Tuesday

We found 29 Warren Buffett articles for you this month

Warren Buffett's Acquisitions
Warren Buffett loves credit cards and GM - CNNMoney, 17 November 2014
The legendary investor increased his stakes in Visa (V) and Mastercard (MA) last quarter by 20% and 16%, respectively, according to an SEC filing released Friday that shows the holdings of Buffett's company Berkshire Hathaway (BRKA).

Why Warren Buffett just bought Duracell - CNNMoney, 14 November 2014
All signs indicate that Buffett has once again found another wonderful business at a fair price. The last few months have been a busy for Warren Buffett's Berkshire Hathaway and today we learned its buying spree continued.

Warren Buffett's Berkshire Hathaway adds Express Scripts, dumps Deere - Fortune, 14 November 2014
Warren Buffett's Berkshire Hathaway likes the pharmacy business, again. In the third quarter, Buffett's insurance conglomerate added shares of Express Scripts (ESRX) to its widely followed investment portfolio.

Warren Buffett's Berkshire buys Charter Communications in Q3 - GuruFocus, 13 November 2014
Warren Buffett (Trades, Portfolio)'s company Berkshire Hathaway (BRK.A) (BRK.B) has reported buying a new stock in the third quarter: Charter Communications Inc. (CHTR). As a small holding, one of Buffett's two portfolio managers, Ted Weshler or Todd Combs, likely bought the stock.

Berkshire Hathaway (BRK.B) stock higher today on Duracell Battery acquisition - The Street, 13 November 2014
Shares of Berkshire Hathaway Inc. (BRK.B) are up 0.43% to $146.14 in midday trading Thursday, after the company said it is acquiring Procter & Gamble Co's (PG) Duracell battery business in exchange for its $4.7 billion stake in the company, Reuters reports.

Buffett's BNSF blocks Tank Cars to ease rail traffic jam - Bloomberg, 12 November 2014
BNSF Railway Co. (BRK/A), the carrier owned by Warren Buffett's Berkshire Hathaway Inc.(BRK/B), is blocking some shippers from adding tank cars to its system in a bid to prevent a worsening of the gridlock that sparked regulators' ire.

Buffett said he paid a lot. $15 billion later, BNSF is a Cash Machine. 'He stole it' - Bloomberg, 10 November 2014
Days after Warren Buffett announced his $26.5 billion buyout of railroad BNSF, he insisted that he'd paid a steep price to own a business that would benefit his company, Berkshire Hathaway Inc. (BRK/A), over the next century.
 Warren Buffett - The Investor
Significant Changes in Buffett and Berkshire Hathaway Holdings - 24/7 Wall St, 14 November 2014
Berkshire Hathaway Inc. as released its public equity holdings as of September 30, 2014. Warren Buffett's portfolio has recently undergone some radical changes on the surface, some of which are good and some of which look mixed. Also, some of the substantial change has taken place since the end of the last reporting period and we have made an effort to capture those changes.

Bend it like Buffett - Forbes, 14 November 2014
Warren Buffett is saving taxes again, this time via Berkshire Hathaway's $4.7 billion purchase of Duracell from Procter & Gamble. Shrewd business deals that also deftly avoid taxes are becoming a kind of trademark for the billionaire chairman of Berkshire Hathaway.

Should Investors ever bet against Warren Buffett? - Benzinga, 13 November 2014
News that Berkshire Hathaway Inc., notably headed by Warren Buffett, is going to acquire Duracell from Procter & Gamble Co has captured the financial media's limelight Thursday morning.

Where's your Dividend, Warren Buffett? - Fox Business, 13 November 2014
Berkshire Hathaway is buying the Duracell Battery business from Procter & Gamble in a deal valued at about $3 billion, net of the $1.7 billion Procter is plowing into Duracell before closing. Berkshire will use $4.7 billion of its P&G stock to buy the unit.

What Murdoch and Buffett can learn from the makers of Windex - Yahoo Finance, 13 November 2014
Warren Buffett says he has a succession plan, one that includes his son Howard taking over as non-executive chairman. As far as CEO, names like Todd Combs and Ajit Jain have been floated, and Buffett has even joked about the succession plan for his number two, Charlie Munger.

6 Career tips from Buffett, Branson & World's best coaches - Forbes, 11 November 2014
It's that time of year when your boss will judge whether you're likely to hit or miss your annual goals, and undoubtedly you're being pushed to commit to even more ambitious plans for next year. Before you dive in, consider these questions from Warren Buffett, Richard Branson and the world's top executive coaches that could make all the difference in your career.

Buffett, not a fan of Capital-Heavy Firms, spends $12B on them in 2014 - The Wall Street Journal, 11 November 2014
Warren Buffett is not a fan of capital-intensive businesses, but over the years he and his business partner Charlie Munger have modified their stand. As Mr. Buffett told the Journal last month: "Charlie and I for decades said that the best businesses don't need capital and that's still the case.

What will set Warren Buffett's Company apart when he's gone? - Wall Street Journal, 26 October 2014
Warren Buffett likes companies that have wide "moats" – his term for competitive advantages – and has built Berkshire Hathaway Inc. into a gigantic conglomerate by buying or investing in companies protected by moats.

Buffett lost $2 billion, but there's good news - CNNMoney, 24 October 2014
The bad news for Warren Buffett: Two of his firm's largest investments have lost the company $2.3 billion this week. The good news: That's about the extent of his U.S. losses so far this year.

 General News
Stop listening to people like Warren Buffett on taxes - Forbes, 19 November 2014
I admire Warren Buffett. I admire his genius. I admire his ability to create wealth. But the recent elections show that Americans do not want to listen to billionaires advocating for higher taxes.

Warren Buffett is the world's greatest investor, but Doug Kass is still short Berkshire - Yahoo Finance, 19 November 2014
At the 2013 Berkshire Hathaway annual meeting, aka "The Woodstock of Capitalism." tens of thousands gathered to show their devotion and affection for the company and its founder, Warren Buffett. But one invited guest came not to praise "the Oracle of Omaha" but to bury him -- at least rhetorically.

How much does Berkshire Hathaway like Consumer Goods? - Benzinga, 13 November 2014
Berkshire Hathaway Inc. (NYSE: BRK-A) and Warren Buffett have long-standing investments in the financial sector, including early investments in insurance. What may not get as much attention is another area that Berkshire likes holding for the long-term: consumer goods.

Berkshire Hathaway: Thumbs up or Thumbs down? - Forbes, 12 November 2014
Buffett's property is a good acting stock, up 21% year-to-date. Among the top 25 largest capitalizations in the S&P 500 Index, only 5 names did better. Fourteen of the top 25 rest as underperformers.

Keefe, Bruyette & Woods raises price target on Berkshire Hathaway - Benzinga, 10 November 2014
Keefe, Bruyette & Woods reiterated its Market Perform rating on Berkshire Hathaway Inc. (NYSE: BRK-A) and raised its price target from $210,000 to $220,445.

Berkshire Hathaway Insurance, Energy Units aid Q3 Earnings - Zacks, 10 November 2014
Berkshire Hathaway Inc. (BRK.B) reported third-quarter 2014 operating earnings of $1.91 per share, way ahead of the Zacks Consensus Estimate of $1.70. Earnings also compare favorably with $1.49 per share reported in the year-ago quarter.

Berkshire Hathaway reports lower Q3 Earnings - Benzinga, 08 November 2014
Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) reported Q3 financial results Friday. Net operating earnings came in at $4.617 billion, below the $5.053 billion reported for the prior year's period.

Berkshire profit slips on Buffett's Tesco 'mistake' - Bloomberg, 08 November 2014
Warren Buffett's Berkshire Hathaway said third-quarter profit dropped 8.6 percent on investment results, including an impairment tied to a holding of U.K. retailer Tesco. Bloomberg's Noah Buhayar takes a look at the numbers on "Taking Stock." (Source: Bloomberg)

Trust works for Berkshire Hathaway's Charlie Munger - GuruFocus, 31 October 2014
It is often said that opposites attract. That piece of conventional wisdom usually applies to romantic relationships, but it can apply to professional relationships, too. Take Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio), for example. Buffett calls Munger his "partner," and, while they aren't exactly opposites, there are ways in which they differ.

How Buffett's Brooks running plans to become a $1 billion brand - Fortune, 31 October 2014
Brooks Running Co., a subsidiary of Warren Buffett's Berkshire Hathaway (BRK.A -0.24%), hit the $500 million mark in annual sales last April. The company hit that milestone as a result of CEO Jim Weber's efforts over a decade to specialize on running, rather than trying to be a mini-Nike (NKE -1.61%) and be all things to all people.

Buffett Pal Gottesman says don't expect another Berkshire - Bloomberg, 29 October 2014
David "Sandy" Gottesman, who became a billionaire by buying shares decades ago in the company his friend Warren Buffett was building, said it's unlikely another such business will ever be created.

Berkshire Hathaway sells marketing unit - Reuters, 28 October 2014
Warren Buffett's Berkshire Hathaway Inc conglomerate has sold a marketing and direct mail unit to a Wisconsin businessman, according to a statement on Tuesday.

Munger gives $65 million to U.C. Santa Barbara - Bloomberg, 24 October 2014
Charles Munger, the vice chairman at Berkshire Hathaway Inc. (BRK/A), is giving $65 million to the University of California at Santa Barbara for a housing facility where visiting scientists can gather to discuss physics.  


Friday

13 Facts on How Ebola Will Influence Investment Markets

With the market pulling back sharply over the last four weeks from recent all-time highs, we think it a fine time to remind folks that through the years there have been numerous geopolitical issues, economic downturns and market declines that have scared off fair weather investors. Just in my 27 years at Al Frank, we’ve witnessed Black Monday, Iraq 1, the collapse of Long Term Capital Management, the Asian Contagion, Presidential Impeachment, theTech Bubble, 9/11, Accounting Scandals, Iraq II, the Housing Bust, the Great Recession and the Flash Crash, to name a few events that have caused consternation.
No doubt, the additions to the Wall of Worry over the first three quarters of the year—the slowdown in economic growth in China, the continued near-recession in Europe, the drama in Ukraine/Russia, the contraction in Q1 U.S. GDP, the debt issues in Argentina, the hostilities in Iraq/Gaza and the Ebola scare—have provided plenty of fodder for the Doom and Gloom crowd to convince fearful money to stay sidelined, but we remain optimistic on the balance of 2014 and beyond. This is the case, even as we could arguably add quite a few new bricks to the Wall of Worry just by perusing the news over the last few weeks…
  1. Durable goods orders plummet
  2. Existing home sales weaken
  3. Treasury works to curtail “inversions”
  4. War on ISIS underway
  5. Russia remains a wildcard
  6. Alibaba IPO euphoria
  7. Eurozone economic data deteroriates
  8. China apparently chooses not to stimulate
  9. Commodity prices sink
  10. Dollar rallies
  11. End of Fed tapering imminent
  12. Retail sales disappoint
  13. Volatility spikes
We are not cavalier in our lack of grand concern for the latest events, as we know that short-sighted traders can send stocks sharply lower very quickly and understand that the current downturn could extend into correction territory, but we think it is far better to stay on course with one’s long-term investment objectives than to try to time the gyrations of an often schizophrenic market.
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We never lose sight of the admonitions of Peter Lynch and Warren Buffett, the former stating, “The key to making money in stocks is not to get scared out of them,” and the latter reminding us, “The stock market is designed to transfer money from the active to the patient.” Of course, we also know that equities have generated handsome returns on average dating back to the 1920s, so the odds have historically been in the favor of the stock investor. (As always, we must remember that past performance is never a guarantee of future returns.)
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Though Ebola news on the domestic front calmed a bit over the weekend, the death toll in West Africa continues to rise and we understand that it is nearly impossible to quarantine a continent. Obviously, we are a long way away from finding a cure for the disease and it would seem that U.S. healthcare officials are only beginning to get their arms around the treatment and containment protocols. Hard to imagine that developments related to Ebola won’t get worse before they get better, but we do not think that there will be a long-term impact on the equity markets. After all, stocks have already survived HIV, SARS, Avian Flu, Swine Flu and a host of other ailments. Indeed, capitalism’s immune system is quite strong.
Viruses
Interestingly, it would seem that Wall Street pros were far more concerned about the recent downturn than folks on Main Street. After all, the latest sentiment survey from the American Association of Individual Investors (AAII) saw a 2.7 percentage point increase in the number of optimists to 42.7%, compared to the historical average of 39.0%. Perhaps, retail investors really are heeding the advice of the Oracle of Omaha who states, “As far as I am concerned, the stock market doesn’t exist. It is only there as a reference to see if anybody is offering to do anything foolish.”
To be sure, the latest swoon is the worst we’ve seen since 2012, and the average stock lost far more than the 7.3% negative return of our benchmark Russell 3000 index from September 18 – October 16. And, believe it or not, the average stock actually was down in Friday’s trading, as the Russell 2000 small-cap index dropped 0.35%, even as the Russell 3000 advanced 1.14%. Still, given the 36%+ returns enjoyed by our newsletter portfolios in 2013 and the 14%+ gains turned in during 2012, those who have a long-term investment time horizon are hopefully taking the resurgence of volatility in stride.
R3KPullbacks
Obviously, it is no fun to have surrendered the modest gains that had been posted earlier in 2014 and we know that we still have two weeks to go in the seasonally weak September-October time frame…
CalendarTwoMonth
…but we remain excited about the long-term prospects of our broadly diversified portfolios. Reasons for our optimism include: many stocks are now 5% to 10% or more less expensive than they were just a month or so ago (valuations are less worrisome), dividend yields have moved higher (Buckingham Portfolio now yields 2.8%), interest rates have skidded lower (the 30-year Treasury now yields 3.0%), investor sentiment is hardly enthusiastic (domestic equity mutual fund flows remain negative), central bankers around the world have renewed reason to focus more attention on aiding economic growth than on fighting inflation (we heard as much last week from both ECB President Mario Draghi and St. Louis Fed President James Bullard) and domestic economic growth appears to remain solidly on track.
One stock we recommend adding to a broadly diversified portfolio is Baxter Int’l (BAX). The company develops, manufactures and markets products that focus on hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions. While the firm’s biopharma and medical products businesses will split in two in 2015, we believe that com­petitive advantages should remain strong, supported by the fact that more than two-thirds of Baxter’s revenue is generated from market-leading products. With BAX shares down in price on the year, we like the sizable upside potential going forward.
First published in Forbes.com

Wednesday

We found 34 articles about Warren Buffett for you to read this month

Buffett's gain wiped out as IBM abandons Earnings Goal - Bloomberg, 20 October 2014
Warren Buffett's margin of safety just got erased. The billionaire investor spent about $10.9 billion three years ago amassing a stake in International Business Machines Corp. (IBM) and has since bought more. The computer-services company's surprise announcement today that it was abandoning its 2015 earnings forecast caused the stock to plunge, lowering the value of Buffett's holding by about $900 million.

Buffett reduces stake in Tesco to under 3 percent - Associated Press, 16 October 2014
Warren Buffett's Berkshire Hathaway has reduced its stake in British retailer Tesco to under 3 percent, offering a fresh slap to the struggling company.

Why Warren Buffett wants to sell houses, cars and a whole lot more – CNN Money, 13 October 2014
Even those with only a passing interest in business affairs are familiar with the grandfatherly visage and folksy wisdom of investing sage Warren Buffett. And his long-time investing vehicle, Berkshire Hathaway, is almost a household name as well. Yet, for the most part, the Berkshire brand has remained behind the scenes.

Is Berkshire Hathaway becoming the virgin of unsexy Brands? - Forbes, 07 October 2014
Berkshire Hathaway has bought the nation's 5th largest private auto dealer, and its announced plans to buy more seems to foretell a Coke vs. Pepsi-like battle with AutoNation AN +1.89%. What's less obvious, or altogether clear, is whether Warren Buffett sees himself as a frumpy version of consummate brand-extender Richard Branson.

Warren Buffett: I made a mistake on Tesco - CNBC, 03 October 2014
Warren Buffett said he was wrong when it came to investing in Tesco. "With Tesco, we definitely made a mistake. I made a mistake on that one more than anybody else made a mistake ... That was a huge mistake by me," the billionaire told "Squawk Box" on Thursday.

Buffett's biggest deals and how Van Tuyl stacks up – The Wall Street Journal, 02 October 2014
Warren Buffett announced Berkshire Hathaway Inc.'sBRKA +0.17% latest acquisition Thursday morning — the Van Tuyl Group, the fifth-largest auto dealership in the U.S

Berkshire's entrance won't radically alter Dealership Landscape - Morningstar, 02 October 2014
Buffett will increase the competition for acquisitions, but there are still plenty of opportunities for the publicly traded dealers in this fragmented market.

How Buffett deals with Speed Traps - The Wall Street Journal, 02 October 2014
He may be an octogenarian but Warren Buffett is still trying to break the speed limit. His firm Berkshire Hathaway announced on Thursday that it is acquiring Van Tuyl Group, America's biggest privately-owned auto dealership for an undisclosed sum. Mr. Buffett says he intends to buy more dealerships over time.

Berkshire's Buffett: Coke compensation plan makes 'great sense'- CNBC - Reuters, 02 October 2014
Warren Buffett, the chairman and chief executive officer of conglomerate Berkshire Hathaway Inc, praised Coca-Cola's altered executive compensation plan on Thursday.

Buffett nabs car dealership as first step into fragmented market - Market Watch, 02 October 2014
Warren Buffett already had the planes and trains. Now he's got automobiles. Buffett's Berkshire Hathaway Inc. BRK.A, +0.17% on Thursday announced an agreement to acquire Van Tuyl Group, the fifth-largest auto dealership firm in the U.S., and Buffett said he plans to use the newly acquired company as a platform to make an even bigger move into the fragmented market for car sales.
 Warren Buffett - The Investor
Warren Buffett made 2 bold predictions last week that may surprise you - The Motley Fool, 19 October 2014
Warren Buffett has been on the media circuit over the past few weeks, appearing on CNBC as well as speaking at Fortune's "Most Powerful Women" summit. Never one to shy away from speaking his mind, the Oracle of Omaha didn't disappoint this week either.

Putting the Berkshire Hathaway Brand before Warren Buffett - The New York Times, 13 October 2014
Surrounded by three beaming cheerleaders, Warren Buffett wears a white Oxford shirt emblazoned with the logo of his conglomerate, Berkshire Hathaway. A $100 bill appears to peek out of his front pocket, but it's actually a replica embroidered onto the fabric.

Warren Buffett, marketing guru? - Yahoo Finance, 13 October 2014
The world's most famous investor apparently wants to become the world's most famous marketer, too. Warren Buffett reportedly plans to license his Berkshire Hathaway (BRK-A) company name to real estate agencies in Europe and Asia.

Warren Buffett hates gambling… unless he's the House – CNN Money, 09 October 2014
Earlier this week, investing sage Warren Buffett made headlines by predicting Hillary Clinton would win the 2016 presidential election. In fact, he added, he's willing to put some coin behind it. "Hillary's going to win," said Buffett, speaking at Fortune's Most Powerful Women Summit. "I will bet money on it. I will. I don't do that easily." But that's not quite accurate.

Buffet Indicator hits second highest level in past 60 years - Yahoo Finance Blogs, 09 October 2014
This morning my friend and master of fundamental analysis Doug Short, updated the "Buffet Indicator." You can find Doug's excellent analysis here.

Why Warren Buffett's values make Berkshire a value - Think Advisor, 08 October 2014
Conglomerates are generally thought to be 1960s-era relics noted especially for value-destroying culture clashes and a lack of managerial focus. Think AT&T and Litton Industries, whose assets were carved up and redeployed long after their glory days passed.

Warren Buffett serenaded long-time friend Carol Loomis last night - Business Insider, 07 October 2014
The "Oracle of Omaha" Warren Buffett serenaded Carol Loomis at Fortune's "Most Powerful Women Summit" on Monday evening. Buffett teamed up with singer-songwriter Paul Anka to create their own version of Frank Sinatra's classic "My Way" as a tribute to Loomis.

Warren Buffett buys an Auto Dealer, defends the Burger King deal, and says Interest Rates are like Gravity - Business Insider, 02 October 2014
Warren Buffett just finished an appearance on CNBC's Squawk Box. Buffett talked about auto dealerships, interest rates, the stock market, and LeBron James. Buffett was also asked about the Burger King-Tim Horton's merger, a "tax inversion" deal that will see Burger King move its headquarters from Miami to Canada. Buffett defended the deal and spoke a bit about the tax code, which he said need an overhaul.

 General News
Warren Buffett's bad housing advice - Fortune, 21 October 2014
Recently, at Fortune's Most Powerful Women Summit, legendary value investor and Berkshire Hathaway CEO Warren Buffett said that if you are looking to place a bet against the dollar, or that interest rates would soon rise, you should just take out a plain vanilla, 30-year fixed mortgage.

Warren Buffett teaches kids how to become successful business owners - Local 10, 20 October 2014
The countdown is on for the next winner of the Grow Your Own Business Challenge for kids. "Once a kid gets that bug, that idea, they become excited," said Norm Goldstein, CEO of Kids for Kids. The challenge is part of Warren Buffett's Secret Millionaires Club program, the purpose of which is to teach kids at an early age the basics of finances and starting your own business.

A look at Berkshire Hathaway's many components - Investopedia, 09 October 2014
Generally speaking, it's easy to summarize what each of the largest corporations in existence do. "Banking," "retail," "car manufacturing," et al. And then there's Berkshire Hathaway Inc. (BRK-A), a company so heterogeneous its activities can be hard to describe succinctly. The Omaha-based behemoth is a throwback to the traditional conglomerates of the 20th century.

Always bet on Berkshire Hathaway (and here's why) - Investopedia, 08 October 2014
The rich get richer, right? That bromide is of course only partially true, otherwise no one would ever squander a fortune. But is it true often enough that we can put it to use?

Charlie Munger and the 2014 Daily Journal Annual Meeting - Part Four - Forbes, 08 October 2014
Q: What are your thoughts about Elon Musk [CEO of Tesla, SpaceX, SolarCity] and what he's doing? Munger: I think Elon Musk is a genius and I don't use that word lightly. I think he's also one of the boldest men that ever came down the pike. Put me down as saying I've always been afraid of the guy whose IQ is 190 and he thinks it's 250.

Warren Buffett says time is right to revamp corporate tax rules - Politico Pro, 07 October 2014
Billionaire investor Warren Buffett said Monday that the White House action to limit companies shifting their tax address outside the United States provides a good "time out" to work on revamping corporate tax rules.

Buffett says 'No-Brainer' to get a Mortgage to Short Rates - Bloomberg, 07 October 2014
Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc. (BRK/A), said he was puzzled by the sluggish rebound in U.S. home construction amid near record-low interest rates and a broader recovery in the economy.

My Tips to Warren Buffett in his new career as a car dealer - Forbes, 07 October 2014
Has Warren Buffett not read that average visits to a dealership before buying a new car is down from five visits in the pre-digital era to about 1.3 visits in 2014? Gone are those days when people would go into dealerships and kick tires before buying cars.

Berkshire's Buffett predicts Hillary Clinton will win presidency in 2016 - Reuters, 07 October 2014
Billionaire investor Warren Buffett on Tuesday predicted Democrat Hillary Clinton would run for the U.S. presidency in 2016 and win.

Why Billionaires can't give their money away quickly enough - Yahoo Finance, 03 October 2014
It's like he can't give it away fast enough. Bill Gates has given $30 billion through his Bill & Melinda Gates Foundation since 2000. But despite all the time and money he devotes to charity, Gates keeps getting richer. His net worth ballooned by $9 billion last year, according to the Forbes' annual ranking of the richest people in the U.S., the Forbes 400.

Buffett's 'All-Equities' Pensions escape Bill Gross drama - Bloomberg, 02 October 2014
Bill Gross's departure from Pacific Investment Management Co. sent ripples through the bond market. Berkshire Hathaway Inc. (BRK/A) pensioners didn't feel it.

Buffett bought a Car Dealership; Now everyone else wants one too - The Wall Street Journal, 02 October 2014
Warren Buffett's Berkshire Hathaway Inc. on Thursday announced a deal to buy Van Tuyl Group, the fifth-largest auto dealership firm in the U.S. Now investors want to buy car dealerships too.

Charlie Munger and the 2014 Daily Journal Annual Meeting - Part Three - Forbes, 01 October 2014
Q: Would Daily Journal consider selling itself to a competitor if the offer was right, or is it going to remain an independent company? Munger: Generally speaking, we like selling to people we like and admire. Not everybody would fit that category. We're trying to run it so that any intelligent person would want to buy it. My attitude in running the Daily Journal, with its technology thing, is that Google would be out of its mind not to buy it. It's going to take years for them to figure that out, though.

Charlie Munger and the 2014 Daily Journal Annual Meeting - Part Two - Forbes, 25 September 2014
Not a transcript, just detailed notes. Wisdom is Munger's; errors are mine. Q: What's one thing that you are excited about in the next year, professionally and personally? Munger: That's spoken like a true groupie. Basically, I lead a very favoured life. I've got wonderful associates.

Charlie Munger and the 2014 Daily Journal Annual Meeting: A Fan's Notes - Forbes, 19 September 2014
As owner of one share of Daily Journal Corporation common stock, I thought I had better pop into the annual meeting since, at $180.70, it represents such a large portion of my net worth. By way of background, you should know that Charles T.


How to invest in Emotional Intelligence - or not?

Not long ago, the CEO of a sales company mentioned that he was spending millions of dollars to train his employees in emotional intelligence. He asked if it was possible to assess emotional intelligence during the interview process, which would allow him to hire salespeople who already excelled in this area.
I said yes, it can be done—but I wouldn’t recommend doing it.
Warning: if you’re a devoted member of an emotional intelligence cult, you may have a strong negative reaction to the data in this post. In case that happens, I’ve offered some guidance at the bottom on how to respond.
To make sure we’re on the same page, let’s be clear about what emotional intelligence is. Experts agree that it has three major elements: perceiving, understanding, and regulating emotions. Perceiving emotions is your ability to recognize different feelings. When looking at someone’s face, do you know the difference between joy and contentment, anxiety and sadness, or surprise and contempt? Understanding emotions is how well you identify the causes and consequences of different feelings. For example, can you figure out what will make your colleagues frustrated versus angry? Frustration occurs when people are blocked from achieving a goal; anger is a response to being mistreated or wronged. Regulating emotions is your effectiveness in managing what you and others feel. If you have a bad day but need to give an inspiring speech, can you psych yourself up and motivate your audience anyway?
I told the CEO that although these skills could be useful in sales, he’d be better off assessing cognitive ability. That’s traditional intelligence: the capability to reason and solve verbal, logical, and mathematical problems. Salespeople with high cognitive ability would be able to analyze information about customer needs and think on their feet to keep customers coming back. The CEO was convinced that emotional intelligence would matter more.
To see who was right, we designed a study. Working with Dane Barnes of Optimize Hire, we gave hundreds of salespeople two validated tests of emotional intelligence that measured their abilities to perceive, understand, and regulate emotions. We also gave them a five-minute test of their cognitive ability, where they had to solve a few logic problems. Then, we tracked their sales revenue over several months.
Cognitive ability was more than five times more powerful than emotional intelligence. The average employee with high cognitive ability generated annual revenue of over $195,000, compared with $159,000 for those with moderate cognitive ability and $109,000 for those with low cognitive ability. Emotional intelligence added nothing after measuring cognitive ability.
The CEO wasn’t convinced: maybe they didn’t take the emotional intelligence test seriously enough. We ran the study again—this time with hundreds of job applicants, who knew that their results could affect whether they were hired. Once again, cognitive ability dramatically outperformed emotional intelligence.
I happen to find emotional intelligence fascinating; I teach the topic in the classroom and have published my own research on it. As much as I like it, though, I believe it’s a mistake to base hiring or promotion decisions on it.
A few years ago, researchers Dana Joseph and Dan Newman wanted to find out how much emotional intelligence really influenced job performance. They compiled every systematic study that has ever tested emotional intelligence and cognitive ability in the workplace—dozens of studies with thousands of employees in 191 different jobs.
When Daniel Goleman popularized emotional intelligence in 1995, he argued provocatively that "it can matter more than IQ." But just as I found with salespeople, every study comparing the two has shown the opposite. In Joseph and Newman’scomprehensive analysis, cognitive ability accounted for more than 14% of job performance. Emotional intelligence accounted for less than 1%.
This isn’t to say that emotional intelligence is useless. It's relevant to performance in jobs where you have to deal with emotions every day, like sales, real estate, and counseling. If you’re selling a house or helping people cope with tragedies, it’s very useful to know what they’re feeling and respond appropriately. But in jobs that lack these emotional demands—like engineering, accounting, or science—emotional intelligence predicted lower performance. If your work is primarily about dealing with data, things, and ideas rather than people and feelings, it’s not necessarily advantageous to be skilled in reading and regulating emotions. If your job is to fix a car or balance numbers in a spreadsheet, paying attention to emotions might distract you from working efficiently and effectively.
Still, even in emotionally demanding work, when it comes to job performance, cognitive ability still proves more consequential than emotional intelligence. Cognitive ability is the capacity to learn. The higher your cognitive ability, the easier it is for you to develop emotional intelligence when you need it. (This is one of the reasons that emotional intelligence and cognitive ability turn out to correlate positively, not negatively.)
As better tests of emotional intelligence are designed, our knowledge may change. But for now, the best available evidence suggests that emotional intelligence is not a panacea. Let’s recognize it for what it is: a set of skills that can be beneficial in situations where emotional information is rich or vital.
If you felt intense negative emotions while reading this post, it’s an excellent opportunity to put emotional intelligence into action.
Step 1: recognize the emotion. Is it disgust? Probably not—that’s usually reserved for gross foods, sights, and smells. Is it hostility? More likely: hostility is anger directed toward other people.
Step 2: analyze the causes of the emotion. Why are you feeling hostile? Years ago, the psychologist George Kelly argued that hostility occurs when we are attempting to “extort confirmation of personal hypotheses that have already proved themselves to be invalid.” In other words, you might be feeling hostile because the data are clear that emotional intelligence has been overrated, but you don’t want to admit it.
Step 3: regulate the emotion. Maybe this isn’t as terrible as it seems. You’ve been able to update invalidated beliefs before. Napoleon wasn’t short. Pluto isn’t technically a planet. Swimming after eating isn’t dangerous. Miley Cyrus isn’t actually a great role model. The LOST writers didn’t really have a master plan.
If you like this article, then follow Willem Tait on Twitter at www.twitter.com/WillemTait 

Saturday

We found 33 Warren Buffett related articles for you to read #WarrenBuffett


The 10 most dominant Warren Buffett stocks - 24/7 Wall Street, 20 August 2014
Berkshire Hathaway Inc. recently released its latest changes to the company's public equity holdings, as of June 30, 2014. What stood out the most was just how large some of the stakes have gotten compared to the total Buffett portfolio.

Berkshire Hathaway buys Charter Communications, IBM, Verizon, sells ConocoPhillips - GuruFocus, 15 August 2014
As Berkshire Hathaway stock trades past $200,000 a share, it reported its second quarter portfolio. Warren Buffett (Trades, Portfolio) and his CIOs buys Charter Communications Inc, IBM, Verizon Communications Inc, Suncor Energy Inc, USG Corp, Liberty Global PLC, sells Graham Holdings Co, DirecTV, ConocoPhillips, Phillips 66, Liberty Media Corporation, National Oilwell Varco Inc, Starz during the 3-months ended 06/30/2014, according to the most recent filings of his investment company, Berkshire Hathaway.

Warren Buffett buys more GM stock - CNN Money, 15 August 2014
Investing legend Warren Buffett's faith in General Motors has not been shaken. Buffett's holding company Berkshire Hathaway (BRKA) bought nearly 3 million shares of GM (GM) during the second quarter, according to a regulatory filing with the Securities and Exchange Commission.

Major Portfolio changes for Warren Buffett and Berkshire Hathaway - 24/7 Wall St, 14 August 2014
Berkshire Hathaway Inc. released its public equity holdings as of June 30, 2014. Warren Buffett's different portfolio holdings have not been changing much of late, but it turns out that many of the stakes were changed – some changes were substantial.

Warren Buffett's Berkshire increases stake in Verisign - GuruFocus, 04 August 2014
Warren Buffett (Trades, Portfolio)'s company Berkshire Hathaway (BRK.A) (BRK.B) has increased his holding of Verisign (VRSN), according to GuruFocus Real Time Picks.

Warren Buffett's billion-dollar gift that keeps on giving - The Motley Fool, 26 July 2014
Warren Buffett has a business that has made him billions throughout the years, but the surprising secret to its success is simple. Berkshire Hathaway fully acquired Geico in 1996, but Buffett's history with the insurer dates long before that.

Canada approves Berkshire buy of SNC-Lavalin's AltaLink - Bloomberg, 26 July 2014
Berkshire Hathaway Inc. (BRK/A)'s energy unit won Canadian approval for its planned purchase of SNC-Lavalin Group Inc.'s AltaLink electric transmission business after committing to reinvesting in the country.

Warren Buffett's retail conundrum proves profitable in 2014 - Seeking Alpha, 24 July 2014
Pure retail companies have never been sweet spots for the famed investor Warren Buffett and make up a very small part of Berkshire Hathaway's portfolio.
 Warren Buffett - The Investor
What will become of Berkshire Hathaway beyond Buffett? - Investopedia, 21 August 2014
For a rumpled octogenarian who lives relatively modestly, offering few ostentatious displays of his incomprehensible wealth, Warren Buffett sure gets more than his share of media exposure.

The Warren Buffett guide to making money - Yahoo Finance, 19 August 2014
I once went to a Berkshire Hathaway annual meeting. I met a guy who told me how in 1976 he bought 200 shares. "After a year the stock had doubled so I decided to take some profits off the table. I sold 100 shares and started a restaurant and ran that for the next 30 years," he said. "Made a decent living."

Even Warren Buffett gets killed in the Stock Market - Yahoo Finance, 15 August 2014
Yesterday Warren Buffett's Berkshire Hathaway stock price broke $200,000. Buffett's performance over the years is an amazing feat. Since 1980, when the price was in the $200-300 range, the stock has compounded at an annual rate of 21% per year. That's good enough to double your money every three-and-a-half years.

Why Warren Buffett never split Berkshire's Stock - MoneyBeat, 14 August 2014
One share of Berkshire Hathaway's Class A stock is so expensive that it could pay for an entire college education. Or two houses in Omaha, Neb. Or roughly 40,000 large Blizzards at Berkshire-owned Dairy Queen. So why on earth hasn't Warren Buffett split his company's stock?

2 Things about Warren Buffett every Investor should know right now - StockTwits, 13 August 2014
Warren Buffett and his company Berkshire Hathaway are, arguably, having their most success ever. To see why, just take a quick look at the 2 facts compiled below:

Is Warren Buffett signalling lower rates of return for stocks? - Forbes, 11 August 2014
Berkshire Hathaway reported its June quarter results and the balance sheet showed that it's Insurance and other cash balance had grown from $42.4 billion in December 2013 and $42.2 billion in March to $49.2 billion in June.

4 lessons from Warren Buffett's biggest quarter ever - Yahoo Finance, 04 August 2014
Berkshire Hathaway (BRK-A) reported its biggest quarterly earnings haul ever after the bell on Friday. Warren Buffett's masterpiece of capitalism reported profits up 41% to $6.4 billion. If Berkshire's annual letters are 50 Shades of Financial Grey for the masses the 10Qs are like a peek in the Marquis de Sade's private diary.

Warren Buffett's biggest mistake changed his life - The Motley Fool, 27 July 2014
Warren Buffett and Charlie Munger have piloted Berkshire Hathaway to a market-crushing performance over the years. As veteran Berkshire watchers know very well, there's no big secret to this dynamic duo's success.

This man will not destroy Warren Buffett's Empire Berkshire Hathaway Inc. - The Motley Fool, 23 July 2014
Replacing Warren Buffett atop Berkshire Hathaway will be no easy task once the 83-year old billionaire is out of the picture. While debate rages on over who should replace the Oracle of Omaha as CEO, Buffett has made it clear that he'd like to see his son, Howard, step as a non-executive chairman of the board. Will this mark the beginning of the end of Berkshire Hathaway's greatness?

5 Philanthropic efforts of Warren Buffett and his fellow Titans - Benzinga, 22 July 2014
Billionaire Warren Buffett's latest gift of Berkshire Hathaway (NYSE: BRK-A) stock worth more than $2.8 billion to several charities represents merely the tip of a "titan charitable iceberg."

The 1 thing you need to make money in the Stock Market like Warren Buffett - The Motley Fool, 22 July 2014
As usual, this year's Berkshire Hathaway annual meeting offered a treasure trove of investing knowledge. There were so many investors absorbing teachings from Warren Buffett and Charlie Munger and exchanging ideas that I'm quite sure even passing motorists outside Omaha's CenturyLink Centre felt a little smarter.

Crony Capitalism and the Oracle of Omaha - Yahoo Finance, 21 July 2014
I am back from the Berkshire Hathaway annual meeting in Omaha, Nebraska, and my brain is still spinning from the dozens of meetings and stimulating conversations. In a series of articles over the next few weeks, I'll try to download the thoughts that were triggered by this trip, a lot of them unrelated to the main event — the Warren Buffett & Charlie Munger show — but rather by-products of the conversations I had.
 General News
A look at Berkshire Hathaway's many Components - Investopedia, 21 August 2014
Generally speaking, it's easy to summarize what each of the largest corporations in existence do. "Banking," "retail," "car manufacturing," et al. And then there's Berkshire Hathaway Inc. (BRK-A), a company so heterogeneous its activities can be hard to describe succinctly.

Warren Buffett's Berkshire Hathaway to pay $896,000 civil penalty on Antitrust Issue - The Wall Street Journal, 20 August 2014
Warren Buffett's crisis-era investments made him a fortune, but one resulted in a small black eye for the billionaire investor as well.

Fund manager sells Berkshire shares due to Buffett's inaction on Coca-Cola - Reuters, 15 August 2014
Fund manager David Winters has sold his shares in Berkshire Hathaway Inc, citing Chairman Warren Buffett's inaction on Coca-Cola Co's equity plan.

Berkshire Hathaway is breaking out...bad news for stocks? - Yahoo Finance, 14 August 2014
Sounds crazy, I know — that a stock breaking out might be sending a bearish signal for the stock market. It probably sounds particularly heretical on a day that Berkshire Hathaway A shares cross above $200,000 for the first time.

Warren Buffett's Berkshire Hathaway has the most cash in America - The Street, 04 August 2014
As of the middle of this year, Berkshire Hathaway (BRK.A_) had the most cash located in the U.S. of any corporation based in this country, surpassing both Apple (AAPL_) and Verizon (VZ_). The data, while it comes with a few caveats, makes clear that Berkshire's Warren Buffett may be in the strongest position of any U.S. chief executive to make another big bet, presumably on the U.S. economy.

Highly paid CEOs like Warren Buffett may be worth every million - The Street, 03 August 2014
The question of whether a CEO is worth the price a company pays often boils down to measurable factors, like stock price. But that salary might also be worth it for other, less tangible reasons.

Berkshire Hathaway profit rides Bull Market, but Book Value Premium now 33% - 24/7 Wall St., 02 August 2014
Berkshire Hathaway Inc. has released its second-quarter earnings report. Recall, though, that Warren Buffett and his team never really worry about quarterly reports, and they warn investors that their earnings in any given period could be made to look much better or much worse because of how many operational gains and losses could be moved around.

Berkshire profit jumps 41% to record on Buffett's bets - Bloomberg, 01 August 2014
Warren Buffett's Berkshire Hathaway Inc. (BRK/A) said second-quarter profit rose 41 percent to a record on investments, including a gain tied to the exit of most of his stake in the former publisher of the Washington Post.

Why Warren Buffett wouldn't touch J.C. Penney Stock - The Motley Fool, 27 July 2014
There's a very good reason why J.C. Penney and other "turnaround" stocks have not found their way into Berkshire Hathaway's portfolio. After a few disappointing experiences with struggling businesses early in his career, Berkshire Hathaway CEO Warren Buffett realized that investing in turnarounds was just a waste of energy.


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Thursday

4 Ways to Value Real Estate

When I'm considering real estate VALUE, whether it's a real estate stock or a property, there are two value rules:


  • Don't pay too much for the earth.
  • Don't pay too much for the business.

Don't pay too much for the earth is simple

For a real estate STOCK, I don't pay more than a 10% premium to the market value of the properties. And when it comes to buying a HOUSE, you'd better think long and hard before you'd consider paying a 10% premium to comparable values in the neighborhood. Some of the best real estate investment advice out there-and often the hardest to come by-is to buy property at a 20% discount. If you're not too picky, it's actually not hard to do (if you're willing to do a little sprucing up after buying).
The second value rule regarding real estate investment advice is also simple: 

Don't pay too much for the "business." 


Just like a stock, look at the P/E ratio... a.k.a. the rent. While real estate prices can fluctuate in the short run, in the long run, property prices are significantly driven by rental values. If you look at the "Price-to-earnings" ratio of your property, you can learn about your home's true "intrinsic" value.
As a good real estate investment rule of thumb, net rents in real estate (by "net," I mean after expenses) have averaged about 1% above Treasury bonds (that's the way it's been with real estate stocks since 1990). The Treasury bond is at 5.15% as I write, so we might guess that the nationwide average net rent is 6.15%. (6.15% is the "earnings-to-price" ratio, so we need to find the inverse of it for the P/E of your house.)
How can you figure the P/E for your property? Forbes suggests the only real way to know: "To get rental data for homes comparable to the one you're buying or selling, check with the relocation department of big real estate agencies." You've got to know what the comparable net rents are to your property.
This is all a very rough guide. Once you've figured your P/E, it may be very different from the current nationwide fair value P/E guess of 16. If your P/E is low, you may have gotten a good deal, or you could collect high rents from your place. If your P/E is twice as high as 16, my advice is that you ought to consider selling
The tricky thing about selling real estate is that real estate is not liquid. Unlike stocks, where we have the luxury of being able to sell whenever we want and the luxury of trailing stops to get us out exactly when we want out, in real estate, it's not so easy. You unfortunately need to be a good guesser, because you actually need to sell into an "up" market, and buy in a down market.
*Note: While this can't be done successfully on a regular basis, you can improve your chances considerably by doing what works in the stock market as well. The P/E ratio is our value indicator in our 1-2-3 Model in the stock market - and I found that you NEVER make money in stocks over the long run when the P/E of the market is above 17. While I don't have the data on homes, the number may be very similar.


How To Invest Wisely in Real Estate
There are smart reasons to invest in real estate, and then there are dumb reasons. The truth is, for example, that we can't know for sure whether what's happening in real estate right now is the bottom of the market or not. Just like further down the road, after the dust has settled and people have long moved on past this financial crisis and its many causes and consequences, a new real estate bubble could very well form.
But if you're investing for the "right" reasons - and you know your risks - chances are your investment will be a good one.
1. Speculating versus Investing
Buying a chunk of land and hoping it goes up in value is SPECULATING. Buying a property to collect high income in the form of rent is INVESTING.  Investing is a much safer (and smarter) way to go.
2. "Property Will Always Go up in Value"
Don't believe this dangerous myth! Japanese real estate at the close of the century and American real estate today indicate that buying because "it has to go up" is one of the worst reasons to do so. Hoping for - or worse, expecting - a price rise is speculation. Make sure the investment makes great sense from a positive-cash-flow perspective first. Then if the property falls in value, you're still "right side up" on your cash flows. Consider any appreciation to be simply icing on the cake when it comes to speculative real estate investing.
3. Getting Started in Real Estate Investing with Residential Property
It's easier to understand, purchase and manage than other types of property. If you're a homeowner, you've already got experience here. And you're the boss. Start close to home, so you can stay on top of things.
4. Truthful Real Estate Investment Advice: Don't Believe Everything You Hear or Read
Sellers and real estate agents ultimately want you to buy that property. So what they're telling you is most likely the rosy scenario, not the actual scenario. If the property has been a rental, ask the seller for his Schedule E form from his taxes. It'll show his ACTUAL revenue and expenses, or at least the ones he reported to the government. What you can expect to earn is somewhere between what he reported to the IRS and what he's promising you.

Where To Buy
According to ResInvest: "There is - as you probably know - a widely held belief that the three most important factors involved in real estate success are "Location, Location, Location." But sometimes there's MORE profit in less desirable locations. Looks for what we call a "double-digit cap rate." As an example, if you net 1,000 a month in rent on a 100,000 investment, that's 12,000 a year, or 12% of 100,000. That's a double-digit return that year or a double-digit cap rate. The catch is that this is NET rent or rent AFTER expenses. Some people in the business suggest that 5-10% is more likely, even after doing your homework."
Conclusion: there are no get-rich quick schemes here, and THAT is plain, simple real estate investment advice you're not likely to get from the real estate industry.
*Welcome to to follow Willem on twitter at www.twitter.com/WillemTaitRSA for more tips.
First published in investmentu.com