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One of the best gems on investment success from Warren Buffett came in his letter (dated Feb 28, 1997 for FY1996) to Berkshire Hathaway shareholders. Warren Buffett said: “Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following
In Berkshire Hathaway’s Annual Report 1996, Warren Buffett said in a section under the heading of Acquisition Criteria: “Charlie and I frequently get approached about acquisitions that don’t come close to meeting our tests: We’ve found that if you advertise an interest in buying collies, a lot of people will call hoping to sell you their cocker spaniels.
In his letter (dated February 29, 1988 for FY1987) to Berkshire Hathaway shareholders, Warren Buffett talked about Mr Market, the character used by his teacher and friend Benjamin Graham to personify the behavior of the market. Mr Market has uncontrollable emotional problems. Then Warren Buffett went on to say: “Following Ben’s teachings, Charlie and I let
In his letter (dated February 29, 1988 for FY1987) to Berkshire Hathaway shareholders, Warren Buffett said: “Ben Graham, my friend and teacher, long ago described the mental attitude toward market fluctuations that I believe to be most conducive to investment success. He said that you should imagine market quotations as coming from a remarkably accommodating fellow named Mr. Market
In his letter to Berkshire Hathaway dated March 1, 1993, for FY1992, Warren Buffett said: “Our equity-investing strategy remains little changed from what it was fifteen years ago, when we said in the 1977 annual report: “We select our marketable equity securities in much the way we would evaluate a business for acquisition in its entirety.
(https://www.youtube.com/watch?v=rLXtRjfVwcw)
To be able to identify solid companies, an investor needs, among other things, to have knowledge of three financial statements: the balance sheet, the income statement and the statement of cash flows. This post looks at what a Profit & Loss statement is. Here is a simple example of a Profit & Loss statement: ABCXYZ
In his Feb 25, 2012, letter to Berkshire Hathaway shareholders for FY2011, Warren Buffett listed three categories of investments under the headline of “The Basic Choices for Investors and the One We Strongly Prefer”: (i) Investments that are denominated in a given currency, including money-market funds, bonds, mortgages, bank deposits, and other instruments. (ii) Investments
In a September 26, 2011, news release, Berkshire Hathaway announced, to the surprise of many, a program to repurchase Class A and Class B shares of Berkshire. Here is an insight into Warren Buffett’s thinking about share repurchase. In his annual letter (March 1, 2000) to Berkshire Hathaway shareholders for Year 1999, he said, among
Berkshire Hathaway’s common stock investments include IBM or International Business Machines Corp. Based on Warren Buffett’s annual letter to shareholders dated February 25, 2012, for FY2011, Berkshire Hathaway has a stake of 5.5% in IBM. Given this 5.5% IBM stake, why did Warren Buffett said this in his annual letter: “We should wish for IBM’s
