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

Tuesday, 15 November 2011

Warrent Buffett's Latest Stock Buys

Warren Buffett's New Stocks


Video summary of Warren Buffett's current thinking about stocks, the economy and the housing market by Becky Quick of CNBC - scroll dow to see the list fo Warren Buffett's most recent stock picks




Berkshire Hathaway has reported that it has taken new positions in 6, one of which is IBM. Each stake, apart from IBM, is worth around $200 million, and Buffett doesn't deal in such small amounts so they were presumably bought by Todd Combs.

Warren Buffett bought $10.7 billion of IBM common stock this year - 64 million shares at an average price of $170, but he doesn't intend buying any more (unless the price drops).

Todd Combs bought.

DIRECTV (DTV) 4,249,400 shares, now worth $193.9 million.
General Dynamics (GD) 3,064,422 shares, now worth $200.1 million.
Visa 2,291,708 shares, now worth $215.0 million.
CVS Caremark (CVS) 5,661,000 shares, now worth $219.5 million.
Intel (INTC) 9,333,000 shares, now worth $229.9 million.

INCREASED STAKES

Berkshire also increased its stakes in two other stocks:
Dollar General (DG) - tripled stake to 4,497,247 shares.
Wells Fargo (WFC) increased stake by 3% to 361,369,808 shares, now worth almost $9.1 billion

Wells Fargo is a Buffett stake. Dollar General is Combs'.

Today's 13-F reports a 50 percent increase in shares of Torchmark [TMK 42.69 0.44 (+1.04%) ] held by Berkshire. That, however, is the result of a 3 for 2 stock split that became effective on July 5, just after the start of the third quarter. It is not the result of new buying by Berkshire.

DECREASED STAKES

Berkshire also did some selling, with significant reductions for two stocks and the size indicates Buffett took the decision.
Johnson & Johnson (JN) - decreased stake by 12% to 37,446,788 shares
Kraft Foods (KFT) - decreased stake by 10% to 89,746,708 shares

Sunday, 13 November 2011

Warren Buffett Buying Stocks

Warren Buffett's Stock Picks


Warren Buffett has been shopping again. Spending $23.9 billion over the third quarter, his biggest spending spree in at least 15 years.

Bloomberg reports that the "Oracle of Omaha" bought almost $7 billion of stocks over the quarter at a time when stocks had their worst quarterly performance since 2008.

Buffett's big moves says Bloomberg were "$6.9 billion of equities, $5 billion for preferred shares and warrants in Bank of America and the acquisition of Lubrizol for about $9 billion," according to Bloomberg.

"We're ready to buy lots of things," Buffett said to Bloomberg's Betty Liu on Sept. 30. "If the stock is cheap, we will buy it."

Investing ideas from the Motley Fool
The MF ran a screen on S&P 500 dividend stocks which were undervalued according to the Graham number. The Graham number was developed by Buffett's mentor Benjamin Graham

The Graham Number = Square Root of (22.5) x (TTM Earnings per Share) x (MRQ Book Value per Share). ??This equation assumes that a stock is overvalued if P/E is over 15 or P/BV is over 1.5.

Motley Fool list sorted by potential upside implied by Graham number.

1. NYSE Euronext (NYSE: NYX )
2. ConocoPhillips (NYSE: COP )
3. Best Buy (NYSE: BBY )
4. Sealed Air (NYSE: SEE )
5. BB&T (NYSE: BBT )
6. Raytheon (NYSE: RTN )
7. The Travelers (NYSE: TRV )
8. Invesco (NYSE: IVZ )
9. Carnival (NYSE: CCL )
10. Chevron (NYSE: CVX )