Warren Buffett 02 (Feb 10 - May 15)

[winston]

Where Did Warren Buffett Go Wrong?

The answer might lie somewhere more difficult to dissect

By James Brumley

It feels a little unnatural to criticize the icon of value investing, particularly when he’s got a superior long-term track record. On the other hand, when arguably the wisest fund manager on the planet starts to trail the market’s average performance on a regular basis, even the most patient of investors is going to start second-guessing the guy making the picks.

It’s What You Can’t See That Matters Most

It’s a reality that’s rarely discussed about Berkshire’s structure, but it’s actually a fund (sort of) made up of both publicly traded companies as well as privately held ones.

We can wrap our hands around the publicly traded ones pretty well. It’s the privately held names here, however, that might be the biggest reason for the three-year struggle.

Bottom Line

Warren Buffett remains a great investor, but he’s not infallible.

What’s interesting about the past three years is that Buffett paid dearly for a couple of the privately held companies that might be failing Berkshire now.

Namely, he paid 31% more than the going price for the 2010 acquisition of railroad Burlington Northern Santa Fe, and offered a 28% premium for Lubrizol last year. And given the bids, odds are those are not the only businesses he overpaid for — they and Conoco are just the ones we readily recall.

Simply put, when the man himself takes “value” out of value investing, lagging performance shouldn’t be a surprise.

http://www.investorplace.com/2012/05/wh ... en=3879240

[winston]

WB on CNBC:-

"If u have an ounce of gold, after 100 years, you would still have only an ounce of gold"

[winston]

Do What Buffett Says, Not What He Does by Tyler Durden

As can be seen in the attached clip Warren Buffett, as part of his anti money tirade, both real (gold) and fiat, the Chairman of Berkshire is certainly not a fan of holding cash in any form.

To wit: "cash is as risky an asset you can own over time."

In other words, the opportunity cost of not owning something else with that cash is indicative of even more risk in the equities arena.

So one wonders: is the fact that Buffett's firm now has a record amount of cash on its books more an example of senility or hypocrisy....

Or is all hell about to break loose as per Buffett's own words? We can't decide.

Compare the oracular words He spaketh in today's interview with Becky 'not-so' Quick - forward to 2:30 for the punchline on cash... with the sad reality of BRK's own balance sheet exuberance with the highly risky cash...

To give CNBC their credit, their was one lone voice in the darkness. Gary Kaminsky pointed out this apparent hypocrisy this morning but alas the powers-that-be at the business channel felt videos of Zuck's arrival and 'The Avengers' reviews were more appropriate.

http://www.zerohedge.com/news/do-what-b ... at-he-does

[behappyalways]

巴菲特：爱比金钱重要
http://jingji.cntv.cn/2012/05/15/VIDE13 ... 0125.shtml

[winston]

not vested

Berkshire Hathaway has just filed reports with the Securities and Exchange Commission showing it has new stakes in automaker General Motors and media company Viacom.

Buffett also increased his stake in global discount retailer Wal-Mart. Buffett recently said he doesn't think the Mexico bribery scandal will harm the company's long-term earnings power.

Source: Growth Stock Wire

[winston]

"Chains of habit are too light to be felt, until they are too heavy to be broken."

[winston]

Warren Buffett on “Owner’s Earnings”

I think this is one of the most important investing concepts Warren Buffett has ever made. He outlines what he calls “Owner’s Earnings,” which is reported earnings plus depreciation, depletion, amortization, and certain other non-cash charges minus the average annual amount of capitalized expenditures for plant and equipment.

Buffett says that Owner’s Earnings is a much better indicator of corporate health than Cash Flow.

This is from his 1986 Chairman’s Letter:

http://www.crossingwallstreet.com/archi ... nings.html

[winston]

Why Warren Buffett is Loading Up on Tungsten By Don Miller

Although he says he doesn't want to own gold, the world's most famous investor has taken a shine to what may be the most precious metal of the 21st century – tungsten.

Tungsten – element number 74 on the periodic table -- is a super-hard metal used in everything from armor-piercing tank shells to wedding rings.

And the world is running out of it – fast.

http://www.resourceinvestor.com/2012/06 ... n-tungsten

[winston]

Buffett pessimistic on economy: CNBC

(Reuters) - July 12 (Reuters) - Warren Buffett made some of his most pessimistic comments on the economy in recent memory on Thursday, telling CNBC that things have slowed in the United States in the last six weeks.


http://www.reuters.com/article/2012/07/ ... sinessNews

[winston]

A Buffett Strategy That Stands the Test of Time by Jason Jenkins

The Moat Strategy

Buffett has said he seeks “economic castles protected by unbreachable ‘moats.’”

What he means is that when the price is right, you want to buy companies that dominate their industry for now and the foreseeable future.

Basically, these are industries where the barriers to entry are just so overwhelming they discourage any would-be competitors.

This “moat” concept has become pretty mainstream. In fact, Morningstar has embraced it and describes five ways in which moats develop.
1. The network effect where a service becomes increasingly more valuable, as more consumers begin to use it.
2. A situation where consumers have no incentive to embrace the competition.
3. A company possesses a virtual monopoly or control of a limited market.
4. Registered brands, patents and licenses that give a company steady cash flow.
5. A pricing advantage where you can produce a better quality product at a lower cost than the competition

http://www.investmentu.com/2012/August/ ... ategy.html