Warren Buffett Quotes

Warren Buffett is almost as famous for his quotes and one-liners as for his investing - see this selection of Warren Buffett Quotes on Life

Thursday, 12 February 2009

Does Warren Buffett Like Nexen

The Oracle of Omaha - Is Warren Buffett Eyeing Up Nexen?

There are rumors doing the rounds that Warren Buffett aka the Oracle of Omaha is taking a look at Nexen Inc.. the Canadian oil and natural-gas producer. Nexen reported a Q4 loss of C$181 million on writedowns of assets and a loss from gas trading.Warren Buffett
Nexen missed by 11 cents the average analyst estimates. Without the writedown, it earned 26 cents a share, said Lanny Pendill, Edward Jones & Co. analyst.

“The trading loss is what caught the markets by surprise. They placed a bet and they got it wrong.”

Nexen fell 2.7% on the Toronto Stock Exchange.

According to Scotia Capital however in an e-mail to clients : “Seems there is a rumor that Berkshire is interested in Nexen – no one can give me comfort that this is indeed the case – they haven’t bought into the E+P [exploration and production] names before... but stranger things have happened. We are looking for a weak [quarter] when they [Nexen] report on Thursday – marketing division coming out with bad numbers/ they laid off a number of their [natural] gas guys."

Warren Buffett went to have a look at the Athabasca oil sands region in August at which time they toured Canadian Natural Resources Ltd.’s Horizon project.

Mr. Buffett said on CNBC that he was there for "educational purposes".

“What I learn today may be useful to me two years from now. I mean, if I understand the tarsands today and oil prices change or whatever may happen, I’ve got that filed away and I can use it at some later date.”

“If you had $120 oil from now till, you know, 50 years from now, that the tarsands would work out very well. But I don’t know the answer to that [where oil prices will be.”

Warren Buffett, in an interview with the Financial Post in 2008 said demand for energy would make the oil sands valuable. It is that they hold the second-largest reserves in the world, afte Saudi Arabia.

“The world will be using more oil 15 or 20 years from now. We are on a course that cannot be changed. It would surprise me if the world doesn’t want to use 100 million barrels a day in 15 or 20 years. ..... You need some ... elephant fields and we haven’t found any elephant fields in the last 15 or 20 years. So the sands are huge.”

Warren Buffett is famous of course for value investing so he would only take a position if he can see long-term value .

Neither Warren Buffett, Berkshire Hathaway nor Nexen would comment.

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Thursday, 5 February 2009

Warren Buffett Likes Swiss Re

The Oracle of Omaha - Warren Buffett Invests 3 billion SFR in Swiss Re

Swiss Re, the world's second biggest reinsurer, stumbled a little deeper into the embrace of its rival, Warren Buffett's Berkshire Hathaway, yesterday as it launched a SFr5bn (£2.9bn) attempt to repair its finances.

Warren Buffett has injected SFr3bn into Swiss Re which means that he may soon control 20% of the company. The new deal comes just a year after Berkshire Hathaway took a 3% stake in the company.

Asked if Berkshire Hathaway might take over Swiss Re, George Quinn CFO said there was "no poison pill" to prevent a takeover.

Swiss Re were 70% below their value a year ago. The company said losses for 2008 would be about SFr1bn.

Swiss Re which is second behind Munich Re in providing insurance to insurers – has been brought low by its operations in credit default swaps (CDS), the same business that AIG was in, which was nationalised by the US government. Swiss Re says it is closing the whole division.

The SFr3bn ($2.5 bn) investment from Berkshire Hathaway is in the form of a convertible note, which will pay 12% interest and is convertible into Swiss Re shares at SFr25 per share after 3 years.

Jacques Aigrain, CEO said Warren Buffett's decision to invest more cash in Swiss Re "is a testament to the strength of our franchise".

Warren Buffett said: "I'm very impressed by Jacques Aigrain and his management team."

Warren's wisdom: Cashing in on the crunch

Berkshire Hathaway's also handed over $300m to Harley-Davidson, which is also facing a cash crunch.

Warren Buffett is doing more than just provide cash of course. The Oracle of Omaha is trying to persuade others to invest too (for the long-term).