Warren Buffett: “Berkshire Could Be A Rest Home For Activists”

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Here’s a great interview with Warren Buffett at Fortune’s Most Powerful Women Conference in which he discusses why he’s not a fan of activists, and the importance of having good communication with your shareholders in the case of an activist surfacing. Here’s an excerpt from the interview: Buffett: Activism is a saleable form and therefore it gets sold. Wall street … Read More

Charlie Munger: Moral Investing – We Could See It Was Like Putting $100 Million In A Bushel Basket And Setting It On Fire As We Walked Away

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Here’s a great video with Charles Munger and Warren Buffett at the 2005 Berkshire Hathaway shareholder meeting in which they discuss the moral distinction between buying a stock and a company. Here’s an excerpt from the video: CHARLIE MUNGER: Yeah. I think he’s asking in part, are there some businesses we won’t have as subsidiaries in Berkshire even though they’re … Read More

Warren Buffett Predicted The Fall Of Eddie Lampert And Sears Over 10 Years Ago

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Here’s an article at Yahoo Finance discussing the bankruptcy of Sears and the prediction by Warren Buffett 10 years ago regarding the fall of Eddie Lampert and Sears. Here’s an excerpt from that article: The end for Eddie Lampert, the hedge fund manager in charge of Sears Holding Group, appears near. And Warren Buffett’s decade-old prediction is finally coming true. … Read More

WSJ: How Did Warren Buffett Respond To Lehman and AIG When They Asked For Help In 2008

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Here’s a great video from the WSJ in which Warren Buffett discusses the 2008 financial crisis, how he was approached by both Lehman Brothers and AIG when they asked for help, and why he turned them down. Buffett recalls being contacted by AIG saying: On Friday, preceding the weekend, I got a call from AIG. AIG was going to run out … Read More

Warren Buffett: 35 Books That Every Investor Should Read

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We recently started a series called – Superinvestors: Books That Every Investor Should Read. So far we’ve provided book recommendations from: Charles Munger: 32 Books That Every Investor Should Read Seth Klarman: 32 Books That Every Investor Should Read Together with our own recommended reading list of: 50 Of The Best Investing Books Of All Time This week we’re going … Read More

Warren Buffett: In The World Of Mergers And Acquisitions, A Limping Horse Could Be Peddled As Secretariat

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While all of the Berkshire Hathaway shareholder letters are a must read for investors, the 1995 letter is notable for two reasons. The first is Buffett’s explanation of Berkshire’s ‘Woody Allen’ approach to investing. The second is Buffett’s commentary on acquisitions saying: “In any case, why potential buyers even look at projections prepared by sellers baffles me. Charlie and I … Read More

Warren Buffett (Age 21): The Security I Like Best (1951)

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Here’s a great article written by the 21-year-old Warren Buffett for The Commercial and Financial Chronicle dated Thursday, December 6, 1951. The article is a great illustration of how a young Buffett analysed GEICO for potential investment saying: “At the present price of about eight times the earnings of 1950, a poor year for the industry, it appears that no … Read More

Warren Buffett: How to Minimize Investment Returns

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In their Berkshire Hathaway 2005 shareholder letter Warren Buffett provided a great illustration of how shareholders continually sabotage their investment returns saying: “Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can … Read More

Warren Buffett: “The Worst Deal That I’ve Made”

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We’ve just been listening to a great podcast at NPR with Michael Batnick discussing his new book – Big Mistakes: The Best Investors and Their Worst Investments. During the conversation Batnick tells the story of Warren Buffett’s greatest mistake, the purchase of Dexter Shoes. Here’s how he describes it: “So what he did was he bought a company called Dexter Shoes. And … Read More

Warren Buffett: “Anytime That The Market Takes A Sharp Dive And You Get Tempted To Sell Or Something, Just Pull Out This Book And Reread It!

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Here’s a nostalgic video with Bill Gates and Warren Buffett. At 2:13 Buffett says: “This is a book that first came out in 1949, The Intelligent Investor by Ben Graham. When I read this book it changed my life. Anytime that the market takes a sharp dive and you get tempted to sell or something, just pull out this book and reread it!”

Warren Buffett’s Three Best Investing Tips — Including ‘Margin of Safety’ — Explained

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Here’s a great article at CNBC discussing Warren Buffett’s three best investing tips, including margin of safety: Warren Buffett believes investors should buy stocks within their “circle of competence” and at attractive values to succeed in the stock market. Buffett’s track record is unparalleled. From 1965 to 2017, Berkshire Hathaway’s rising market value generated a 20.9 percent annual return compared … Read More

Warren Buffett: The Prototype Of A Dream Business

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Warren Buffett has often spoken about the importance of a business moat. In a presentation to the MBA students at the University of Florida Buffett said: “I want a business with a moat around it. I want a very valuable castle in the middle… and then I want the Duke who’s in charge of that castle to be honest and hardworking … Read More

Outperformance Means Living Through Periods of Underperformance

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In Berkshire Hathaway’s latest annual shareholder letter Warren Buffett provides a great illustration of how price randomness in the short term can obscure longterm growth in value. His following real-life example demonstrates that in order to achieve longterm outperformance investors must suffer through periods of significant underperformance. Here’s an excerpt from that letter: Charlie and I view the marketable common … Read More

Warren Buffett: Investing Lessons Learnt From ‘That’ Bet

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In 2007 Warren Buffett entered into a 10 year bet with Protégé Partners that the S&P 500 would outperform a selection of hedge funds over the following ten years. Last year he won that bet which resulted in the Girls Inc. of Omaha receiving $2,222,279 from his initial outlay of $318,250. In his latest annual letter to shareholders Buffett highlighted the lessons … Read More

Warren Buffett: How To Use Phil Fisher’s Scuttlebutt Method Today

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Last year Warren Buffett did a great interview with Becky Quick at CNBC in which he discussed how he uses Phil Fisher’s ‘Scuttlebutt Method’ for finding investments. Phil Fisher wrote a investing classic called, Common Stocks and Uncommon Profits. Scuttlebutt means rumors or gossip about a particular product or company from a collection of sources. Here’s an excerpt from that interview: … Read More

Warren Buffett – “EMT Has Been An Extraordinary Service To Us And Other Followers Of Graham”

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Here’s a great passage from Warren Buffet’s 1988 Berkshire Hathaway Shareholder Letter in which he discusses issues surrounding the Efficient Marker Theory (EMT) and how it has been a godsend to Grahamites. In terms of the ‘contest’ between EMT believers and the value investing community Buffett says: “In any sort of a contest – financial, mental, or physical – it’s … Read More

Warren Buffett – “It’s Not What You Look At That Matters; It’s What You See.”

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Warren Buffett provides a great lesson for all investors in the book – The Warren Buffet Way, by Robert Hagstrom. The lesson is that investors can spend weeks and years reading and analyzing information on prospective companies, but according to Buffett, “It’s not what you look at that matters; it’s what you see.” The lesson learnt by Buffett happened during … Read More

Charlie Munger – How To Dramatically Improve Your Financial Results

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Here’s a great passage from the book – Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger, in which Munger illustrates how your financial results can be dramatically improved by being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical things. Here’s an excerpt from the book: Munger and Buffett … Read More

Warren Buffett: Why Stocks Beat Gold, Bonds… and Bitcoin

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It’s quite incredible to watch the latest euphoria surrounding cryptocurrencies and Bitcoin. Whether or not we’re witnessing a bubble, only time will tell. But at the time of writing there are 1395 cyrptocurrencies with a combined market cap of approximately $730 Billion. Of which Bitcoin has a market cap of $242 Billion and Ethereum, a market cap of $126 Billion. As … Read More

Buffett & Munger – The ‘Eureka Moment’ For Two Of The World’s Greatest Investors

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It seems that all of the great investors have a ‘eureka moment’ during their investing careers. A ‘eureka moment’ refers to the common human experience of suddenly understanding a previously incomprehensible problem or concept. Sometimes referred to as an ‘Aha’ moment. And so it was two of the world’s greatest investors, Charles Munger and Warren Buffett. Their eureka moment is … Read More