Berkshire Rallies on Share Buyback Announcement

Last month, Berkshire Hathaway’s board announced that its removing a cap on stock buybacks, giving chairman Warren Buffett the freedom to dole out profits rather than continue his hunt for acquisitions. This according to an article in Bloomberg. The article reported that Buffett and Vice Chairman Charlie Munger can “now make repurchases whenever they both believe the price is below Berkshire’s intrinsic value, conservatively determined.’ ” The announcement led to a 3.9% rise in shares,… Read More

The Future of Berkshire Without Buffett

Barron’s recently invited readers to submit letters they might write to Warren Buffett. One, which they published in June (by writer Andrew Bary), suggested that Berkshire shareholders might derive some comfort from knowing a bit more about Berkshire’s succession plan. “After 53 years at the helm,” wrote Bary, “isn’t it time to share the limelight with your likely successor and with Berkshire’s many managers? Investors would get to know them better and gain confidence that… Read More

Berkshire Hathaway Annual Meeting Highlights

The Berkshire Hathaway annual meeting took place this past weekend in Omaha, Nebraska. Here are some of the biggest takeaways (according to articles from The Wall Street Journal, CNBC,  Yahoo Finance and The Motley Fool): Berkshire’s “investment edge” transcends Buffett and Munger: Buffett believes that the reputation of Berkshire Hathaway stands on its own and will endure after he and partner Charlie Munger retire. He noted that Ted Wechsler and Todd Combs, portfolio managers who reportedly… Read More

Hidden Secrets in Warren’s Buffett’s Annual Letter to Shareholders

By Justin J. Carbonneau (@jjcarbonneau) —  Ok, just to be clear there are no real hidden secrets in Warren Buffett’s Annual Berkshire Hathaway shareholder letter (download the full letter here). You won’t find a map, like the in the movie “The Goonies”, leading you to Berkshire’s $116 billion cash hoard aboard some pirate ship. You won’t even find any hint on who Buffett is going to pick as a successor. Sorry to disappoint you. But… Read More

Buffett Bets on Trucking

Last week, Berkshire Hathaway announced an agreement to purchase a 38.6% stake in Pilot Travel Centers LLC for an undisclosed amount, according to a Wall Street Journal article that calls it “Berkshire’s latest wager on traditional forms of transportation and U.S. economic growth.” According to the article, the Tennessee-based company, better known as Pilot Flying J., is the largest operator of truck stops in the U.S. as well as one of the country’s largest private… Read More

Would You Fire this Guy?

By John Reese — If there’s one thing that’s hard to persuade investors to be, it’s patient. The urge to chase the hot idea or the manager with the dazzling recent track record is incredibly powerful. The resolve to resist crowd mentality can falter when it seems as if everyone else is winning and you’ve been left behind. Imagine hiring a manager in 1997 and for the three year period to 2000, he clocks a… Read More

Finding Your Edge a Key to Investing Success

By John P. Reese The mathematician Ed Thorp figured out how to beat Las Vegas casinos at blackjack and baccarat and they didn’t like it. But the MIT and University of California Irvine professor didn’t get discouraged. He applied those same mathematical principles to the markets, and also won. Mr. Thorp knows that good ideas have limited runs. As more investors pile into a winning trade, the returns start to diminish and the idea can… Read More

Buffett and Berkshire Focusing More on Running Businesses than Stock-Picking

In his February letter to shareholders, Warren Buffett wrote that Berkshire Hathaway is seeing a “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” This according to a Wall Street Journal article from earlier this month. The trend is being underscored by the company’s recent bid to purchase the bankrupt power-transmission company Energy Future Holdings Corp. (including utility company Oncor) for $9… Read More

Buffett’s Airline Bet and Four Picks

In anticipation of its Prime Day this month, Amazon prepared for an onslaught of orders by “getting its delivery ducks in a row, including a fleet of over 20 dedicated Prime Air Cargo planes,” writes Validea CEO John Reese in a recent article for Nasdaq. Reese segued into Warren Buffett’s bet on major airlines and his general investment approach. Using stock screening models he created based on the methodology of Buffett and other market greats,… Read More

Berkshire’s Oncor Deal Feeds Buffett’s Energy Appetites

Berkshire Hathaway arrived at a deal to purchase one of the country’s largest power-transmission companies, making electricity one of the conglomerate’s biggest businesses. This according to a recent article in The Wall Street Journal. The bankrupt Energy Futures Holding Corp. will be acquired by Berkshire Hathaway in a deal valued at $18 billion ($9 billion of which will be cash), the article says, and will include the Texas-based company Oncor. The acquisition will further enhance… Read More