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

Everyone Makes Mistakes, Including Warren Buffett

In last month’s Wall Street Journal, columnist Jason Zweig recently wrote, “If I had to write one sentence that is true always and everywhere, it would be this: Smart investors did stupid things again today.” Zweig outlined a series of investing mistakes, including Warren Buffett’s 1993 purchase of Dexter Shoe Co. using over 25,000 shares of Berkshire Hathaway stock. By 2007, Zweig notes, Buffett said the company was “a worthless business.” But neither Buffett nor… Read More

Dimon and Buffett: Short-Termism is Hurting Economy

JPMorgan Chase CEO Jamie Dimon and Berkshire CEO Warren Buffett joined forces to pen a recent Wall Street Journal article that warns against short-termism. “Every generation of Americans has the responsibility to leave behind a stronger, more prosperous society than the one it found,” they write. “The nation’s greatest achievements have always derived from long-term investments.” The article argues that, to this end, public companies should consider dispensing with providing quarterly earnings-per-share guidance (a view… Read More

Bidder Wins Lunch with Warren Buffett for $3.3 million

The annual charity auction for lunch with Berkshire Hathaway CEO Warren Buffett raised $3.3 million from an anonymous bidder, up from $2.6 million last year. This according to a recent article in The Wall Street Journal. The event has raised more than $25 million for the San Francisco charity Glide (a cause favored by Buffett’s first wife Susie), which offers free meals, health care and other services to the city’s low-income and homeless people. The… Read More

Buffett’s Proposed $3 Billion Uber Deal Crumbled

Berkshire Hathaway CEO Warren Buffett reportedly proposed investing $3 billion in Uber Technologies earlier this year, but disagreements over terms took the deal off the table. This according to a recent article in Bloomberg. The proposed agreement, the article reports, offered terms similar to those presented to Goldman during the financial crisis– a convertible loan that would protect Buffett’s investment should Uber hit hard times, along with significant upside if the ride-hailing company continued to… Read More

Oracle of Oxford is In the Red

A recent Bloomberg article reports that British “master” stock-picker and Buffett disciple Neil Woodford, whose flagship fund had outperformed his peers in 2015, is now “in the red and his slump is deepening.” The drop in Woodford’s 6.7 billion-pound ($9.3 billion) main fund extended this year’s decline to more than 7 percent, “one of the worst performances among competitors,” according to the article. In a video posted on his firm’s website, however, Woodford quickly reassured… Read More

Lessons on Warren Buffett’s Success from the Berkshire Annual Meeting

The Omaha World-Herald recently published an excerpt from “The Warren Buffett Shareholder: Stories From Inside the Berkshire Hathaway Annual Meeting,” an account by Georgetown University Finance Professor Prem Jain of lessons learned from attending the annual Omaha events: “The first important hint came to me when an MBA student asked Mr. Buffett’s advice on the type of job to pursue after graduation. Buffett’s suggestion was to pursue one’s passion, not referencing any specific job.” Jain… 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

Housel on the Strength of Compounding on a Small Base

In a recent article for the Collaborative Fund, Morgan Housel addresses the topic of compounding through several interesting anecdotes about ice ages and Warren Buffett, among others. A hundred years ago, Housel explains, a Serbian scientist discovered that our earth “wobbles just enough to change how much solar radiation is let in, occasionally enough to wreak havoc.” But Housel points out that subsequent studies found a more layered explanation, that moderately cool summers were the… Read More

Become an Equity Compounder à la Buffett

By John Reese (@guruinvestor) —  It’s a simple concept but, over time, it accomplishes extraordinary things. That’s how legendary investor and stock market guru Warren Buffett has described compound interest, a concept that Albert Einstein called the “eighth wonder of the world.” The idea is simple: If you invest even modest amounts of money at modest rates of interest and leave it invested over long periods of time, it can grow exponentially–since the interest you earn each year… Read More