For Hedge Funds, Being Like Buffett Isn’t Easy

While Warren Buffett’s track record is appealing to large private equity firms, his buy-and-hold strategy (averaging 10-20 years rather than the hedge fund industry norm of 3-5 years) can be hard for many to adopt, according to a recent Bloomberg article. “To play,” the article says, “they would need to give themselves lots of time—decades, in fact—and as near-to-permanent capital as they could muster. Ambitious buyout firms bet that by raising long-duration funds, they would finally… Read More

Buffett Speaks at Forbes’ Centennial on the Dow, Geico and U.S. Prospects

The Dow At the one hundred year anniversary of Forbes magazine, the billionaire CEO of Berkshire Hathaway predicted that the Dow Jones Industrial Average will breach 1 million in the next century, according to a recent article in The Wall Street Journal. That would require the index to grow by 3.9% annually (over the last 100 years, it has grown by 5.8% annually over the last 100 years). “The continued climb,” the article says, “is… Read More

Buffett Bets on Trucking

Last week, Berkshire Hathaway announced an agreement to purchase a 38.6% stake in Pilot Travel Centers LLC for an undisclosed amount, according to a Wall Street Journal article that calls it “Berkshire’s latest wager on traditional forms of transportation and U.S. economic growth.” According to the article, the Tennessee-based company, better known as Pilot Flying J., is the largest operator of truck stops in the U.S. as well as one of the country’s largest private… Read More

A “Flywheel” Approach to Investing

By John Reese — Teacher and leadership coach Jim Collins has authored and co-authored six books that delve into the inner workings of corporations and what makes them succeed or fail. One of the many concepts he features in his books, articles and lectures is that of the flywheel: “No matter how dramatic the end result, good-to-great transformations never happen in one fell swoop. In building a great company or social sector enterprise, there is… Read More

Buffett’s Investing Advice

Billionaire investing phenom Warren Buffett shares a synopsis of his career path history in a recent article for Forbes, recalling his early passion for reading about investing and the heavy influence his father had on his career choice. “If he’d been a shoe salesman, I might be a shoe salesman now,” quips Buffett. The Berkshire Hathaway CEO reminisces how he had read every book on investing in the Omaha Public Library by the time he… Read More

Would You Fire this Guy?

By John Reese — If there’s one thing that’s hard to persuade investors to be, it’s patient. The urge to chase the hot idea or the manager with the dazzling recent track record is incredibly powerful. The resolve to resist crowd mentality can falter when it seems as if everyone else is winning and you’ve been left behind. Imagine hiring a manager in 1997 and for the three year period to 2000, he clocks a… Read More

Buffett Wins his 10-Year, Million-Dollar Wager

Warren Buffett is the winner in the bet he made with finance professionals back in 2007 that, over the ten years between January 1, 2008 and December 31, 2017, the S&P 500 would outperform a portfolio of funds of hedge funds (when performance is measured on a basis net of fees, costs, and all expenses). This according to an article in this week’s AEI. Ted Seides, co-manager of Protégé Partners, was the only fund manager to… Read More

Buffett Converts BofA Warrants

Berkshire Hathaway CEO Warren Buffett secured an $11.5 billion gain by exercising warrants to purchase 700 million shares of Bank of America Corp., according to an article in Bloomberg. The share purchase will result in a $16.5 billion stake in the Charlotte, North Carolina-based bank. In 2011, Buffett invested $5 billion in BofA in exchange for the warrants and preferred stock, assuaging doubts that the bank had insufficient capital reserves. Since that time, the shares… Read More

Investors: Become “Unshakeable” With These Five Investing Commandments

By John P. Reese — Keep Calm and Carry On was a motivational poster produced by the British government in 1939 in preparation for World War II. The poster was intended to raise the morale of the British public as they faced the threat of mass air attacks. Today, the motto can be found on a seemingly endless array of merchandise ranging from coffee mugs to car seat covers. If only the notion was as widely embraced by investors as it is by… Read More

Buffett’s Favorite Words

In March, data scientist Michael Toth conducted a sentiment analysis on Warren Buffett’s annual letter to Berkshire Hathaway shareholders (dated from 1977 to 2016) to identify the billionaire’s most commonly used positive and negative words. This according to a CNBC article posted in June. The top six unique words, according to Toth’s findings, are (in this order): Loss Gain Worth Significant Debt Outstanding According to the article, “Although two of those words have negative associations—loss… Read More