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 … 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!
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 … Read More
Warren Buffett’s Three Best Investing Tips — Including ‘Margin of Safety’ — Explained
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 … Read More
Warren Buffett: The Prototype Of A Dream Business
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 … Read More
Outperformance Means Living Through Periods of Underperformance
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 … Read More
Warren Buffett: Investing Lessons Learnt From ‘That’ Bet
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 … Read More
Warren Buffett: How To Use Phil Fisher’s Scuttlebutt Method Today
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 … Read More
Warren Buffett – “EMT Has Been An Extraordinary Service To Us And Other Followers Of Graham”
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 … Read More
Warren Buffett – “It’s Not What You Look At That Matters; It’s What You See.”
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 … Read More
Warren Buffett: Why Stocks Beat Gold, Bonds… and Bitcoin
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 … Read More
Buffett & Munger – The ‘Eureka Moment’ For Two Of The World’s Greatest Investors
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 … Read More
Warren Buffett – The Only Score That Counts In Investing Is Your Internal Scorecard
One of our favorite investing books here at The Acquirer’s Multiple is – The Snowball: Warren Buffett and the Business of Life, by Alice Schroeder. Schroeder recounts a time in the late ninety’s when Buffett was being humiliated by some of the leading financial commentators of the time and Berkshire’s … Read More
Superinvestors Agree That Business Schools Don’t Make You A Better Investor
While a lot of investors believe that a good finance course at one of the world’s most prestigious business schools is a sure-fire way to becoming a better investor, it seems that some of the greatest investors disagree. Here’s what Buffett, Munger, Greenblatt, Pabrai, and Lynch have to say about … Read More
Buffett on Lou Simpson And His Successful Investing Strategy
One of our favorite investors here at The Acquirer’s Multiple is Lou Simpson. Simpson, the Vice Chairman of GEICO, was mentioned in Buffett’s 1986 Berkshire Hathaway Shareholder Letter in which he said: “The second stage of the GEICO rocket is fueled by Lou Simpson, Vice Chairman, who has run the company’s investments … Read More
Warren Buffett – Mistakes of the First Twenty-Five Years
One of the best resources available to investors are the Berkshire Hathaway shareholder letters. One of my personal favorites is the 1989 letter in which Warren Buffett wrote a piece called – Mistakes of the First Twenty-five Years (A Condensed Version). It’s a great insight into how even the greatest investors … Read More
Warren Buffett’s Hero Philip Carret Says There’s Only One Rule For Selling Winning Stocks
One of our favorite investors here at The Acquirer’s Multiple is value investing legend Philip Carret who Warren Buffett once described as one of his heroes. Carret has written three books – The Art of Speculation, A Money Mind at Ninety, and Classic Carret: Common sense from an uncommon man. After founding … Read More
Is It Better To Buy The Stock And Watch The Price Drop Or Not Act And Watch The Price Soar? – Daniel Kahneman
One of the most common predicaments facing investors is that they’ve analysed a stock, it meets with the investors criteria, and now it’s time to pull the trigger and buy the stock. But something happens, the investor ums and ahs and delays the decision to buy. Next thing you know three … Read More
Great Investors Focus On Absolute-Performance Rather Than Relative-Performance – Seth Klarman
Earlier this month The Washington Post published an article titled – Warren Buffett’s $100 Billion Problem. The article was reporting on the $100 Billion that Berkshire has accumulated in cash over the years, stating: Warren Buffett celebrated his 87th birthday a few days ago, but the bigger number in his life … Read More
Great Investors Create Their Own Version Of Omaha – Buffett, Munger, Klarman, Pabrai
One of the biggest problems facing investors is the amount of ‘noise’ that we get from the financial media and commentators. Financial news sections, the internet, and podcasts are continually bombarding us with the latest ‘hot stock’ or miracle investing strategy. Meanwhile investors get caught up in the noise checking … Read More
The Definitive Guide On Identifying Companies With An Economic Moat – Warren Buffett
With so much talk about a company’s economic moat it’s important to recognize how to clearly identify a moat, understand how wide it is, and figure out how long it will remain in place. One of the best papers ever written on the subject is Michael Mauboussin’s – Measuring the … Read More