Warren Buffett 01 (May 08 - Jan 10)

[kanglc]

http://www.youtube.com/watch?v=RlxTYSnRDZ8

[winston]

Warren Buffett's four key indicators led him to this stock
From Dan Ferris in Extreme Value:

To be a successful investor, you must think independently. But I'm only human, so it feels great to find a stock you believe is an excellent company with a first-class management, recommend it to your readers, remind everyone when it gets cheap, defend it against numerous critics... and then watch Warren Buffett put close to $100 million into it.

That stock is ExxonMobil.

Don't get me wrong. I'm not saying you should buy everything Warren Buffett buys. But it's hard not to feel good when the most successful investor in history buys a stock you already own.

Buffett bought just shy of 1.3 million shares (worth around $95 million). That's a small position for Berkshire, but he doesn't take his small bets lightly. Buffett doesn't buy unless an investment fits into the four filters he and Charlie Munger have used for decades (as outlined in The Four Filters Invention of Warren Buffett and Charlie Munger, by Bud Labitan):

• An understandable, first-class business
• A sustainable competitive advantage
• An able and trustworthy management
• A bargain price

Buffett found all of those in ExxonMobil, at a price only slightly above our maximum buy price. I'm not saying I'm as good as Warren Buffett, but we seem to have gotten this one right.

If you know the four filters, you don't need to play guessing games about why Warren Buffett bought ExxonMobil. The only criterion not present in the four filters is Buffett's growing concern over inflation. Buffett likely sees ExxonMobil, like most oil companies, as a hedge against inflation.

[kennynah]

• A sustainable competitive advantage
• An able and trustworthy management
• A bargain price

all these are subjective...

[LenaHuat]

Doris, Warren's sister, is going for broke too to help city:

Her goal is to give away the money she has left in the time she has left. As Doris Buffett says, "I'd love that last check to bounce."

She swears she's doing it for more down-to-earth reasons - because she can and because it never occurred to her not to.

Doris Buffet gives away $80 m

[winston]

Buffett Dumping More & More Moody’s (MCO) by Jon C. Ogg

It wasn’t that long ago that we had given a list of stocks that Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) needed to dump to help pay for its Burlington Northern Santa Fe (NYSE: BNI) acquisition. And to trim its equity portfolio. Moody’s Corp. (NYSE: MCO) was one of those stocks. He had already lightened up some since, and on Monday evening came a filing at the SEC confirming that Buffett was dumping more stock.

The filing was 3 groups of stock coming to a total of 3,454,791 share sold. That leaves Buffett’s Berkshire Hathaway with a position of 31,902,602 shares remaining. We doubt he’ll be out of this position entirely by the end of the year, but the writing has been on the wall here for two years that the ratings agency game and dominance is over.

The weighted average sales price here was north of $26.00, and Moody’s common stock has a 52-week trading range of $15.57 to $31.79. This was a $60 and $70 stock as recently as mid-2007 when the cracks in the ratings agency model were already coming front and center. Buffett has finally capitulated on this one.

http://247wallst.com/2009/12/15/buffett ... more-55886

[winston]

Long article. I've posted the summary. Link below..

10 investing basics from Buffett

The Oracle of Omaha became one of the world's richest people by adhering to simple but critical tenets. Here are his rules for smart living and savvy investing.

By Michael Brush, MSN Money

Last year's market madness didn't just flush away wealth. It also washed away a lot of investors' confidence.

So let's consider a dose of optimism, wisdom and insight: the basics as taught by that perennial investing Yoda, Warren Buffett.

Lesson No. 1: Be frugal
Lesson No. 2: Wait for the 'fat pitch'
Lesson No. 3: Be a contrarian
Lesson No. 4: Stick with what you know
Lesson No. 5: Don't depend on others to say you're right
Lesson No. 6: Buy companies cheap
Lesson No. 7: Look for companies with economic moats
Lesson No. 8: Buy big, concentrated positions
Lesson No. 9: Hold for life
Lesson No. 10: Believe in America

http://articles.moneycentral.msn.com/le ... spx?page=1

[millionairemind]

More ppe. have gotten rich writing about WB than investing like him.

This is another misconception about "HOLD FOR LIFE". If one is open minded enough, one might want to pick up the book "Trade like Warren Buffet".

[Musicwhiz]

More ppe. have gotten rich writing about WB than investing like him.

This is another misconception about "HOLD FOR LIFE". If one is open minded enough, one might want to pick up the book "Trade like Warren Buffet".

Hi MM, I agree. No such thing as hold for life. More like "Hold till the Management Team screws up big time"!

[winston]

Agree. I think it's hold until fundamentals change or when you see another better opportunity.

[Poles]

in hokkien, we say Tree Collapse Monkeys run......