Warren Buffett Likes Tesco

Warren Buffett Invests in Tesco

Warren Buffett has acquired 3% of UK retailing giant Tesco, thu giving it a massive vote of confidence, despite the challenges it is facing in the US with its Fresh and Easy stores.

Berkshire Hathaway now owns 3.02% of Tesco – worth £242m and as Warren Buffett likes long-term holdings and re-investing dividends, you may want to follow his example if you are prepared to hold for the long-term.

The charts however are not looking good in the short-term and it may be possible to get a better price in a few days' or weeks' time. Warren Buffett of course is not at all interested in charts and may not even know what they are.

Tesco 3 year Chart with 50 and 200 day moving averages forming a nasty ' death cross ' at the end



Warren Buffett is also not afraid of buying British, although Tesco obviously has nothing to do with BP.

Tesco has more than 4,800 stores worldwide and is one of the largest retailers in the world. The chain recorded record profits last year, with a pretax increase of over 10% to 3.4 billion British pounds. Tesco will also soon be increasing its workforce by 16,000 to 472,000.

Tesco's rollout of Fresh & Easy stores fell somewhat flat and after the recession bit, Tesco slowed its roll-out and limited openings to Southern California, Arizona and Nevada.

This week Tesco announced it will be acquiring 2 Sisters Food Group and Wild Rocket Foods to cohabit with its own California distribution facility and improve its fresh food and meals-to-go offerings.

All in all if Warren Buffett is willing to put £242 million into Tesco then there is a good chance that the retailer has a promising future.

Home : Warrren Buffett

Warren Buffett to Launch Indian Insurance Co.

Warren Buffett Invests in Indian Motor Insurance

According to a report in the Economic Times, Warren Buffett is planning to set up a wholly-owned subsidiary in India to acquire a corporate agency licence to sell motor insurance via locally based company Bajaj Allianz.

The aim is for the new operation to sell motor insurance online, with an an investment of somewhere in the region of $10.9m, pretty small by Berkshire Hathaway standards, to establish a support structure, including a call centre.

This unusual strategy is said to have been thought up by Anit Jain, who visits India on a regular basis as part of Berkshire Hathaway’s reinsurance business in the Asian sub-continent. Berkshire Hathway operates as a direct insurer in the US via its Geico operation. In India, direct investment in insurance, reinsurance, or insurance broking by foreign companies, is restricted to a 26% stake.

A corporate agency on the other hand can be wholly foreign-owned. The downside is that each individual in such an agency will need to undergo training, and the agency can only promote the products of a single company. In addition, it does not underwrite its own business, but instead makes profits on commission payments.

With a population of around 1 billion India is a vast market and as car ownership increases it seems likely that Indians will be buying more motor insurance in future. For further information on India check out Visit India

Elsewhere Warren Buffett and Bill Gates have launched a campaign to get other billionaires to give away most of their money. They want America’s 400 or so billionaires to sign a Giving Pledge promising to donate at least half of their fortunes to charity. If thy do then this would triple the USA’s total amount of charitable giving. The Giving Pledge is not legally binding but Buffett has decided to set an example by promising to give away 99% of his money. Charities are delighted of course, but so far there has been no word from the children might expect to inherit the billions.

See also Warren Buffett's latest venture to teach children how to manage their money - Secret Millionaire's Club

Home : Warren Buffett

Make Money Like Warren Buffett

Warren Buffett - How to Make Money Like Warren Buffett

Warren Buffett is probably the most successful investor in history. He has been called "The Oracle of Omaha" (hence the name of this site) or also the "Sage of Omaha" due to the fact that he lives in Omaha and he is a very savvy investor. He is currently the third richest person in the world, behind Carlos Slim and Bill Gates. Buffett studied under Benjamin Graham at Columbia University, who was a major influence on Buffett and his investment style, which is basically long-term buy and hold value investing i.e. you find a good company that makes a lot of money and that has few competitors and you buy stocks in it and hold on to them. The stock market goes up over time and re-investing your dividends in the company will allow you to benefit from the power of compound interest.

Warren Buffett is Chairman of Berkshire Hathaway, which used to be a textile company and which Buffett grew into a major corporation. Berkshire Hathaway's shares averaged a 21.4% compounded annual gain in per-share book value from 1965-2006.

Warren Buffett's value investing strategy is in fact an adaptation of Benjamin Graham's approach, based on discipline, patience and value. He also likes to be greedy when others are fearful, as he was back in October when he started buying stocks for the first time in years. So far his decision has proved to be a wise one. Buffett generally likes to buy stocks in acquire great companies that are trading at a discount to their intrinsic value, and then to hold on to hold them for a very long time, forever if possible, although he recently sold some shares in Kraft as he did not agre with their decision to buy Cadbury.

Five tips from Warren Buffett to his son Peter Buffett

• Follow our own path - not the herd
• Give your kids opportunities - not handouts
• Give to charity and get  a lot back (not money)
• Invest in potential
• Do what you love - don't settle for anything other than your passion

He also only invests in businesses that he understands, and always ensures that there is a margin of safety. Another of his famous quotes is that he likes to "shoot fish in a barrel, but only when the water has run out".
He has also said in the past that Berkshire likes to buy "businesses ... (a) that we can understand; (b) with favorable long-term prospects; (c) operated by honest and competent people; and (d) available at a very attractive price."

He has also said he advises people to "buy stocks in companies that any idiot can run, because sooner or later one will". Click here to see hich books on investing Warren Buffett recommends Warren Buffett Recommended Books click here to see Warren Buffett's current stock holdings.

Home : Warren Buffett