Warren Buffett 02 (Feb 10 - May 15)

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On CNBC:-

WB worst's stock pick was Bershire Hathaway

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“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information.

What is needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.”

– Warren Buffett

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10 Famous Warren Buffett Quotes for Any Market

Warren Buffett quotes are popular with stock market investors because they are folksy but insightful. After all, Warren Buffett isn’t just some slouch from Omaha – he’s one of the most successful value investors alive. That means when Buffett talks, investors listen.

Over the years Warren Buffett’s quotes have been used to shine some light on the particular headlines of the day. But here are 10 of Buffett’s most famous quotes that are good advice for any market.


Buffett Quote #1: Not Every Investment Can Be a Home Run

I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.


Buffett Quote #2: Weighted Portfolios Can Be Good – and Profitable

Wide diversification is only required when investors do not understand what they are doing.


Buffett Quote #3: Never Pay Retail

Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.


Buffett Quote #4: Invest in Companies, Not Their CEOs

I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.


Buffett Quote #5: Remember that Past Performance Means Nothing

If past history was all there was to the game, the richest people would be librarians.


Buffett Quote #6: Don’t Over Think It

The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.


Buffett Quote #7: There Is No Magic Chart or Statistic for Investing

Beware of geeks bearing formulas.


Buffett Quote #8: Know When to Cut Your Losses

Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.


Buffett Quote #9: Know Your Strengths – And Weaknesses

I happen to have a talent for allocating capital. But my ability to use that talent is completely dependent on the society I was born into. If I’d been born into a tribe of hunters, this talent of mine would be pretty worthless.


Buffett Quote #10: Challenges Can Expose the Truth

Only when the tide goes out do you discover who’s been swimming naked.


http://www.investorplace.com/22619/10-f ... en=3879240

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Warren Buffett: Forget gold, buy stocks

http://money.cnn.com/2010/10/18/pf/inve ... /index.htm

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Always so true

Your goal as an investor should be simply to purchase, at a rational price, a part interest in an easily understood business whose earnings are virtually certain to be materially higher, five, ten, and twenty years from now. Over time, you will find only a few companies that meet those standards- so when you see one that qualifies, you should buy a meaningful amount ot stock. "

-Warren Buffett

[behappyalways]

lol so true.....

I'd be a bum on the street with a tin cup if the market were always efficent - Warren Buffett

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Warren Buffett is making a big bet on higher interest rates
From Bloomberg:

Warren Buffett's Berkshire Hathaway Inc. sold $1.5 billion of mostly fixed-rate debt to retire floating-rate notes at a time when government bond yields are rising and the U.S. is showing signs of economic improvement.

"The market scrutinizes Buffett's moves very closely and this would indicate he's thinking interest rates in the longer term may go up," Vijay Chander, Hong Kong-based head of credit strategy at Standard Chartered Plc, said in a phone interview. "That's consistent with our house view that the U.S. economy is improving."

The world's most successful investor locked in interest payments on most of the debt as a report showed U.S. manufacturing expanded in December at the fastest pace in seven months, spurring confidence the world's biggest economy is gaining momentum.

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Buffett: China's Economy Isn't About to Surpass US By Forrest Jones

Warren Buffett isn’t worried about China surpassing the United States, staying optimistic about America’s future despite other nations rising in power.

"We had four million people here in 1790. We’re not more intelligent than people in China, which then had 290 million people, or Europe, which had 50 million. We didn’t work harder, we didn’t have a better climate, and we didn’t have better resources. But we definitely had a system that unleashes potential," Buffett told Vanity Fair.

"This system works. Since then, we’ve been through at least 15 recessions, a civil war, a Great Depression …. All of these things happen. But this country has optimized human potential, and it’s not over yet," the chief executive of Berkshire Hathaway said.

By 2050, China's economy will be larger than that of the United States, but not by much, HSBC reports.

The financial institution says that China's economy will grow to $24.6 trillion, with the U.S. very close on its heels at $22.3 trillion, according to The Telegraph.

India will trail in third place at $8.2 trillion.

Meanwhile, the Buffett-backed, China-based automaker BYD Co. said its sales fell 15 percent to 51,300 vehicles in December amid rising competition from overseas rivals including General Motors Co. in China, the world’s biggest vehicle market.

The automaker sold 519,806 cars last year, 16 percent more than a year earlier, BYD said in a statement. The figure is 13 percent short of the 600,000 unit target set in August by Shenzhen, southern China-based BYD, which didn’t give a reason for missing the goal.

Chinese automakers such as BYD and Zhejiang Geely Holding Group Co. face a sales challenge from car companies including GM and Volkswagen AG as rising incomes prompt shoppers to buy more expensive foreign models. GM and Tokyo-based Honda Motor Co. are also adding new, lower priced brands to take on local rivals in China.

http://www.moneynews.com/StreetTalk/Buf ... /id/381970

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Buffett Stomps S&P In 2010 By Prieur du Plessis

Shares of Warren Buffett’s Berkshire Hathaway (Class A) have finished 2010 with a 21.4% return, outperforming the benchmark S&P’s 12.8%.

The win reverses Buffett’s defeat in 2009, when the S&P’s 23.5% return clobbered Berkshire’s 2.7% number.

Berkshire has beaten the S&P in four of the past five years, and six of the past ten years. The full record is below.

http://www.dailymarkets.com/stock/2011/ ... p-in-2010/

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Warren Buffett: This is "the single most important decision" for buying any stock

Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway Inc., said he rates businesses on their ability to raise prices and sometimes doesn't even consider the people in charge.

"The single most important decision in evaluating a business is pricing power," Buffett told the Financial Crisis Inquiry Commission in an interview released by the panel last week.

"If you've got the power to raise prices without losing business to a competitor, you've got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you've got a terrible business."

Buffett has also built stakes in firms like Coca-Cola Co. and Kraft Foods Inc., which rely on the appeal of their brands to attract and keep customers.

"The extraordinary business does not require good management," Buffett said in the interview, which was conducted on May 26 in Omaha, Nebraska.

Pricing Power

"I knew nothing about the management of Moody's," said Buffett. "If you own the only newspaper in town, up until the last five years or so, you had pricing power and you didn't have to go to the office."

A dominant position can't prevent a bad manager from destroying a company over time, said Benjamin E. Hermalin, a professor of economics at the University of California, Berkeley's Haas School of Business.

"If you have a really dominant position you can survive for quite a long time with bad management but eventually it will catch up to you," said Hermalin. "In the short run I would agree with Buffett but in the longer-run perspective there is something to be said for having a good manager."


Source: Bloomberg