Sunday, March 23, 2008
More About Warren Buffett
Warren Buffett the billionaires investor once declared that he wouldn't lose sleep if the stock market shut down for several years the day after he made a major investment. In my pervious posted "Our favourite holding period is forever."
warren Buffett timeframe on equity holdings is forever. He only invests in businesses that he understands and only buys when the price is right. In Circle of Competency he also insist that in sticking to businesses that he or she understands. in staying in your competence, If the circle is small you just need to stay inside you will be fine.
There are many website about Warren Buffett you can read more information about Warren Buffett: The insider`s story.
Friday, March 14, 2008
I buy expensive suits. They just look cheap on me
Hi,
Warren Buffett Said :"I buy expensive suits. They just look cheap on me." This seem like nothing special but the quote show that Warren Buffett does not spent money like other Billionaires.
Warren Buffett is just like a normal American, He live a normal life like normal people he does not buy expensive cars big house and does not wear expensive clothing. Warren Buffett Warren Buffett still live in the house he purchased on Farnam Street for $31,500 in 1957.
In my pervious posted Warren Buffett The Richest Man In The World Warren Buffett Joked that "If you want to know why I passed Bill Gates, it's because I spend less. It's a tribute to thriftiness."
A little saving a day can build up it to great wealth using compounding interest rate. warren buffett is a live example. He started with $10,000 and now he with $62 billion.
Saturday, February 2, 2008
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
Warren Buffett famous quote:"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."
In 2008, US stock markets seem to have many uncertainty, In one day the Dow, NASDAQ, and S&P can have a great gain t and on the other the market can have a big loss. The Market fluctuation seems to create chance for investor.
Warren Buffett taught us that to look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it. Currently the stock market really does fluctuate and stock markets always have too many uncertainty.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Another Warren Buffett famous quote, regretless of stock market is a bullish or bearish there always chance for us to profit from it. Read more about Warren Buffett Quotes to gain more knowledge about the billionaire’s investor and his investing rule.
Thursday, January 31, 2008
Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do we
Mr. Warren Buffett Quote: "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."
During the bullish most people buy stocks to rid with the market, during bearish people will sell to cut loses. Mr. Buffett one of the best investor in the world had a different view with the crowd. Mr. Buffett is a value investor and one of the principles is that he would buy stocks only at a very attractive price.
Warren Buffett would only buy stocks that if he thinks it a bargain for Berkshire Hathaway shareholder, he always like thing to get cheap. With around 40 billion in hand Berkshire Hathaway can buy a lot of great company but Mr. Buffett would only buy them if he think the value of the share is much higher then the current stock price.
Stock Market seems to rally two day ago as the Fed would seem to cut interest rate. Yesterday, The Fed cut its fed funds rate to 3.5% from 4.25% and also its discount rate to 3.5% from 4%.
With great news the stock market seem to rally for Monday and Tuesday. The main thing here is should investor continue to buy stocks? Would investor overpay the stocks they are buying?
What is a bargain now? Is now the best time for value investing, buying stocks the Warren Buffett way? Come on give me your comments...
Saturday, January 26, 2008
Warren Buffett Increase Burlington Northern Santa Fe Stake Update
CNBC Warren Buffett Keeps Chugging With Daily Burlington Northern Buys reports that Berkshire Hathaway Had bought Burlington Northern Santa Fe stocks during last week weak stock market .
CNBC report Berkshire Hathaway file SEC reporting the purchase of Burlington Northern Santa Fe. Warren Buffett had not spent more then $80 per share on any single share of Burlington Northern Santa Fe. Is Mr. Buffett fair price for Burlington Northern Santa Fe Below $80? Let don't guess the price But look at the underlying of the business.
Warren Buffett's mentor Benjamin Graham had taught him that "stock market is there to serve you not to instruct you." Warren Buffett had showed us some example in the past and will continue to show more examples in future. I think the purchase of Burlington Northern Santa Fe last week during the weak stock market was a good example.
More Information about Mr. Buffett purchase Burlington Northern Santa Fe:
Warren Buffett's Burlington Northern Stake Tops 18% As Daily Buying Spree Rolls On (January 19)
Warren Buffett's Burlington Northern Stake Nears 18% As Buying Accelerates (January 16)
Warren Buffett Resumes Burlington Northern Stock Buys, Adding to Stake Every Day This Week (January 10)
Warren Buffett Edges Burlington Northern Stake Higher in First Buy Since October (January 10)
Warren Buffett Was Selling Two Railroads As He Bought a Third (October 15) Warren Buffett's Burlington Northern Stake Tops 17% as Berkshire Hathaway Exercises Options (October 5)
Berkshire Hathaway Buys a Few More Burlington Northern Shares (September 24)
Warren Buffett's Berkshire Hathaway Adds to Burlington Northern Options (September 20)
Why Warren Buffett Is Riding the Rails (Sept. 7)
Warren Buffett's Berkshire Hathaway Moves to Boost Burlington Stake Yet Again (Sept. 4)
Warren Buffett's Berkshire Hathaway Buys Burlington For Fourth Time This Month (August 30)
Burlington Northern: Just What's Warren Up To? (August 28)
Warren Buffett's Berkshire Hathaway Still Riding the Rails with $800 Million Stock Buy (August 27)
Rail Stocks Rally After Another Warren Buffett Buy (August 20)
Warren Buffett Boosts Burlington Northern Stake .. Again (August 17)
Buffett Boosts Bet on Burlington (August 8)
Friday, January 25, 2008
Price is what you pay. Value is what you get.
When Mr. Warren Buffett would only buy equity base on his strict principle. One of the principles is that he would buy them at a very attractive price.
Warren Buffett famous quote: "Price is what you pay. Value is what you get." Mr. Buffett did care what he pay when he buying equity. When coming to evaluating the business and price to pay for the business, Warren Buffett always like good business cheap.
My pervious Posted: It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price, had more information about buying good business.
Last two day the market has been very volatility. In the volatility market, Investor should be careful and not buy equity that is over price by the bullish.
Wednesday, January 23, 2008
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Regretless of stock market is a bullish or bearish, Mr. Warren Buffett would only buy equity base on his strict principle. Berkshire Hathaway did not always have the change to buy Stocks of the business they like under its net asset value. The reason may be there are too many speculators in the stock market.
Warren Buffett would read hundreds and hundreds of annual reports every year, He would value the company base on what he understand, if the company have favorable long-term prospects, is it Operated by honest and competent people and only buy them at a very attractive price.
Warren Buffett always looks at the business and not the stock price. Mr. Warren Buffett famous quote: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Warren Buffett also said that when buying stocks you are not buying just a piece of paper you are buying an interest in the business. You own the business not just a piece of paper.
CNBC Buffett Watch What Would Warren Buffett Do? - Timeless Strategies report that the stock market continue to fall, but Mr. Buffett is a long-term investor, who invest in solid companies selling at a discount, as he always does. Report also said that; Today's market environment may not be actually generating any real opportunities for Mr. Buffett.
The Main concern is not if the stock market creates any opportunities but always remember Mr. Buffett Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. Don't just buy stock just because there are cheap or that is a bargain. Learn from Warren Buffett the billionaire’s investor look for good business that you can understand and you may want to buy them a fair price than a fair business at a wonderful price. The stock market now may give us the opportunities but always remember Mr. Buffett quotes and it will keep you safe and give you a sound investment.
Tuesday, January 22, 2008
Circle of Competency
When coming to buying Stocks, Warren Buffett always had 4 aspects of what he will buy:
- One that we can understand
- With favorable long-term prospects
- Operated by honest and competent people
- Available at a very attractive price.
Mr. Buffett always teach us when Investing we are to stay in our "Circle of Competency". In his annual report Warren Buffett said: "You don't have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital."
Warren Buffett does not use beta, efficient markets, modern portfolio theory, option pricing or emerging markets when investing. He always looks for the 4 aspects and purchases at a rational price whose earnings are virtually certain to be materially higher five, ten and twenty years from now.
Warren Buffett bought Coca-Cola Company and Gillette, two examples of the 4 aspects he wanted during he purchase. Warren Buffett had taught us what we should do when investing and he is a living example.
Monday, January 21, 2008
Buffett Quotes
My pervious posted Rule No.1: Never lose money. Rule No.2: Never forget rule No.1 is Mr. Buffett famous quote. Dreadful Stocks to Avoid fool.com article also said the rule of Mr. Buffett. Mr. Buffett also when looking for an investment he looking for something he can understand, it is also mention in the article by fool.com
Warren Buffett also said: "I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because...” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money."
Another Buffett quote when come to investment: If a business does well, the stock eventually follows Mr. Buffett focus on the business then stock price. He focuses on business he can understand and can make lot money for shareholder.
Thursday, January 17, 2008
Bargain In Stock Market???
Wednesday stock market close with DOW 12,466.16 -34.95, NASDAQ 2,394.59 -23.00, S&P 500 1,373.20 -7.75. Is the market in correction or is this a Bear market?? Berkshire Hathaway Share price continue to drop, share close at $126,400, CNBC Buffett watch report Berkshire Hathaway In Correction - Are Shares a Bargain at $126,400? In Wall Street, a 'correction' is generally defined as a decline of 10 percent or more from a high. A 'bear market' requires a 20 percent drop of share price. For More Information Please visit my pervious posted Is Berkshire Hathaway A Bargain Now???.
CNBC also report Warren Buffett's Burlington Northern Stake Nears 18% As Buying Accelerates Mr. Buffett Increase his stake In Burlington Northern Santa Fe, Berkshire Hathaway file in new SEC report. Berkshire Hathaway has increased their common stocks holding in Burlington Northern Santa Fe to 17.8%. Berkshire Hathaway had not purchase any Shares of Burlington Northern Santa Fe for more than $80 during the last two filing. For more information about MR. Buffett buy in Burlington Northern Santa Fe, Please visit my pervious posted Berkshire Hathaway Increase Stake Of Burlington Northern Santa Fe and Warren Buffett buys another million shares of Burlington Northern Santa Fe Corp by gurufocus.com.
Mr. Buffett had been buying stock even when the market is not doing well. Let us look at Mr. Buffett quote: "Be fearful when others are greedy and greedy when others are fearful." Is Burlington Northern Santa Fe another Bargain? Is Berkshire Hathaway a Bargain? My pervious posted Stock Market Now give us a chance to use Mr. Buffett quote "Be fearful when others are greedy and greedy when others are fearful."??? Let us take a look at what Mr. Warren Buffett is doing and learn from this billionaire investor.
Wednesday, January 16, 2008
Is Berkshire Hathaway A Bargain Now???
CNBC Report Berkshire Hathaway Falls Deeper Into 'Correction Territory' - Are Shares a Bargain at $129,100 Each? Just after market close Tuesday, Berkshire Hathaway Share was trading at $129,100 almost a 15% drop from its 52 week high.
Berkshire Hathaway's shares end 2007 with its biggest percentage gain since 1998. Share is now $141,600, which increases a 28.7% from 2006's close of $109,990. Berkshire had annual gain 30.4 percent for 30 years from 1977 to 2007. A $10,000 in Berkshire will worth $815,506,65.13 now. In my pervious posted Berkshire Hathaway Ends Year With Biggest Gain Since 1998.
Berkshire Hathaway stock price was 132,100.00 -2,100.00 after 11 Jan 2008 Friday stock market closed. Berkshire has also fallen a 12.9% from it 52 week high of 151,650.00.Since Barron's reports on "Sorry, Warren, Your Stock's Too Pricey". Reports said that, Mr. warren Buffett's company Berkshire Hathaway share price maybe over valued.
Berkshire Hathaway is an insurance company, which also owning a number of diverse business activities. Their main businesses are insurance businesses on both a primary basis and a reinsurance basis. Berkshire's insurance businesses provide insurance and reinsurance of property and casualty risks; reinsure life, accident and health risks worldwide. Berkshire's insurance operations under four sub-groups: GEICO and its subsidiaries; General Re and its subsidiaries; Berkshire Hathaway Reinsurance Group (BHRG), and Berkshire Hathaway Primary Group.
In my pervious posted Stock Market Now give us a chance to use Mr. Buffett quote "Be fearful when others are greedy and greedy when others are fearful."??? I mention Mr. Warren Buffett has also made some move, Berkshire Hathaway had filed a SEC report reveals purchases of Burlington Northern Santa Fe from Monday 7 Jan 2008. Is Berkshire Hathaway a bargain now or is it not?? Give me your comments About Berkshire Hathaway.
Friday, January 11, 2008
Stock Market Now give us a chance to use Mr. Buffett quote "Be fearful when others are greedy and greedy when others are fearful."???
Friday stock market closed with DOW 12,606.30 -246.79, NASDAQ 2,439.94 -48.58 and S&P500 1,401.02 -19.31. One great fall in one day. Berkshire Hathaway stock price was 132,100.00 -2,100.00 after Friday stock market closed. Berkshire has also fallen a 12.9% from it 52 week high of 151,650.00.Since Barron's reports on "Sorry, Warren, Your Stock's Too Pricey". Reports said that, Mr. warren Buffett's company Berkshire Hathaway share price maybe over valued.
Stock Market had been falling this week due to some bad news, this remind me of Mr. Buffett quote: "Be fearful when others are greedy and greedy when others are fearful."
Mr. Warren Buffett has also made some move this week. Berkshire Hathaway had filed a SEC report reveals purchases of Burlington Northern Santa Fe from Monday 7 Jan 2008. My pervious posted Berkshire Hathaway Increase Stake Of Burlington Northern Santa Fe has CNBC's Buffett Watch news on Mr. Buffett buying Burlington Northern Santa Fe.
Due to drop of prices in a lot of stocks everybody is looking for bargain. My question here, is it the real time to buy? What should people buy? Mr. Buffett quote let us enjoys some of the bargain here, but with so much uncertainty now. Please give some thought before you move. Ask yourself are you a long-term investor or a trader? Are you investing or speculating?
Business Week Report Business Events for the Coming Week some of the Major business events and economic events scheduled for the coming week. Take a look to know what event is coming.
"Be Fearful When Others Are Greedy And Greedy When Others Are Fearful."
Stock market closes higher after Thursday trading. DOW at 12,853.09 increases 117.78, NASDAQ closed at 2,488.52 up 13.97 and S&P 1,420.33 up 11.20 points. Federal Reserve Chairman Ben Bernanke said that U.S. central bank is ready to cut interest rates aggressively to support growth. Report by Reuters in Bernanke signals bold Fed action to lift growth.
Recession fear increase as report from Reuters FACTBOX: U.S. recession risks rising indicate that GOLDMAN SACHS, J.P. MORGAN, MERRILL LYNCH, and MORGAN STANLEY has report that the recession risk increasing.
"Be fearful when others are greedy and greedy when others are fearful." one of Mr. Warren Buffett famous quote. In August 2007 CNBC's Report Buffett to CNBC: Market Chaos Will Probably Create Opportunities and Warren Buffett Sees Potential for Opportunities: The Complete CNBC Exclusive Interview.
Mr. Buffett has bought some of the company like American Express Co, The Wells Fargo Company and GEICO Auto Insurance during their trouble time. During their trouble time the stocks of these company are cheap and Mr. Buffett really get himself a great deal.
Related story: The time to buy stocks is now - Buffett. The quote is a great quote and it requires some thought before you act. Think well and don't act without serious thought.
Sunday, January 6, 2008
Fool.com articles
Fool.com has posted two articles about Warren Buffett on Investing and Value investing topic.
Mr. Warren Buffett the also know as the "Oracle of Omaha", Has great knowledge when it come to investing. Where you can read both the articles at Warren Buffett's Priceless Investment Advice and The Optimistic Prediction of Warren Buffett.
This Quote was mention in the article Warren Buffett's Priceless Investment Advice. "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Again Mr. Warren Buffett keep emphasize on business when it come to investing.
Mr. Buffett also had said about "Time is the enemy of the poor business and the friend of the great business." and "If a business does well, the stock eventually follows.” These quotes are what Mr. Buffett will like to tell all investors in the world.
When it comes to business buying a good business and a poor business does matter in long term.
Berkshire Hathaway, Mr. Buffett holding company which stock price was $7.60 then now was trading at $135,500.00. Berkshire Hathaway had been a very good example for us to learn. Take a look at the Report about Berkshire Hathaway About how it out performs S&P500 for 20 out of 24 years.
Let hope to learn more from this Billionaire investor.
Saturday, January 5, 2008
Unemployment Rate Increases Will Warren Buffett 2008 Predictions Come True
Market close Friday, with DOW 12,800.18 a -256.54 drop, NASDAQ 2,504.65 a -98.03 drop and S&P 1,411.63 a -35.53 drop. U.S. Labor Department reported job creation and unemployment rose to a two-year high of 5 percent, the fear of recession also pushes the Index down. Previously CNBC buffett watch posted Warren Buffett 8 Predictions for '08 - And Beyond.
- This story covers valuable information for investors.
- Recessions can't be avoided forever.
- We'll survive future recessions just as we've survived past problems.
- Recessions will create opportunities.All stocks won't be cheap.
- The crowd will make mistakes.
- Investors will mistakenly think falling stock prices are bad.
- Good times will prompt bad decisions.
- There will be more dancing at another wild party followed by another painful hangover.
Read CNBC full story cover on Warren Buffett Watch's 8 Predictions for '08 - And Beyond.
Beside those predictions MR. Warren Buffett warned that the U.S. could fall into recession, if unemployment increases significantly. Here the full story cover by CNBC Warren Buffett Warning In CNBC Interview: Recession Possible If Unemployment Picks Up Significantly.
Reuters Reports that the unemployment rate rose to 5 percent from 4.7 percent. Read more at Reuters INSTANT VIEW 4-US Jobs growth slows, unemployment up in December.
Will recession happened in 2008? Regardless of if recession is real I think you can definitely take Warren Buffett suggestion about for year 2008 and beyond. As long-term investor you can always take his advise, as he is a life example who build his wealth in value investing.
Friday, January 4, 2008
"Time is the enemy of the poor business and the friend of the great business"
Regardless in Investing or in business Mr. Warren Buffett always said that: "Time is the enemy of the poor business and the friend of the great business." Business that earning high return on equity over a long period of time as a great Investment for long term investing and business that earning low return on equity over a long period of time as trouble for long term investing. Mr. Warren Buffett has also stated that "Our favorites holding period is forever." and "If a business does well, the stock eventually follows." I have introduced in my pervious post. Berkshire Hathaway is a truth life example as well as some of his common stocks holding.
Mr. Buffett had been holding stocks of American Express Co., Coca-Cola Company, The Washington Post Company, and Wells Fargo & Company And Gillette over a log period of time and proven that these great businesses had really paid him well.
Regardless of Investing or Business "Time is the enemy of the poor business and the friend of the great business" proven to be truth and will always be. These are some of the most valuable lesson we can learn from Mr. Warren Buffett also know as the famous "Oracle of Omaha".
Thursday, January 3, 2008
"Our favourite holding period is forever."
Mr. Warren Buffett wrote in the Letter to Berkshire Hathaway shareholders in 1988 saying that "Our favorites holding period is forever." Mr. Buffett had been holding stock of American Express Co., Coca-Cola Company, The Washington Post Company, and Wells Fargo & Company And Gillette long ago and had been holding them for a long time.
There are some of the good business describe by him and these stock had not been sold since he bought them. They have rise in value from millions to billions. Buffett said: "If a business does well, the stock eventually follows.” those business will still do well in the future and I believe that the value of the stocks will continue to rise.
Tuesday, January 1, 2008
If a business does well, the stock eventually follows
As Year 2007 ended, Berkshire Hathaway's shares end with its biggest percentage gain since 1998. Share is now $141,600, which increases a 28.7% from 2006's close of $109,990. This made me think of a famous quote Mr. Buffett said: "If a business does well, the stock eventually follows."
Berkshire Hathaway has annual gain averaging 30.4% for the last 30 years. Berkshire Hathaway has lots of great business include; GEICO, General Re, Wesco Financial Corporation, Acme Brick Company, See's Candies, Nebraska Furniture Mart and many other. Those are good business and Berkshire Hathaway stock price has been following the business since Mr. Buffett took control of it at 1965.
Over the last 30 years, Berkshire Hathaway had been a very good example of what had been told to us by Mr. Warren Buffett. "If a business does well, the stock eventually follows."
Friday, December 28, 2007
Chains of habit are too light to be felt until they are too heavy to be broken
Yesterday I re-watch the video on Warren Buffett MBA Talk part 1 to part 10. I would like to share this quote with all. In part one of the Talk Mr. Warren Buffett Talk about the qualities of person he is looking for and mention this quote: "Chains of habit are too light to be felt until they are too heavy to be broken" Telling all that people can chose the way they want to act and the type of people they want to be from young. Before they went too old for them to change. The Talk was interesting and I learn a lot from it. Hope everyone enjoy that too.
Monday, December 24, 2007
Risk comes from not knowing what you're doing
Mr. Warren Buffett another famous quote: "Risk comes from not knowing what you're doing." I really love this quote. I found out that in life we do a lot of things that we feel that we know what we are doing but end up in the wrong things. This quote made me understand more about why and how i end up the wrong way. All this seem to to be a very simple reason, most people feel that they know what they are doing but in fact not knowing what they really is doing. Feeling that you know what you are doing is different with know what you are doing. Hope everyone can find out the real " knowing what you're doing" and not get off track.