WEB:The Oracle of Omaha- Warren Buffett
- Roger_Babson
- Roger_Babson
- Kirk
- Kirk
- KLR
- Kirk
- DennisL
- jbking
- Rande
- Rande
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» Roger_Babson - Re: Re: Re: Released 3/10/01
In response to message posted by Rande:Rande, Buffet and Harry Dent in the same context?! PLEASE!!! I have the greatest respect for Buffet, primarily because of his longevity in the business, experience, and skill.
That BRK.A is likely to match the NYSE decline in the bear market decline ahead does not take away from my admiration for Buffet. Were Buffet in a partnership as he was in the late 1960s and could find "no bargains", as he then put it, he could liquidate the partnership (and its statutory limitations) and seek out "corporate assets" (as opposed to whole companies) that were undervalued to purchase, as he did with Berkshire at that point in history.
One must keep in mind, too, that the vast majority of Berkshire's holdings today were acquired in the 1970s, during the most undervalued (as distinct from "underpriced") market since the 1930s in real and nominal terms.
Buffet has gotten literally a lifetime's worth of gains from his original investments, thus at his age he is surely seeking less to grow the equity of the company and instead position the company to be liquid for the next generation of leadership of Berkshire, should that be the firm's course.
Dent is a circus barker, and is nothing more than a bubble phenomenon.
-- posted by Roger_Babson
» Roger_Babson - Re: Buffett takes a stake in Gap
In response to message posted by Kirk:Is this a straight underpriced asset play by Buffet?
-- posted by Roger_Babson
» Kirk - On Speculation and Valuation
extracted from Berkshire 2000 Annual reportNow, speculation -- in which the focus is not on what an asset will produce but rather on what the next fellow will pay for it -- is neither illegal, immoral nor un-American. But it is not a game in which Charlie and I wish to play. We bring nothing to the party, so why should we expect to take anything home?
The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities -- that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future -- will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.
If you like what you read the link below has the completely letter and is more interesting..
http://www.berkshirehathaway.com/2000ar/...
(or the owner's manual which is just as interesting)
http://www.berkshirehathaway.com/2000ar/...
-- posted by Kirk
» KLR - Buffett calls for Calif. energy czar
Some interesting pearls from Warren covering everything from CA power problems to buy n' hold. I like the part where he says he doesn't much care what the economy is doing.Buffett calls for Calif. energy czar
Hedges economic forecasts, says he's in the game to stay
By Jon Friedman, CBS.MarketWatch.com
Last Update: 4:54 PM ET April 29, 2001
OMAHA, Neb. (CBS.MW) - Warren Buffett, chairman of Berkshire Hathaway, Sunday called for the appointment of an energy "czar" to fix California's energy problems.
Buffett, who has an estimated net worth of $35 billion, has said he is considering making sizeable investments in energy companies. While he didn't refer to his possible investment plans, he told a gathering of reporters in Omaha that someone needs to take charge of the problem on the West Coast.
"I think you could solve it in a major way" by appointing a central figure to take command, said Buffett. He also said that this person could settle the difficulties caused by "squabbling constituents."
Speaking in a relaxed manner before a mass of television cameras in a Marriott Hotel, Buffett stressed that the energy czar "should have an incentive" to avoid a duplication of the disaster that has occurred already. He also called it a "flub in capitalism that's pretty extraordinary."
Smiling, to take the sting out of his words, Buffett noted that the California energy crisis could be likened to virginity: it "can be preserved but not restored."
Buffett's partner at Berkshire, Charles Munger, who lives in California, was even more emphatic. He said California's energy woes represent "everybody's idiot example of how not to run a system."
The press conference culminated a whirlwind weekend for the 70-year-old Buffett. He presided over a 5-1/2-hour question-and-answer session with his shareholders on Saturday and also made numerous personal appearances in Omaha. An estimated 12,000 to 17,000 people attended the annual meeting. See full story.
Staying in the game ... regardless
Speaking about the role the economy plays in his business and investment decisions, Buffett was clear: "Charlie and I don't think about it." Buffett stressed that regardless of whether the economy looks good or bad at the moment, "We're in the game."
While pointing out he does not closely follow economic forecasts, Buffett noted that the slowdown "has continued to this day ... much of the economy has hit a wall in a major way."
Noting that he does not like to make predictions, Buffett shrugged and said that the economic slowdown "can last a couple of months, or a couple of years. I don't know."
The conference is so widely attended every year because it gives the public a rare glimpse into the thinking of one of the world's wealthiest men. Shareholders and reporters alike came from as far away as Australia and Japan and most were noticeably impressed by the sight of Buffett.
Asked by a reporter to discuss his philosophy of selling a business or an investment, Buffett said strongly that he tries not to sell at all.
He said he would resort to selling when there is a "lack of comfort" about either a management, an accounting plan, or a company's diminished competitive advantage.
"We don't like to sell things," Buffett said.
Shares of Berkshire Hathaway (BRKA: news, msgs, alerts) gained $1,005. on Friday to end at $67,005.
-- posted by KLR
» DennisL - Re: Buffett on Diversification
In response to message posted by Kirk:Is Buffett saying here that diversification is for ignorant dummies? If so, I am greatly offended by that remark. It seems to fly in the face a generally accepted and sound investing principle.
My investments are very well diversified and I don't consider myself to be an ignorant dummy at all.
-- posted by DennisL
» jbking - Re: Buffett on Diversification
In response to message posted by Kirk:In a way I can see the logic of that. If you are making individual stock selections then why shouldn't you just take those top picks and not feel the need to hold other stocks just for the sake of being a drag. Of course a flip side to this is whether you want to be on top of your portfolio or someone that leaves their portfolio all alone for a while.
http://news.morningstar.com/doc/article/... has some interesting notes from Warren about Fund directors that is worth a look.
JB
-- posted by jbking
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