Buffett’s Resolutions for 2020

This past year was “unremarkable” for Warren Buffett’s Berkshire Hathaway as the conglomerate’s cash hoards continued to grow and any “elephant” acquisitions remained elusive. This according to a recent article in Bloomberg. The article notes that although the past year was “boring” for Berkshire, it marked the end of a “transformative” decade that included the following events: Berkshire’s purchase of BNSF, “America’s most expansive railroad systems” as well as recognizable brands such as Duracell and… Read More

When Warren Buffett Thanks You for “Client Alpha”

By Justin Carbonneau (@jjcarbonneau) Imagine for a moment you were one of the very first investors in Berkshire Hathaway in 1965 and you’ve stayed committed to Buffett all these years (54 years and counting be exact). You’re meeting him today to profusely thank him for producing the results he has. You say, “Warren, I want to thank you for producing the long-term outperformance over the market you have delivered on my investment. You’ve more than… Read More

Buffett’s Bid for Tech Data Thwarted

Berkshire Hathaway’s $5 billion offer ($140 per-share) for technology distributor Tech Data Corp. was beat by private equity firm Apollo Global Management last month with an offer of $145 per share in cash. This according to an article in The Wall Street Journal. Tech Data is a wholesale distributor of products including computer hardware, software, consumer electronics and cellphones that reported net income of $91 million for the quarter ended October 31st. The article quotes… Read More

Buffett’s Berkshire Hathaway See Record Profits and Cash

Berkshire Hathaway’s operating profit peaked in the third quarter, pushing the conglomerate’s 2019 net income to “a staggering $52 billion, making Berkshire the most profitable public company in the world.” This according to an article in Bloomberg. The article notes that Buffett also “has more cash than ever to play with: $128 billion. That’s the record which has Berkshire’s stock languishing as investors grapple with a question amid all the superlatives: what comes next?” CFRA… Read More

Why Buffett is Sitting on Piles of Cash

A recent article in MarketWatch ponders the question of why Warren Buffett has chosen to maintain and even add to his massive cash balances. “One reason may lie in this chart,” the article argues, noting the trend in the ratio of market capitalization to GDP, a metric Buffett has described as “the best single measure of where valuations stand at any given moment:” “As you can see,” the article explains, “the ratio suggests valuations are… Read More

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