Warren Buffett 03 (May 15 - Dec 23)

[winston]

Warren Buffett Buys Over 5% Stakes Each in 5 JP Firms

Warren Buffett's Berkshire Hathaway (BRK.A.US) announced acquisition of over 5% shareholdings in five large Japanese trade houses.

The investment magnate acquired stakes in Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui & Co and Sumitomo Corp.

Source: AAStocks Financial News

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Why Buffett's bet on Japan could turn on higher inflation, weakening dollar
https://www.reuters.com/article/us-usa- ... SKBN25R2XB

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Happy 90th Birthday, Warren Buffett!
https://m.youtube.com/watch?v=8U6ZraAj5Q4

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Warren Buffett recommended these 4 books to learn about investing
https://www.cnbc.com/2020/12/24/books-w ... sting.html

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Not a fan of bonds
On the topic of investing, Buffett said ultra-low interest rates around the world diminished the appeal of the bond market.

“Bonds are not the place to be these days,” Buffett said. “Fixed-income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future.”

Buffett noted that the benchmark 10-year Treasury yield had fallen drastically to 0.93% at the end of 2020 from 15.8% in September 1981. Meanwhile, investors earn a negative return on trillions of dollars of sovereign debt in Germany and Japan, he added.


Warren Buffett says ‘never bet against America’ in letter trumpeting Berkshire’s U.S.-based assets
https://www.cnbc.com/2021/02/27/warren- ... ssets.html

[winston]

1) Know the difference between illusion and reality

“Investing illusions can continue for a surprisingly long time. At a point, also, the soaring price of a promoted stock can itself become the “proof” that an illusion is a reality.

Eventually, of course, the party ends, and many business “emperors” are found to have no clothes.

Financial history is replete with the names of famous conglomerateurs who were initially lionized as business geniuses by journalists, analysts and investment bankers, but whose creations ended up as business junkyards.”
 
As investors, we need to be able to tell the difference between truly great businesses and those that are artificially inflated because of illusions created by the founder or the media. Can you guess the stocks or assets I am thinking about?

[winston]

2) Bonds are not the place to be these days
 
“Can you believe that the income recently available from a 10-year U.S. Treasury bond – the yield was 0.93% at yearend – had fallen 94% from the 15.8% yield available in September 1981?

Fixed-income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future.”
 
I have said this all along… From a rational point of view, it’s unthinkable to own bonds with such low yields.

One of the greatest myths told by Wall Street is that bonds are safer than stocks.

[winston]

3) Berkshire buybacks stocks

Berkshire repurchased about $9 billion of its stock in the last quarter.

For all of 2020, Berkshire said it bought back $24.7 billion of its own stock, topping its old record of $5 billion in 2019.

[behappyalways]

You don't need to invest till the right stock at the right price appears. That's something that most of us need to learn

為什麼大多數人投資都不賺錢？因為他們犯了這個錯誤... ► 巴菲特的致富哲學「棒球理論」 - Warren Buffett 巴菲特

https://m.youtube.com/watch?v=BAMiemNe2fk

[behappyalways]

At the 2017 Berkshire Hathaway (BRK-A, BRK-B) annual shareholders meeting, Buffett fielded a question about the Buffett indicator as well as Robert Shiller's legendary CAPE ratio.

He had this to say: “Every number has some degree of meaning. It means more sometimes than others...

And both of the things that you mentioned get bandied around a lot. It’s not that they’re unimportant… They can be very important. Sometimes they can be almost totally unimportant.

It’s just not quite as simple as having one or two formulas and then saying the market is undervalued or overvalued.” (Emphasis ours.)

In that response, Buffett went on to say "the most important thing is future interest rates," arguing that low rates justify higher valuations.

What Warren Buffett said about the 'Buffett Indicator'

https://finance.yahoo.com/news/warren-b ... 09465.html