The $64,000 question...er, $152,000 per A share question is: what is Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) really worth? The best person to ask is Berkshire creator and chairman Warren Buffett. The challenge? In his latest annual report he refuses to give us a number. But he instructs us on how to get that number and I believe the results prove Berkshire remains an excellent value for more »
It just seems counterintuitive that the greatest investor of all time, Warren Buffett, could make the bulk of his fortune with just a few decisions to purchase companies without a real exit strategy. It just sounds too simple.
We've seen Buffett's defense of inactivity in trading stocks and it sounds almost trite:
"The idle rich get a bad rap: it’s actually a heck of an investment strategy more »
It took the near collapse of the economy for Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) to get served up extraordinarily generous preferred stock deal solicitations from Goldman Sachs and General Electric. In addition, a mega bank's need for capital in 2011 brought Buffett $3 billion in a preferred stock/warrants deal with Bank of America.
So what can he pull off in a stock market at more »
What prompted this idea was a dinner I had recently with a friend who disagrees with my macro outlook: he has a dire forecast for the world--worried about political instability and supply disruptions for oil in the Mideast.
So I asked him: Are you buying gold, a bunker, hoarding cash?? Nope..he said "I'm loading up on oil stocks."
I told my friend I share his optimism on oil more »
I'm doing a 21st Century take on Peter Lynch '80s advice to observe what your family and friends buy at the Mall. Fast forward to 2013 where we're dropping big bucks at the virtual Mall anchored by Amazon. Problem for a value guy is--triple digit PE large caps with thin margins don't pass our test. So..who's delivering all this stuff?
Its my new found buddy more »
Several weeks ago, I argued Berkshire Hathaway (NYSE: BRK-B) (NYSE: BRK-A) offered an extraordinary Risk/Reward proposition --priced just above Warren Buffett's Buyback Price of 1.1 Times Book Value. Since then, Buffett has raised his Buyback Offer to 1.2 Times Book...and predictably the stock price sits, again, slightly above that level. Berkshire remains largely unfollowed on Wall Street, largely misunderstood on Main Street, and still deeply more »
Here's a personal twist on the Dogs of the Dow theory that may lead you to a potentially dependable Blue Chip thats temporarily on sale:
I screen for the absolute worst annual Dow performer-- ex-tech stocks and cyclicals. Technology Obsolescence can be permanent...and cycles that drive cyclical stocks can last years--not months.
So who wears the 2012 "Non Tech, Non Cyclical Dow Dog" Crown? Its a Blue more »
I gotta come clean and fess up right off the top. Typically, I disclose stock ownership or other conflicts at the end of a Blog. But I'm consumed with a far more serious conflict here. From my first car in life: a '70 Chevy Nova I paid $400 for, and blew the pants off anything on the road--to today, 3 decades later my pride and joy 2-seater sports car more »
The Dogs of the Dow Shelter is a place folks visit this time of year hoping to fall in love with something really special that others have given up on, ignored, or neglected.
These lovable Dogs feature attributes Value Investors wanna snuggle up with and hug: the Dogs are usually big in size, have a distinct pedigree of financial success, and their prices are marked down enough to assure each more »
Peruse the picks of America's top value investors and you'll find financial stocks scattered among almost all of the portfolios. Certainly not in the quantity of the pre-2008 financial crash when financials dominated the value landscape--but financials still attract the value crowd. They're just too cheap to ignore.
But many investors are gun shy, and with good reason. We've witnessed the severe harm inflicted by just more »
Legendary mutual fund Guru Peter Lynch once said he loved "hated companies with ugly names in boring, out of favor businesses". Seems rather intuitive the masses would not pile into companies that fit that dubious description. And that may imply favorable pricing. Lynch said his idea of a great name is "John Black Funeral Home".
In that spirit, following the 2008 near death experience of the financial industry--where can you more »
As a long time Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholder, I assure you Warren Buffett is NOT in the stock hyping business. He made no effort to promote his stock for decades, never issued a Dividend, never (until a small purchase in 2011) bought back a single share of stock, never issued commentary to an analyst, never promoted its coverage in the investment community, and never that I recall more »