Swedroe: Keep Believing in Warren Buffett Despite Berkshire’s Underperformance

The stock market may be “crushing” Berkshire Hathaway, but that doesn’t mean Warren Buffett has lost his touch, according to a recent MarketWatch article by Larry Swedroe, chief research officer at the Buckingham Family of Financial Services. The problem isn’t that Buffett is off his game, writes Swedroe, but rather that “the value premium in U.S. stocks has been negative for more than a decade. Since Buffett’s investment strategy has always been value-oriented, this might… Read More

Buffett Likes U.S. Banks

Warren Buffett’s Berkshire Hathaway has increased its holding of financial services stocks to roughly $100 billion, about one-fifth of its total market capitalization. This according to an article inThe Wall Street Journal. “Berkshire’s position has built up over years and includes banks, payment companies, insurers and a ratings firm,” the article reports, with total holdings increasing from its 2010 level of 12% of market capitalization. It adds, “banks are often viewed as a proxy for… Read More

Buffett’s Philosophy Still Speaks Volumes

Warren Buffett is sticking with his value investing philosophy despite the rally cry among some that, this time, the strategy is “dead.” This according to an article in Bloomberg. While the Oracle of Omaha has been vocal in defending his philosophy during its previous bouts, the article reports that this time he has been “uncharacteristically missing from the chatter, but that doesn’t mean his views are any less clear, or any less worth paying attention… Read More

Why is Warren Buffett Buying Bank Stocks?

Berkshire Hathaway has been fueling its bank holdings over the past year and is now among the five largest shareholders in several including Bank of America, JPMorgan Chase and Goldman Sachs, according to a recent article in The New York Times that outlines some reasons why. Bank stocks, the article explains, tend to outperform when the economy is showing strong growth. “Right now,” it adds, “investors are thinking the exact opposite: Economic growth is slowing,… Read More

Tom Russo Still Follows Buffett Principles

In a recent WealthTrack interview with Consuelo Mack, veteran investor Tom Russo discussed why he has continued to follow Warren Buffett’s investing principles for over three decades. Here are some highlights: According to Russo, one of the biggest benefits to investors for holding Berkshire Hathaway stock is the alignment of management’s interest with those of shareholders. Berkshire management, he explained, focuses on enhancing the intrinsic value on a per-share basis. Russo argued that most CEOs… Read More

Investing and Life Advice from Warren Buffett

In a recent interview with Yahoo Finance, legendary investor Warren Buffett shared sage advice on investing and life. Here are some highlights: “By far, the best investment you can make is in yourself,” says Buffett, noting the importance of communication skills for young people. “It will increase your value by 50 percent,” he said. “You get exactly one mind and one body in this world, and you can’t start taking care of it when you’re… Read More

Warren Buffett to Donate Berkshire Shares

Last month, the world’s fourth richest man continued his effort to give away over 99% of his fortune to charity by donating $3.6 billion in shares of Berkshire Hathaway, according to an article inForbes. Buffett is a cofounder of The Giving Pledge, which “asks billionaires to commit at least 50% of their wealth to philanthropy, and in 2006 promised to donate all of his Berkshire Hathaway stock over time. “Much of Buffett’s largess has been… Read More

Warren Buffett: Investors Should Stop Picking Stocks

Warren Buffett claims that owning the S&P 500 index through a low-cost index fund will deliver about the same results as if he chose the stocks, “and maybe slightly better.” This according to a recent article in MarketWatch. “I think it’s the best investment because more people don’t know how to pick stocks. And—most of the time I don’t know how to pick stocks,” Buffett said. But, according to the article, the problem isn’t with… Read More

Buffett’s Formula Still Works

The performance of Berkshire Hathaway shares over the past 32 years has been “nothing short of phenomenal” notwithstanding industry noise that Warren Buffett’s legacy is being challenged. This according to a recent article in MarketWatch. “Buffett has done what few investors of any size have been able to accomplish,” the article argues, adding, “He has beaten the S&P 500, including dividends, for many decades and by many, many percentage points.” A track record that statistical… Read More

Is Warren Buffett the Greatest Factor Investor?

An article in CFA Institute offers an overview of how Buffett’s Berkshire Hathaway has avoided many of the major pitfalls suffered by other “star” investors and how, from a factor-investing perspective, the conglomerate has managed to outperform for decades. The article reports that Buffett’s “outperformance relative to the S&P 500 has been especially significant since 1991 and created immense value” for Berkshire shareholders. It adds that while there were some periods of underperformance, “these often… Read More