Legendary value investors' secrets
November 24, 2024
Back in December 2007, Warren Buffett made a ten-year US$1 million prize bet (background reading: Warren Buffett is set to win this US$500,000 wager) with asset manager Protégé Partners. Essentially, Warren Buffett wanted to prove a point: that his pick – a virtually cost-free investment in an unmanaged S&P 500 index fund – would, over…
Read More about Warren Buffett wins bet and charity gets US$2.2m instead of US$1m“In the short run, the market is a voting machine; in the long run, however, it becomes a weighing machine.” – Benjamin Graham Legendary value investor Warren Buffett, the chairman of Berkshire Hathaway, once again cited the abovementioned maxim of Benjamin Graham in his FY2017 letter to shareholders. What is so endearing about this quote…
Read More about Warren Buffett: Don’t treat marketable common stocks as ticker symbolsDoes Warren Buffett or Berkshire Hathaway hold certain stocks forever? To answer this question, one needs to go back to Berkshire Hathaway’s 2016 Annual Report 2016, in which chairman Warren Buffett said: “Sometimes the comments of shareholders or media imply that we will own certain stocks “forever.” It is true that we own some stocks…
Read More about Does Warren Buffett or Berkshire Hathaway hold certain stocks forever?“The years ahead will occasionally deliver major market declines – even panics – that will affect virtually all stocks,” Warren Buffett said in his FY2016 letter to Berkshire Hathaway shareholders. “No one can tell you when these traumas will occur – not me, not Charlie, not economists, not the media. Meg McConnell of the New…
Read More about Warren Buffett: Two things to remember during scary periods“Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius,” Warren Buffett said in a comment in Berkshire Hathaway’s FY2016 annual report. “But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars,…
Read More about The Fourth Law of Motion that Sir Isaac Newton failed to discoverBackground on Warren Buffett’s US$500,000 wager: Warren Buffett said in Berkshire’s 2005 annual report that active investment management by professionals – in aggregate – would over a period of years underperform the returns achieved by rank amateurs who simply sat still. Recalling his argument, he said in his FY2016 letter to Berkshire Hathaway shareholders: “I explained…
Read More about Warren Buffett is set to win this US$500,000 wagerBerkshire Hathaway’s four long-standing criteria in selecting a new board director: owner-oriented, business-savvy, interested and truly independent. Chairman Warren Buffett said: “I say “truly” because many directors who are now deemed independent by various authorities and observers are far from that, relying heavily as they do on directors’ fees to maintain their standard of living….
Read More about How Berkshire Hathaway selects a new director“Woody Allen once explained that the advantage of being bi-sexual is that it doubles your chance of finding a date on Saturday night,” Warren Buffett said in his FY2015 letter to Berkshire Hathaway. Why did the Berkshire Hathaway chairman say this? “In like manner – well, not exactly like manner – our appetite for either…
Read More about When it comes to stocks, Berkshire Hathaway looks for wonderful companiesWarren Buffett’s FY2016’s letter dated February 25, 2017, to Berkshire Hathaway shareholders showed the group had 61,242,652 Apple Inc shares, a stake of 1.1 per cent costing US$6.747 billion and worth a market value of US$7.093 billion. This has since doubled. According to a CNBC report on Feb 27, 2017, the stake had doubled in…
Read More about Warren Buffett loves Apple“Excellent business results by corporations will translate over the long term into correspondingly excellent market value and dividend results for owners, minority as well as majority,” Warren Buffett once said. How true this is even today although Mr Buffett said this as far back as 1978 in a letter to Berkshire Hathaway shareholders for FY1977….
Read More about How Warren Buffett picks stocks