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February 24, 2020

Posts by: Buffettpedia

What has Matthew 6:21 to do with director independence?

In his annual letter dated February 28, 2004, to Berkshire Hathaway shareholders, chairman Warren Buffett shared how several institutional shareholders and their advisors decided that he lacked “independence” in his role as a director of Coca-Cola. “…independence is defined in Webster’s as ‘not subject to control by others’,” Mr Buffett said, adding: “I’m puzzled how

Warren Buffett: There is seldom one cockroach in the kitchen

In his annual letter dated Feb 21, 2003, to Berkshire Hathaway shareholders, chairman Warren Buffett had three suggestions for investors. Mr Buffett’s first suggestion was for investors to beware of companies displaying weak accounting. “If a company still does not expense options, or if its pension assumptions are fanciful, watch out. When managements take the

Investment vs Speculation

“An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” – Benjamin Graham (The Intelligent Investor) Giving his thoughts on Investment versus Speculation in his opening chapter in The Intelligent Investor, Benjamin Graham, the father of value investing, said: “Outright speculation

Berkshire Hathaway abandons “book value per share” practice

Berkshire Hathaway has abandoned its long-time practice of featuring the percentage change in its per-share book value. In his annual letter dated February 23, 2019, to Berkshire Hathaway shareholders, chairman Warren Buffett said: “Long-time readers of our annual reports will have spotted the different way in which I opened this letter. For nearly three decades,

Warren Buffett on prudence in acquisitions

In Warren Buffett’s annual letter to shareholders dated February 24, 2018, for FY2017, one line stands out in the section on acquisitions: “Despite our recent drought of acquisitions, Charlie (Munger) and I believe that from time to time Berkshire will have opportunities to make very large purchases. In the meantime, we will stick with our

Understanding Warren Buffett’s moat strategy

Warren Buffett’s long-held “moat” strategy has come to the fore in the wake of an argument between the legendary investor and Telsa’s Elon Musk. A CNBC report (Warren Buffett responds to Elon Musk’s criticism: ‘I don’t think he’d want to take us on in candy’) quoted Telsa’s Musk as saying this week that “moats are lame”

Buffett, Munger have harsh words for cryptocurrency

Berkshire Hathaway chairman Warren Buffett minces no words when it comes to cryptocurrency, calling bitcoin “probably rat poisoned squared” and his right-hand man, Charlie Munger, has even harsher words, saying “it (cryptocurrency) is like someone else is trading turds and you decide I can’t be left out”. A Yahoo Finance May 6, 2018, report (Why

Berkshire Hathaway takes a bigger bite of Apple, dumps IBM

Warren Buffett’s Berkshire Hathaway bought an additional 75 million shares of Apple in the first quarter of 2018, while dumping its remaining stake in IBM, said a Bloomberg May 4, 2018 report  (Buffett Buys a Further 75 Million Apple Shares, Sells Out of IBM). The report quoted the Berkshire Hathaway chairman as having said in

Why Warren Buffett steers clear of bitcoin

Legendary value investor Warren Buffett is still dismissive of bitcoin as an investment. He laid out his latest thinking on the cryptocurrency in a recent interview with Yahoo Finance (Warren Buffett on buying bitcoin: ‘That is not investing’, April 28, 2018). “If you buy something like a farm, an apartment house, or an interest in

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