Buffettpedia – Page 10

Investment criteria

Warren Buffett’s Rip Van Winkle approach

December 17, 2014

In his letter (dated February 28, 1992 for FY1991) to Berkshire Hathaway shareholders, Warren Buffett gave an insight into his Rip Van Winkle approach to investing. Referring to a list of Berkshire Hathaway’s common stock holdings – comprising Capital Cities/ABC Inc, The Coca-Cola Company, Federal Home Loan Mortgage Corp, GEICO Corp, The Gillette Company, Guinness PLC, The Washington…

Investment criteria

Warren Buffett on intelligent investing

December 16, 2014

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…

Investment criteria

Berkshire Hathaway’s acquisition criteria

December 12, 2014

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….

Marketable securities

Marketable securities: operating results count

December 11, 2014

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…

Investment philosophy

Mr Market’s incurable emotional problems

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…

Investment criteria

Berkshire Hathaway equity-investing strategy

December 9, 2014

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….

Videos

Warren Buffett Biography – Documentary

December 7, 2014

(https://www.youtube.com/watch?v=rLXtRjfVwcw)

Understanding financial statements

Understanding financial statements (Profit & Loss Statement)

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…

Investment criteria

Warren Buffett’s investment choice: productive assets

December 6, 2014

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…