In his 1997 Berkshire Hathaway Annual Letter, Warren Buffett reports an $8 billion increase in Berkshire Hathaway’s net worth, reflecting a 34.1% rise in per-share book value. While acknowledging strong performance, Buffett tempers enthusiasm, noting the broader market’s exceptional gains in 1997. He humorously warns against overconfidence, likening it to … Read More
Warren Buffett: Why Market Drops Are Good for Investors
In his 1997 Berskshire Hathaway Chairman’s Letter, Warren Buffett highlights the advantages of stock repurchase programs, particularly when prices are low, as they increase ownership stakes more effectively. He notes that Berkshire Hathaway benefits significantly from long-term shareholders, with 97% retaining their shares year-over-year. Market declines, contrary to popular belief, … Read More
Warren Buffett: Stop Listening To Your Neighbor’s Stock-Tips
In this interview with Fortune Magazine, Warren Buffett advises against speculative investing and emphasizes the importance of understanding the assets you buy. He suggests evaluating investments like a farm, apartment, or company based on their productive potential and expected returns. For a farm, calculate expected crop yields and their value; … Read More
Warren Buffett’s Mindset – Would You Hold This Stock if the Market Closed for 5 Years?
During the 1997 Berkshire Hathaway Annual Meeting, Warren Buffett explained why he focuses more on the intrinsic value of businesses rather than market trends or capital flows. He dismisses the significance of who is buying or selling securities or macroeconomic indicators, such as market signals or Federal Reserve actions, as … Read More
François Rochon’s Formula for Finding Great Businesses
During this interview with MOI, François Rochon explains how he identifies great businesses through a combination of quantitative and qualitative analysis. He begins by reviewing past performance metrics such as return on capital, margins, debt levels, and profit quality to find strong companies. However, he acknowledges that past performance alone … Read More
Cyclical Compounders and Market Opportunities
During their recent episode, Taylor, Carlisle, and Gwen Hofmeyr discussed Cyclical Compounders and Market Opportunities. Here’s an excerpt from the episode: Gwen: So, I really love cyclical compounders, just because in the course of business, you’re just going to have these periods where there’s some broad uncertainty related that’s impacting … Read More