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

Building an Investment Checklist

By John P. Reese —  In this year’s letter to Berkshire Hathaway shareholders, Warren Buffett refers to the conglomerate’s “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” An article in the Wall Street Journal last month titled, “Warren Buffett’s Berkshire Moves Away from Stock Picking,” underscores the shift in the context of the conglomerate’s offer to purchase power-transmission firm Energy Future Holdings for… Read More

Timeless Quotes and Lessons for Every Investor from Buffett

An article in Yahoo Finance from earlier this year outlines a list of iconic quotes and lessons from billionaire investing legend Warren Buffett. Here are a few: Investing isn’t too complicated but know what you’re investing in—”You don’t have to be an expert on every company or even many,” he says, adding, “You only have to be able to evaluate companies within your circle of competence.” If you’re buying stocks, you shouldn’t want prices to… Read More

Investing Like Buffett Means More is Not Always Better

By John P. Reese —  When Warren Buffett was a kid, he liked to read. More than most kids. And we’re not talking comic books and bubble gum wrappers, either. He once recalled receiving the World Almanac as a gift when he was a young boy. “It was like heaven to me,” he says. Is it a coincidence that this voracious reader became one of the most successful investors of all time? Maybe not. When… Read More

Buffett and Berkshire Focusing More on Running Businesses than Stock-Picking

In his February letter to shareholders, Warren Buffett wrote that Berkshire Hathaway is seeing a “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” This according to a Wall Street Journal article from earlier this month. The trend is being underscored by the company’s recent bid to purchase the bankrupt power-transmission company Energy Future Holdings Corp. (including utility company Oncor) for $9… Read More

Buffett’s Airline Bet and Four Picks

In anticipation of its Prime Day this month, Amazon prepared for an onslaught of orders by “getting its delivery ducks in a row, including a fleet of over 20 dedicated Prime Air Cargo planes,” writes Validea CEO John Reese in a recent article for Nasdaq. Reese segued into Warren Buffett’s bet on major airlines and his general investment approach. Using stock screening models he created based on the methodology of Buffett and other market greats,… Read More

Berkshire’s Oncor Deal Feeds Buffett’s Energy Appetites

Berkshire Hathaway arrived at a deal to purchase one of the country’s largest power-transmission companies, making electricity one of the conglomerate’s biggest businesses. This according to a recent article in The Wall Street Journal. The bankrupt Energy Futures Holding Corp. will be acquired by Berkshire Hathaway in a deal valued at $18 billion ($9 billion of which will be cash), the article says, and will include the Texas-based company Oncor. The acquisition will further enhance… Read More