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

Warren Buffett is the Best Stock Picker

A recent article by Bloomberg columnist Nir Kaissar highlights the investing gifts of billionaire CEO Warren Buffett—who recently released his annual letter to Berkshire Hathaway shareholders. Kaissar underscores how Buffett has routinely beaten the market by investing in companies that are “highly profitable and selling at a reasonable price.” But Kaissar notes that Buffett has done so by a wide margin, even after factoring in profitability and value premiums. “The per-share market value of Berkshire… Read More

Buffett is Giant Trader of U.S. Treasury Bills

After several years of struggling to find acquisition targets, Berkshire Hathaway has used its growing pile of cash to become one of the world’s largest owners of U.S. Treasury bills. This according to a recent article in The Wall Street Journal. As of last September 30, the article points out, Berkshire held $109 billion in cash and, according to CEO Warren Buffett, “nearly all of that was invested in short term bills,” a bigger holding… 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

U.S. Government Just Gave Investors Part of their “Super Stock” for Free (Sort Of)

By Justin J. Carbonneau (@jjcarbonneau) —  Sometimes someone says something that hits you like a ton of bricks. Well, in early January Warren Buffett was on CNBC and one of the topics he was discussing was tax reform and its impact on the value of stocks (see full video here, pick it up at the 17 min mark). In classic Buffett fashion, he makes a few very salient points that are worth digging into. Buffett… Read More

Buffett Says Tax Cut is Bullish for Stocks

The new tax legislation, which lowered the corporate tax rate from 35 percent to 21 percent, is “significantly altering how investors value equities and the market,” according to a recent CNBC article. On CNBC’s Squawk Box earlier this month, Warren Buffett said, “The tax act is a huge factor in valuation.” Simple math, said Buffett, says that the tax bill will result in a stock owner’s share of corporate profits increasing from 65 percent to… Read More

The Value of Cash and the Gurus

By Justin J. Carbonneau (@jjcarbonneau) — Cash may be one of the most boring things to talk about when discussing a company and its investment prospects. Things like a company’s business model, its stock price, its future growth forecast, its yield, and its valuation are far more exciting. But cash is an asset that gives companies many options both in terms of pursuing growth opportunities and other forms of capital allocation like buying back shares,… Read More

Zweig on Buffett and Bitcoin

Author and columnist Jason Zweig says that successful investors–such as Warren Buffett and Charlie Munger–can set aside emotions, according to a recent CNBC article. At the recent Evidence-Based Investing conference in New York, Zweig mentioned Berkshire Hathaway’s Buffett and Munger as among the top tier, adding that they are “inversely emotional and are able to turn emotions inside out,” and “acutely sensitive to the fear inside other people” which they then take advantage of. With… Read More