Tag archives: Warren Buffett

The Fair Value of Berkshire Hathaway

Last update on March 7, 2016.

 Warren Buffett

Image credit: Kent Sievers / Shutterstock.com 

 

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll show a simplified valuation of Berkshire Hathaway, the company run by the famous Warren Buffett.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of February 2016 were as follows:

 

Last Month

Last 12 Months

Since Apr 2013

Slightly Aggressive

-1.9%

-2.9%

+45.2%

Balanced

-1.6%

-2.3 ...

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The Essays of Warren Buffett (Book Review)

Last update on June 4, 2015.

If you’ve ever wanted to understand and appreciate Warren Buffett’s investment philosophy—and what makes him the brilliant investor that he is—you may want to listen to the Oracle himself, and pick up what he considers his favorite “Buffett book.”1

 

Summary Analysis

The Essays of Warren Buffett: Lessons for Corporate America is a collection of excerpts from Buffett’s annual letters to the shareholders of Berkshire Hathaway. For many years, these letters have distilled—and continue to distill—the invaluable insights shaping the great investor’s personal approach, and have, collectively, constituted what is considered to be the definitive source for Buffett’s unique ...

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Are You Willing To Hold An Investment For 10 Years, As Buffett Suggests?

Last update on Feb. 8, 2015.

 10 Euro Bill

 

"Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years." - Warren Buffett

When I read the above quote for the first time, I was a novice investor and I couldn't wrap my head around it. Back then, I thought value investing was about investing in companies with low Price to Earnings ratios and/or companies with low Price to Book ratios. I noticed that these ratios moved up and down a lot, which meant that stocks that looked like "value stocks" one year did not fit the description the ...

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How Warren Buffett Picks Stocks

Last update on Oct. 27, 2014.

 High jump

 

I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over. - Warren Buffett

When I first read the above quote, I was pretty new to investing. So when I read it, it didn't make any sense to me.

Warren Buffett is widely regarded as the most sophisticated investor alive. He has expertise in accounting, finance, economics, regulation, as well as intimate knowledge of many industries. By all accounts, he uses his knowledge in all of these areas before he makes a single purchase of stock. So how can ...

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How Warren Buffett Defines Risk

Last update on Aug. 28, 2014.

 Risk

 

Risk comes from not knowing what you're doing. - Warren Buffett

 

If you mention Buffett's quote above to most people, you'll likely get a nod that says "oooh, that's deep". But if you ask them what they think it means, you will likely get confused stares.

In this article, I will explain what Buffett means when he says risk comes from ignorance. In fact, this quote reveals the way we see risk, and how he sees it differently from how many other people see risk.

 

Shortcomings Of The Traditional Measure Of Risk

As ...

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