investor can do in this market.
    • I’ll give you a few tools that will make investing easy for you, if you can handle them.



    Introduction

    Last week, the stock market was positive for half of the week and then negative for the remainder. More →

  • 12 Mar
    Watch Out, Your Value Is Being Stolen

    Watch Out, Your Value Is Being Stolen

    • Book value might be the biggest not risk, but loss of value in the current market environment.
    • A full year of S&P 500 earnings evaporates every 3.5 years.
    • Fortunately, there is something you can do.



    Introduction

    Today, I’ll continue with my series on market risks. These are the main market risks I see and you can read more about them by clicking on the links provided:

    • Debt is being used recklessly.
    • Valuations don’t matter as growth is the key and profitability will come.
    • Book values are so old fashioned.
    • Stocks can only go up and corrections and bear markets don’t last long.
    • If you invest in index funds, you will do well.

    In this article, I’ll focus on book values which are often an omitted metric, especially late into a bull market, but are extremely important. More →

  • 05 Mar
    Stocks Are Crazy Risky Now – We’ll Reveal The Perfect Hedge

    Stocks Are Crazy Risky Now – We’ll Reveal The Perfect Hedge

    There’s some volatility in the markets that we haven’t seen for a long time.

    The increased volatility is a sign of nervousness and the market is looking for direction.

    No one knows where things will go in the short term as that’s impossible to know. Even Warren Buffett never fails to mention how he has absolutely no idea about where markets will go in the short to medium term.

    If we look at things from a macro perspective, the economy is at its limits and we’ve seen the actual GDP finally reach the potential GDP. More →

  • 28 Feb
    This Is Why Buffett Is Buying Apple

    This Is Why Buffett Is Buying Apple

    • I’ll give a long-term perspective on Apple, something that most analysts miss.
    • It’s all about the ecosystem.
    • There’s a big possibility the returns will be better than 10% per year from the current level.



    Introduction

    Yesterday we discussed Warren Buffett’s most recent letter to shareholders. In that letter Buffett made clear how he’s finding it very difficult to find sensibly priced investments, so it’s interesting to think about why he has been buying Apple (NASDAQ: AAPL). More →

  • 27 Feb
    Buffett’s Newest Letter Tells You Everything You Need To Know About Investing

    Buffett’s Newest Letter Tells You Everything You Need To Know About Investing

    • I’ll go through the everlasting wisdom Buffett gives us within his latest letter to shareholders.
    • His short sentences say so much that many miss the key ideas: accounting & investing, optimism, M&A, debt, patience, and long-term risk.



    Introduction

    For some, there isn’t much to look forward to during February’s cold but if you’re an investor, you wait a whole year for Buffett’s annual letter to shareholders.

    The first thing is that Berkshire’s results are published on Saturday so that we can all go through the results in peace. His letter is filled with investing wisdom that it’d be a shame to miss it by just skimming through the letter.

    Today, we’ll dig deeper into what the carefully selected, rather short sentences tell us about investing in the current environment. More →

  • 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 →

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