Warren Buffett 02 (Feb 10 - May 15)

[winston]

Is Warren Buffett Passing The Torch Or Prepping Something Big ?

Buffett cut long-held holdings of J&J, P&G and Kraft Foods. Why?

Berkshire Hathaway took the ax to some of the longest-held names in its stock portfolio last quarter, sparking questions over just how much sway Warren Buffett is sharing with his recently-installed investing colleagues.

In the last two years, Buffett has brought in hedge fund managers Todd Combs and Ted Weschler to help manage a chunk of the firm’s approximately $75 billion equity portfolio. Both managers were expected to start small and gradually manage more and more of the company’s holdings until ultimately taking over whenever Buffett steps down.

An SEC filing Tuesday detailing Berkshire’s portfolio at the close of the second quarter revealed significant cuts to holdings in Johnson & Johnson, Procter & Gamble and Kraft Foods, all stalwarts of Buffett’s portfolio.

http://www.forbes.com/sites/steveschaef ... =dailycrux

[winston]

How Warren Buffett is Different from Most Investors, Part 1

http://alephblog.com/2012/08/25/how-war ... rs-part-1/

[winston]

The teachings of Warren Buffet By P V Subramanyam

What Warren Buffet says about basic investing, spending, savings are so true. Most of us know it, however too many of us do not live it.

If it does make a change in your life, thank HIM (I mean God) because this is common sense. WB said it once, I am just reproducing it.


1. On Earning:

Do not depend on a single income. Invest and create a second/ third source of income:
This means when you are young your first task should be saving and investing. By creating a second source of income you are quickly reducing your dependence on your job. This could help you to set out on your own one day. The quicker you can do it, the better.


2. On Spending:

If you buy things that you do not need, you may soon have to sell things you need:

It kind of summarizes Gen X’s reaction towards ‘luxuries’. As a part of Gen X we were perhaps criticised for some of our expenses, so it could be a generational thing even for WB. However, having goals and knowing where you are going, and not spending just to ‘show off’ are important lessons for all generations.


3. On Savings:

Do not spend what is left after spending, instead spend after you save/invest:
Also called ‘Pay Yourself First’. If you realise that investing in a pension plan or for your kid’s education is just helping you to save more later on. It is not a sacrifice, it is just postponing consumption. So understand, invest and then spend.


4. On taking Risk:

Never test the depth of the river with both your feet:

If you are doing something, do small. If you are a first gen investor, do not be carried away by equity lovers like me and put all your money in equity. Do a SIP with a small amount, and test the waters. Do a SIP of Rs. X (which could be 10% of your take home pay) for 5 years and then step up. And for heavens sake understand risk of inflation, and the concept of real returns


5. On Investing:

Do not put all eggs in one basket:

Immaterial of who you are and how much you understand, create a portfolio. A full range lunch plate is always better than just one item. So create a portfolio with bonds, bond funds, PPF, NSC, equity, mutual funds, and on the risk side medical and term insurance.


6. On Expectation:

Honesty is expensive, do not expect it from cheap people:

Not everybody is honest, nor does everybody want to be honest. Honest advisers are difficult to find especially in Health and Wealth, be careful.

http://sg.finance.yahoo.com/news/the-te ... uffet.html

[winston]

This housing trend is gaining momentum

Residential real-estate prices increased in the year ended August by the most in two years, a sign housing will continue to boost U.S. economic growth.

The S&P/Case-Shiller index of property values in 20 cities rose 2 percent from August 2011, the biggest year-to-year gain since July 2010, after climbing 1.2 percent the prior month, the group said today in New York.

The median forecast of 25 economists in a Bloomberg survey projected a 1.9 percent gain.


Source: Bloomberg

[winston]

The Single Stock Trait Warren Buffett Mentioned 20 Times… That Produces Billions In Profits

Author: StreetAuthority

http://www.yolohub.com/trading/the-sing ... in-profits

[winston]

Warren Buffett’s Greatest Fear by Joshua M Brown

Warren Buffett seems fairly fearless in both his writings and media appearances, pretty much no matter what's going on. I suppose a cash hoard of between $20 and $40 billion at all times is a pretty good cushion.

But I was very interested to come across this post by Samuel Lee at Morningstar that reveals the thing he worries most about, and its highly logical when you think about it...

"We're going to have something in the way of a major nuclear event in this country. It will happen. Whether it will happen in 10 years or 10 minutes, or 50 years ... it's virtually a certainty."

http://www.thereformedbroker.com/2013/0 ... test-fear/

[winston]

Why Warren Buffett Hates Gold By Chad Tracy

But the Oracle of Omaha is also well known for avoiding certain investments – especially gold.

While he’s is quick to point out that gold has served some investors well, particularly during times of high inflation, Buffett has never warmed up to gold as an investment.

Why not?

The answer has to do with the difference between what Buffett calls productive versus nonproductive assets.

http://www.thetradingreport.com/2013/02 ... ates-gold/

[winston]

How to Invest Like Buffett: Three Key Strategies


First, for Buffett, the biggest factor for determining an investment is whether a company has a competitive advantage and how durable that competitive advantage is.

Buffett developed the concept of the durable competitive advantage to uncover companies that had key advantages in brand power, earnings stability, evergreen products/services that are in high demand, and a proven track record of recurring sales.

In fact, the majority of Buffett's biggest winning investments have been in companies that possess a durable competitive advantage that acts as a "moat" to block competition, survive recessions, and weather industry setbacks.


The second key factor is that Buffett didn't get rich by "playing the stock market," but by playing the people and institutions who play the stock market.

It is a paradox of human nature that people will ignore their long-term interest due to their short-term mentality, but that is how Buffett maintains a distinct edge over other investors and the market.

Buffett knows that Wall Street and investors are typically short-sighted, and when any negative news comes, an appropriately priced stock rapidly becomes an undervalued stock.

Then Buffett exploits the market's overreactions by scooping up the stock at its bargain price.

Buffett's final key success factor is his incredible patience.

Buffett devotes hours of study to go over annual reports. He will continue to track a company's performance in the
hopes that one day it will trade at an attractive valuation, at which point he will quietly buy as big of a position as possible.

Once he owns a stock, he will hold onto it patiently until a catalyst comes along to unlock its value potential.

One of the best examples of this is Buffett's Washington Post purchase.

Buffett invested $10 million in The Washington Post Co. (NYSE: WPO)in 1973, he sat on the position for almost three years while the stock sat a virtual standstill around $5.69 and barely registered a heartbeat. It did decline for a period, down about 25% a year-and-a-half after Buffett's investment.

However, the stock went on to trade as high as $942 a share and log a more than 16,000% return, becoming one of Buffett's greatest investment stories. His original $10 million turned into more than $1 billion

A 16,000% return? It certainly pays to study how to invest like Buffett.


http://moneymorning.com/2013/03/15/how- ... n-buffett/

[behappyalways]

A nice watch

DOCUMENTRY- WARREN BUFFETT THE WORLDS GREATEST MONEY MAKER
http://www.youtube.com/watch?v=eRflufmkwbw

[behappyalways]

How Warren Buffett defines success
http://money.cnn.com/video/news/2013/05 ... index.html


Warren Buffett's investing advice
http://money.cnn.com/video/magazines/fo ... ce.fortune