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

Saturday, 20 February 2010

Warren Buffett Buying Into Waste

Warren Buffett Stocks Update

Warren Buffett and Berkshire Hathaway have been surprisingly busy in recent months. They reduced their holdings in Procter & Gamble, Johnson & Johnson, ConocoPhillips and Exxon Mobil in Q4 2009. But why would they be doing that ? Warren Buffett has famously said the best period to hold shares is "forever".

Berkshire Hathaway filed documents with the SEC disclosing their latest moves and other changes to its U.S. stock portfolio at 31 December 2009. In addition to these sales, Warren Buffett decided to increase his stake in Becton Dickinson, Iron Mountain, Republic Services and Wells Fargo.

But Berkshire has also obtained permission from the SEC to not disclose some information in order to protect its trading strategy. This is apparently par for the course for Berkshire Hathaway when it is involved in significant investment changes. According to Berkshire the information it has kept back could be detrimental to it if it were to be known as the market likes to coattail Warren Buffett. This implies of course that Mr Buffett has not finished his trades.

They sold 8.8 M shares in P&G during Q4, but still have 87.5 million.

Berkshire bought over 8 million shares in J&J over the first half of 2009, then sold 9.8 million shares in Q4 meaning it held 27.1 million shares in the company at year end.

They reduced their holdings in both Exxon and ConocoPhillips down to 421,800 in Exxon and 37.7 million in ConocoPhillips (down from 1.3 million and 57.4 million respectively). If my memory serves me right this means Warren Buffett has sold 20 million shares in ConocoPhillips after buying them when oil prices had peaked at $140 a barrel.

They increased their stake in Republic Services, waste haulage, to 8.3 million shares from 3.6 million at the end of September.

They doubled their stake in Iron Mountain, a data- and document-storage company, to 7 million shares and increased their stake in Becton Dickinson to 1.5 million shares from 1.2 million.

In a separate filing in Tuesday they disclosed they held 342.2 million shares in Wells Fargo, 6.7% of the bank, which is 30 million more shares than they had a year ago.

So why has Warren Buffett been selling ? Well, one thing we can be sure of is that Warren Buffett never does anything without a reason. One theory is that he is raising cash for the Burlington Northern (BNI) transaction. He may also think the recession is coming to an end and is therefore selling defensives and buying companies that should do better in a good economy.

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Tuesday, 16 February 2010

Warren Buffett to Meet US Shareholders

Warren Buffett to End Non-US Meet and Greet

Warren Buffett will meet investors and answer questions again this year at the Qwest Center arena in Omaha for more than five hours on May 1st but this year there will be no "Meet and Greet Reception" with international shareholders, due to increased attendance and time constraints.

The reception is also considered to have outgrown its original purpose. Jeff Matthews, author of “Pilgrimage to Warren Buffett’s Omaha” and founder of the Ram Partners LP hedge fund said “the amount of people who come from around the world is vast. It’s gotten to the point where it’s sort of outgrown its original purpose.”

See Business Week for the full story
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Wednesday, 3 February 2010

Warren Buffett Likes Munich Re

Warren Buffett Increases Stake in Munich Re.

Warren Buffett has increased his stake in Munich Re to 5.2% and, according to the Telegraph, he is buying as much as 15% of the German re-insurance company. He apparently actually has over 8% in “secret” accounts and is still buying stock each day as he moves towads a target of 15%.

Munich Re said on 19 January that Warren Buffett holds options which could increase his voting rights in the company to 5.029%. Buffett already held 3.084% in the company.

The figures show that Warren Buffett was Munich Re's largest investor on January 19, with a $1bn stake. BlackRock which reported in December holds 4.58%.

According to analysts, demand for reinsurance by primary insurers will necessarily increase as a result of Solvency II capital requirements for the insurance sector.

Clarification of the rules is awaited for mid-2010 and it is believed that reinsurers will benefit due to the increase in demand.

Hester Plumridge of the Wall Street Journal says preliminary full-year results from Munich Re. suggest Mr. Buffett is right to be optimistic, as it beat market expectations with net income up 62% from the previous year.

She also points out that the sector is trading at 8.5 times forward earnings, as cheap as it has ever been, a point which hasn't escaped the notice of Warren Buffett.

Munich Re plans to pay a 2009 dividend of €5.75 per share (€5.50 in 2008). They haven't released all its Q4 figures. These will be presented along with 2009 earnings on March 10.

With regard to Warren Buffett's holding Jorg Schneider CFO of Munich Re said that they do not consider him a competitor and "don't consider his investment a hostile investment," saying that Berkshire Hathaway Inc. has a reinsurance business of its own.

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Monday, 1 February 2010

Invest in Warren Buffett Stocks

How to Invest Like Warren Buffett

Which stocks does Warren Buffett own?

UPDATE : For the latest Warren Buffett stock holdings see Warren Buffett Stocks

Warren Buffett is one of the greatest investors of all time. You may wish therefore to follow what has become known as "the Warren Buffett way" and invest in stocks that he would invest in. This would require on your part a whole load of knowledge on how he chooses the stocks he chooses and why. You would then need to sift through company reports the way he does each and every day and also maybe get a bit lucky.

Fortunately you don't have to do that, as it is quite a simple matter to be a Warren Buffett coattail investor. Just find out what stocks he is buying (he reports them all to the SEC) and buy the same ones. To search the SEC documents just head on over to EDGAR and enter Berkshire Hathaway, then do a little detective work. As he is a long-term investor (the best holding period is forever he says) then you don't need to worry too much about timing your entry.

Even easier, for a mini-portfolio of Warren Buffett's stocks just take a look at this list of six stocks put together by Ryan Barnes at Investopedia -

Some of the stocks Warren Buffett owns

1. Nike Inc. (NKE-N)
2. Burlington Northern Santa Fe Corp. (BNI-N)
3. ConocoPhillips (COP-N)
4. Costco (COST-N)
5. The Coca-Cola Company (KO-N)
6. Procter & Gamble (PG-N)

As Ryan Barnes says "Warren Buffett has an uncanny ability to pick the stocks with the greatest potential for growth." He also has the patience and the deep pockets that allow him to wait. Famous for his quotes Warren Buffett once said "the stock market is a method for transferring money from the impatient to the patient".

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