berkshire hathaway posts
"For good reason, there are hundreds of investment managers who are devout Warren Buffett-style value investors," observes Ian Wyatt.
The editor of The 100K Portfolio explains, "From 1965 to 2010, under Buffett's leadership, Berkshire Hathaway (BRK.A or BRK.B) has seen it's per share book value increase at an annual rate of 20.2 percent.
"Since Warren Buffett is now 80 years young, and his partner Charlie Munger is 87, the future leadership of Berkshire is certainly a concern.
Continue reading Berkshire Hathaway Offers Vision and Value
Berkshire Hathaway (BRK.B
) and Lubrizol (LZ
) announced a definitive agreement for Berkshire Hathaway to acquire 100% of outstanding Lubrizol shares for $135 per share in an all-cash transaction. Lubrizol overall option implied volatility of 31 is near its 26-week average, according to Track Data, suggesting non-directional price movement.
General Electric (GE
) closed lower on liability uncertainty related to Japan's troubled nuclear reactors. April option implied volatility of 30 is above a level of 27 from March 4 and above its 26-week average of 28, according to Track Data, suggesting larger price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com
Back in the summer of 2010 when the market was down, the gulf was full of spewing oil and investors were running away from bad news stocks shocked most notably by BP (BP
) oil spill, I decided to post a contrarian story
reminding readers that the fear was overblown and created a buying opportunity.
"My pal Warren" has said for years that we should buy on fear and sell on greed. The toxic stock portfolio was a result of this sentiment.
This is the fourth update to my ranting eight months ago that acquiring six of the most hated, and most highly traded stocks with constant negative headlines would outperform the overall market. The theory has born fruit as the toxic stocks are ahead and the difference is increasing over time.
Continue reading Chasing Value: Toxic Stock Update #4 -- BAC, BP, C, GE, GS, RIG
When dealing with large companies, have you ever felt you were living through a scene from a Seinfeld episode?
In January Wells Fargo (WFC) completed a majority of its integration with Wachovia, and I fear it will take years working out the bugs in the system. I say this because I am a major client, shareholder and trader dealing with the company on numerous levels, and the past few weeks would be comedic if not so infuriating.
Continue reading Chasing Value: Wells Fargo, a Seinfeld Episode?
Warren Buffett invested $232 million in BYD (BYDDF), a Chinese auto maker during the financial crisis, as reported by Reuters. As of December 2010 Buffett's 225 million shares were worth $1.18 billion. In 2009, the shares were valued at just under $2 billion. So from 2009 to 2010, Buffett's Berkshire Hathaway (BRK.A) lost about 40% of his investment.
But that is just the beginning. Now there is criticism surrounding the new Chinese car, dubbed the hybrid car F3DM.They center around two major areas, authenticity of the design and the overall workmanship of the car itself.
Continue reading Will Buffett Back Away from His Deal with BYD, the Chinese Auto Maker?
Prognosticators the world over are throwing in their 2 cents about "my pal Warren's" next market moves; especially since he announced last week that his trigger finger was itchy. When Warren Buffett, chairman of Berkshire Hathaway (BRK.A
) speaks, investors listen.
On Wednesday March 2, this investor threw in his two cents worth (see:Serious Money: What Should Warren Buffett Do Next?
) discussing possible acquisitions. Since all the "pro's", I use the term loosely, have had a say I thought I would give readers a chance to express some of their ideas too.
Continue reading Serious Money: Buffett's Next Buys -- You Pick'em
The first Chinese hybrid car, the F3DM, will hit U.S. showrooms next year from BYD Co. Ltd. (BYD). BYD, which stands for Build Your Dream, sold 240,000 F3DMs last year and Warren Buffet likes the company so much that Berkshire Hathaway invested $230 million in BYD in 2008. In fact, the latest BYD model will be on display at Berkshire's big meeting in May, as reported in New York Times.
BYD is a diversified energy company. In addition to its hybrid models Its products include solar panels, solar shaded parking systems, home energy storage systems and charging equipment and LED lighting. BYD plans to open showrooms in the Los Angeles area.
Continue reading Americans Get Ready for the First Chinese Hybrid Car
Last Friday Warren Buffett said he was anxious to pull the trigger on another large deal -- having only recently completed the Berkshire Hathaway (BRK.A and BRK.B) acquisition of the Burlington Northern Santa Fe Railroad. Since then, prognosticators far and wide have been making suggestions about his next possible moves.
Considering I wrote about the railroads the day before the BNSF announcement, I thought I would share a few ideas, old and new.
Continue reading Serious Money: What Should Warren Buffett Do Next?
Warren Buffett's Berkshire Hathaway (BRK.A) is sitting on $38 billion in cash. Buffett sent a 26-page letter to investors on Saturday, describing his forthcoming goals for this year. Some highlights of the letter are reported in Reuters.
First off, like many other large corporations Berkshire Hathaway has been hoarding cash. Now, Buffett feels that it's time to invest his bundle. He is actively searching for big deals. Reuters quotes him as saying: "Our elephant gun has been reloaded, and my trigger finger is itchy."
Continue reading Buffett's 'Trigger Finger Is Itchy' for Deals
There is no shortage of analysis on the investment techniques of Warren Buffett. It seems that the books about him could fill a library!
However, when looking at his principles, it is not always easy to figure out how he prioritizes things. Of course, few companies have all the criteria.
Well, according to an interview with the Financial Crisis Inquiry Commission recently, Buffett gave some interesting insight on this.
Continue reading Buffett Talks About His Investment Secret Sauce
For Warren Buffett, it wasn't a big deal. Monday, his company, Berkshire Hathaway (BRK.A), agreed to purchase the 19.9% of Wesco Financial Corp. (WSC) it did not already own for $548 million. The stock price was only up 1.33% in early trading. Then again, there was no surprise that this transaction would happen -- and that it would be at roughly the net value of Wesco.
Yet the deal certainly has significance. After all, Wesco has been a part of the Buffett empire for decades, and the chief of the company is Charlie Munger, who is the vice chairman of Berkshire. However, he is 87 years old and yes, he is actually thinking about the process of succession. To do this, there will need to be some reshuffling of assets.
Continue reading Buffett Picks Up the Rest of Wesco for $548 Million
The market is getting gently hammered today, but that only presents more opportunities from my perspective.
I am in Ixtapa, Mexico, nearing the conclusion of my first ever week long rest during a 35 year working career ... and counting. In some ways I am hoping to mold my future working environment from seashore to shining seashore -- all around the world -- taking advantage of modern technology. I am thinking of it as "have beach (+Internet), will travel."
Continue reading Chasing Value: Profiting from Ixtapa -- Buffett, Gold, Oil, Options and More
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