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

Buffett’s Berkshire Bets Over $860 Million on Amazon

Berkshire Hathaway revealed that its new wager on Amazon totaled $860.6 million at the end of March, according to an article in Bloomberg that outlines key takeaways from the conglomerate’s recent 13F filing. The size of the investment, the article says, “gives more clarity to the wager that Buffett disclosed days before his annual shareholder meeting earlier in May” and “underscores the growing influence of Buffett’s investing deputies, Todd Combs and Ted Weschler,” who were… Read More

Perspective: Berkshire’s Amazon Stake and Value Investing

According to an article in Yahoo Finance, Berkshire’s recent investment in Amazon “flies in the face of his long-held investing views” and signals “it’s okay to buy high price-to-earnings multiple companies provided they will change the game at some point in the future.” The article notes that Amazon’s stock, which is trading at a “lofty” price-earnings multiple of 51 (data from Yahoo Finance), is “known for not having steady profits as it invests aggressively to… Read More

A Dozen Targets for a Buffett-esque Elephant Hunt

An article in Barron’s lists twelve potential “elephant sized” acquisitions for Berkshire Hathaway to consider based on analysis by a Credit Suisse team of analysts. The team, called HOLT, created a framework intended to find what the article describes as “Buffet-compatible stocks” using a financial metric referred to as “cash flow return on investment” (CFROI)-which they believe offers a clearer picture of a firm’s underlying strength than earnings metrics and is similar to the framework… Read More

Buffett: Delta Purchases Broke 10% Threshold by Mistake

Warren Buffett said that Berkshire’s increased stake in Delta Airlines mistakenly breached his comfort threshold of 10% due to buybacks by Delta. This according to an article in Bloomberg. The article reports that in an interview with CNBC, Buffett said, “What I didn’t realize was that that purchase had taken us over 10 percent. I was already in territory I didn’t plan to get, so I just decided to buy a whole lot more stock.”… Read More