Archives of “warren buffett” tag

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What’s Warren Buffett Buying Now?

  
Analysis, Education, US Market
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warrenbuffet-buyingDon’t miss to read……..

As shares of Berhshire Hathaway Inc. (NYSE: BRK.A, BRK.B) plunged over the past year, it became fashionable to ask whether or not Warren Buffett had lost his touch.

(See: ETF Guide: Down $16 Billion – Has Warren Buffett Lost His Touch?; MSN Money: The problem with Warren Buffett; Forbes: Has Buffett Lost His Touch; Reuters: Is Warren Buffett losing his touch?)

In June, financial advisor and CNBC contributor Dennis Gartman even called Buffett “an idiot.”

But now that Berkshire has rallied more than 35% from its March lows, the only idiots to be found are those that ever doubted the world’s second-richest man’s business savvy. Indeed, many of the moves Buffett made during last year’s market melee are paying off in a big way. (more…)

8 people have same wealth as world's poorest half -Oxfam

  
Analysis, Education
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Eight men now own the same amount of wealth as the poorest half of the world. A top corporate CEO earns as much in a year as 10,000 garment factory workers in Bangladesh. And the world’s 10 biggest corporations together have revenue greater than the 180 poorest countries combined, according to a study published Sunday by Oxfam.

The report, An economy for the 99%, was released as global leaders and the business elite traveled to Davos, Switzerland, for the annual meeting of the World Economic Forum, a conference partly aimed at eliminating extreme income inequality. The study found that the richest eight people on the planet have net wealth of $426 billion — equivalent to what’s held by the bottom half of the world’s population.

“From Nigeria to Bangladesh, from the U.K. to Brazil, people are fed up with feeling ignored by their political leaders, and millions are mobilizing to push for change,” British-based Oxfam said in a statement. “Seven out of 10 people live in a country that has seen a rise in inequality in the last 30 years.”

The study is the latest in recent years by Oxfam, an international poverty-fighting group, to campaign for ways to reduce the growing gap between the rich and poor. Oxfam called on President-elect Donald Trump, world leaders and the international business community to “take urgent action to reduce inequality and the extreme concentration of wealth by ensuring that workers are paid a decent (salary) and by increasing taxes on both wealth and high incomes.”

“It is mind-boggling that just eight men own as much wealth as the poorest half of the world’s population, but that’s the sobering reality of 2017,” said Paul O’ Brien, Oxfam America’s vice president for policy and campaigns. “Such dramatic inequality is trapping millions in poverty, fracturing our societies and poisoning our politics.”

Oxfam based its calculations on data from Swiss bank Credit Suisse’s 2016 Global Wealth report and Forbes’ billionaires list of the world’s richest people. (more…)

Planning, Discipline & Patience.

  
  Education
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  • Predicting rain does n’t count; building arks does’: Warren Buffett’s Noah Rule.
  • “To know and not to do, is not yet to know” – Courtesy of Tom Witters.
  • ‘It’s easy to have faith in yourself and have discipline when you’re a winner, when you’re number one. What you got to have is faith and discipline when you’re not a winner.’ – Vince Lombardi
  • ‘After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!’ – Jesse Livermore

Top 25 All-Time Warren Buffett Quotes

  
  Education
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When reading Berkshire Hathaway’s annual letters or hearing him speak, one can always take away a few great quotes from value investor extraordinaire Warren Buffett. It should come as no surprise that he is so good at dishing out words of wisdom. After all, he is known as the Oracle of Omaha. We thought it would be prudent to assemble some of his best advice in one cohesive post.MYQUOTES
1. “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1”
2. “In a bull market, one must avoid the error of the preening duck that quacks boastfully after a torrential rainstorm, thinking that its paddling skills have caused it to rise in the world. A right-thinking duck would instead compare its position after the downpour to that of the other ducks on the pond.”
3. “The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable.”
4. “Be fearful when others are greedy. Be greedy when others are fearful.” (more…)

Learn from Jesse Livermore's personal life than from his trading techniques :Jesse Livermore Boy Plunger

  
Analysis, Education
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1929-crash

Jesse Livermore, the so called “Boy Plunger” and probably the greatest Wall Street Trader who ever lived, died $340,000 in debt.

Many look at his life to learn the secrets of his often extraordinary trading success. A better track for financial prosperity is to study and learn from mistakes he committed in his personal life.

The clues for true riches can be found there. The lessons from his personal failures are exponentially more important for modern investors than his exploits in the commodities and stock markets.

During the Stock Market Crash of 1929, Jesse Livermore made $100 million dollars betting that the stock market would plummet in spectacular fashion.

When he arrived home after another appalling day of market bloodletting in October of 1929, both his wife and mother-in-law met him at the door in tears. (more…)

Lessons from Lehman: ‘Don’t Panic’

  
  Education
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WEEKEND-READINGWarren Buffett is not called the ‘Oracle of Omaha’ for nothing.

‘Be fearful when others are greedy, and be greedy when others are fearful’ is good investment advice looking back at the turmoil of September 2008.

The demise of Lehman Brothers five years ago marked the start of a truly fearful six months for investors. Only in March 2009 had risky asset prices fallen far enough for bargain-hunting buyers to begin picking up equities and lower-quality bonds.

On the anniversary this weekend of Lehman’s collapse, those investors who stayed the course in equities and junk bonds can afford a smile. The S&P 500 index has gained 50 per cent.

They have done well, though alternative bets made in 2008, such as buying a New York City taxicab medallion, have done even better. (more…)

Warren Buffett not lured by gold

  
Analysis, Education
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Warren BuffetEverybody is bullish on gold these days. You even have outfits like ‘Cash For Gold’ peddling their trades at your local mall. But historically, gold has never been a great long term investment.

While the love for gold can take this commodity to $3,000, be sure to get off the train before the top. Because once it goes down, it stays down for decades.

NEW YORK (Commodity Online): A gold boom is on and despite the ‘bubble talk’ on gold, every investor worth the name is running after the shining metal. From Jim Rogers to John Paulson, most investors or investing analysts have argued that gold is the best investment bet against rising inflation and declining US dollar value. They all are waiting for a gold bull run that will go past $2000 per ounce in 2010.

But Warren Buffett, the world’s richest investor and billionaire businessman, has not yet fallen for gold. His ideas on gold and why he is not interested obsessed with investing in the shining yellow metal should be an eye opener for all those who are running after gold.

Here are some reasons why gold is not luring Warren Buffett, and why there are better, erudite and lasting investing options than gold.

”Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” Warren Buffett. (more…)

Five Timeless Rules of Investing Learned From Jesse Livermore

  
  Education
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.  “My greatest discovery was that a man must study general conditions, to size them up so as to be able to anticipate probabilities.”  What did Livermore mean by “general conditions”?  He meant the macroeconomic environment and geopolitics.  Are they favorable or not favorable to buying stocks?  Today, the Fed is raising rates and squeezing the money supply (the monetary base declined last month for the first time in years; a year ago, it was going up 10%.)  The war in the Middle East is heating up.  These general conditions are not conducive to a bull market, except for gold!

2.  Learn from wise old men who have experience in the markets.  In Reminiscences of a Stock Operator , the author talks about “the Old Turkey,” a “very wise old codger” who counseled Jesse Livermore on making good investment decisions and avoiding mistakes.  How can you do this?  The best way is to read histories of the great investors such as Warren Buffett, Peter Lynch, John Templeton and J. Paul Getty.

3.  Learn your strengths and weaknesses.  “We’ve all got a weak spot.  What’s yours?” asks the Old Turkey.  A good question that we must all answer.  “Study mistakes,” he counsels.  You don’t learn from your successes, only from your mistakes!

4.  Always save some of your gains.  “I was again living pretty well, but always saving something, to increase the stake that I was to take back to Wall Street.”  Unfortunately, Livermore made the mistake of not living up to his own advice.  He leveraged himself too much, and often went bankrupt.  By taking some of your gains and investing the funds in alternative investments, such as real estate, art and collectibles, or gold coins, you protect yourself in case you are wrong.

This reminds me of something that happened to me many years ago.  I had made a $2 million profit on a penny stock and my wife sat me down and insisted I pay off the mortgage, which was sizeable.  I told her I preferred to reinvest the profits in more penny stocks, but she insisted, and I finally agreed with her and paid off the mortgage.  It was the best decision “I” ever made!  Had I invested the profits in more penny stocks, I would have lost my shirt, because the penny stocks went into a major bear market soon after.

5.  Beware the charismatic financial guru!  “It cost me millions to learn that another dangerous enemy to a trader is his susceptibility to the urgings of a magnetic personality when plausibly expressed by a brilliant mind.”  Oh, how true.  I well remember the times I invested in several tax shelters that eventually went bust, because I was thoroughly convinced by a smooth talking salesman who seemed brilliant at the time.

When Buffet Breaks His Rules

  
Analysis, Education
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Reading some headlines, I see that Buffet has “dumped Walmart” and “bought airline stocks” both of which seem to violate his rules: 1. to keep a stock forever and 2. never buy airlines.

It would seem that the math of such a big fund has forced him to change. Buying a small market value stock and riding the exponential growth once it succeeds no longer adds much to his returns. Since he is so diversified with such big companies hanging on forever gives market like returns and one is much more efficient by buying an index. So it would seem he is left with trying to time the market, on big companies and/or sectors, to add value to his shareholders.

My question is has he been successful when he has violated his rules in the past? Or does he like most of us get humbled by the markets when we try something new?

TRADING QUOTES

  
  Education
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Planning, Discipline & Patience.
  • ‘Predicting rain does n’t count; building arks does’: Warren Buffett’s Noah Rule.
  • “To know and not to do, is not yet to know” – Courtesy of Tom Witters.
  • ‘It’s easy to have faith in yourself and have discipline when you’re a winner, when you’re number one. What you got to have is faith and discipline when you’re not a winner.’ – Vince Lombardi
  • ‘After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!’ – Jesse Livermore

Fear

  • ‘Never let fear of striking out, get in your way’: Babe Ruth.

Perspectives

  • ‘It’s tough to make predictions, especially about the future,’ – Lawrence Peter ‘Yoggi’ Berra.
  • “go as far as you can see, and when you get there , you will see further.” –
  • anonymous
  • ‘Don’t worry what others think… They don’t do it very often’ – Courtesy of Mark Carstens.
  • “A little learning is a dangerous thing, but we must take that risk because a little is as much as our biggest heads can hold.” – George Bernard Shaw.
  • “Those who cannot remember the past are condemned to repeat it” – George Santayana.
  • “Glory is fleeting but obscurity is eternal” – Napoleon
  • ‘A long term investment is when I break even.’ – Courtesy of David Wong. (more…)
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