แสดงบทความที่มีป้ายกำกับ warren buffet แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ warren buffet แสดงบทความทั้งหมด
วันจันทร์ที่ 7 มกราคม พ.ศ. 2562
วันพฤหัสบดีที่ 21 มิถุนายน พ.ศ. 2561
Warren Buffett: ‘Tesco was a huge mistake’
Billionaire investor’s fund Berkshire Hathaway owns 4.1% of supermarket but falling share price has cost it £465m in a year
credit: https://www.theguardian.com/business/2014/oct/02/warren-buffet-tesco-huge-mistake
Renowned US investor Warren Buffett has said he made a “huge mistake” by investing in Tesco, as the problems mount at Britain’s largest retailer.
Tesco shares have slumped 45% this year as the supermarket issued four shock profit warnings and last week became embroiled in an accounting scandal, admitting it had overstated its profits by £250m. The retailer has been the worst performer in the FTSE 100 index this year and its shares are at an 11-year low.
Buffett, pictured, known as the Sage of Omaha and one of the world’s richest people, is Tesco’s third-largest shareholder, with a 4.1% stake, held through his Berkshire Hathaway investment business. However, the value of Buffett’s stake has fallen by about $750m (£465m) this year.
Buffett first bought into Tesco in 2006 – when Tesco was expanding rapidly in the UK and across the globe and was planning to open a new chain in the US – and steadily increased his holding.
However its US business, called Fresh & Easy, was eventually closed down altogether at a total cost of £1.8bn.
Undaunted by a shock profit warning from the company, Buffett raised his stake to over 5% when others were selling the stock. Tesco was the only stock in his top 15 picks that recorded a loss last year. Buffett told CNBC: “I made a mistake on Tesco. That was a huge mistake by me.”
The UK’s financial regulator has launched a full-scale investigation into the accounting scandal that has plunged Tesco even deeper into crisis. The retailer’s new boss, Dave Lewis, is tasked with restoring Tesco’s battered reputation as well as fixing its business amid rapidly declining sales.
Meanwhile, star UK fund manager Neil Woodford – who decided to sell his stake in Tesco in 2012 after its first profit warning – said last week it could be a long time before any of the British supermarkets became good investment prospects again.
Elsewhere in the grocery sector, Sainsbury’s shares fell again on Thursday, trading down nearly 4% at 224.8p, after its new boss, Mike Coupe, revealed a slump in sales and warned that Britain’s supermarkets are facing a “perfect storm” of problems.
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credit: https://www.theguardian.com/business/2014/oct/02/warren-buffet-tesco-huge-mistake
Warren Buffett says bitcoin is 'rat poison'
Warren Buffett says bitcoin is 'rat poison'
Tell us how you really feel, Mr. Buffett.
The price of bitcoin took a dive after Warren Buffett renewed his criticism of the cryptocurrency — even comparing it to rat poison.
Bitcoin had been closing in on $10,000, but it fell nearly 6% Sunday and was down another 2% Monday to just over $9,300.
Buffett, the CEO of Berkshire Hathaway (BRKB), has been a bitcoin bear for years. He has often compared the cryptocurrency to gold, saying that both assets are strictly speculative and don't produce earnings and dividends like stocks do.
Before the Berkshire annual meeting on Saturday, Buffett told CNBC that bitcoin was "probably rat poison squared."
During the meeting itself, Buffett joked that "if you had bought gold at the time of Christ and you figure the compound rate on it, it's a couple tenths of a percent." What Buffett was saying about bitcoin was that you can buy it, but it will never produce anything of value.
He also responded to a question from the audience about bitcoin by saying that it and other crytpocurrencies "will come to bad endings."
Berkshire vice chairman and longtime Buffett confidant Charlie Munger was even more blunt.
"I like cryptocurrencies a lot less than you do," Munger said to Buffett. "To me, it's just dementia. It's like somebody else is trading turds and you decide you can't be left out."
Munger has also referred to bitcoin as poison. At the shareholder meeting of The Daily Journal(DJCO), a newspaper publisher in Los Angeles where Munger serves as chairman, he called it "noxious."
Strong words. But to be fair to bitcoin bulls, both Buffett and Munger have been wrong about the cryptocurrency. Buffett in particular.
He first called bitcoin a "mirage" in 2014 — back when it was trading for about $600. So even with the recent pullback, bitcoin has drastically outperformed the broader market, not to mention Berkshire stock and top Berkshire holdings like Apple (AAPL).
That's why some cryptocurrency experts think that investors should ignore Buffett's and Munger's repeated bitcoin bashing.
"What I do find monumentally baffling is that two of the world's most successful investors cannot see the intrinsic value of some form of cryptocurrency," Nigel Green, CEO of financial consulting firm deVere Group, wrote in a report early Monday.
"Do they honestly believe that there is no place for, and no value of, digital, global currencies in an increasingly digitalized and globalized world?" Green added.
Warren Buffett explains one thing people still don't understand about bitcoin
Warren Buffett explains one thing people still don't understand about bitcoin
When it comes to bitcoin, billionaire investor Warren Buffett wants to make one thing clear: Unlike buying stocks, bonds or real estate, buying bitcoin is not an investment.
That's because it lacks intrinsic value, Buffett says.
"If you buy something like bitcoin or some cryptocurrency, you don't have anything that is producing anything," Buffett says in an interview with Yahoo Finance. "You're just hoping the next guy pays more. And you only feel you'll find the next guy to pay more if he thinks he's going to find someone that's going to pay more.
"You aren't investing when you do that, you're speculating."
Famous for his "buy and hold" investment strategy, the Berkshire Hathaway CEO built his company — and his $82.8 billion net worth — backing companies that have substantive value.
"Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value," Buffett wrote in his 1996 letter to shareholders. "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."
To be an investment, what you're buying has to be worth something on its own, Buffett says.
For example, "If you buy something [like] a farm, an apartment house or an interest in a business and look to the asset itself to determine whether you've done something — what the farm produces, what the business earns ... it's a perfectly satisfactory investment," Buffett explains to Yahoo Finance. "You look at the investment itself to deliver the return to you.
"If you ban trading in farms, you could still buy farms, and have a perfectly decent investment," Buffett says.
Bitcoin, however, only increases in value by being bought and sold, he argues. Its value comes from what people are willing to pay.
"[I]f you ban trading in ... bitcoin, which nobody knows exactly what it is, people would say, 'Well why in the world would I buy it?'"
"The idea that it has some huge intrinsic value is just a joke in my view," Buffett said.
In 2017, bitcoin soared from below $1,000 at the start of the year to over $19,000 in December, catching the attention of everyone from J.P. Morgan Chase CEO Jamie Dimon to NFL players. Tuesday, bitcoin traded near $8,900 according to CoinDesk's price index.
Buffett sees a bleak future for the digital currency.
"In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending," Buffett told CNBC in January."When it happens or how or anything else, I don't know."
Of course, Buffett has been wrong about backing new technologiesbefore. He missed opportunities to invest in Google and Amazon, decisions he now calls mistakes.
"I did not think [founder Jeff Bezos] could succeed on the scale he has," Buffett said to shareholders in May 2017.
Crypto-enthusiasts argue that Buffet doesn't understand blockchain-based coins, and he has admitted as much.
Still, many other investing experts like CNBC's Jim Cramer, Kevin O'Leary and Tony Robbins, also call buying cryptocurrencies a gamble. They suggest thinking of it like rolling the dice in Las Vegas.
"As long as you can afford to lose everything you put into it, go with it," O'Leary told CNBC Make It in December, 2017.
That mindset is alright with Buffett.
"There's nothing wrong with it if you want to gamble [that] somebody else will come along and pay you more money tomorrow," Buffett tells Yahoo Finance. "That's one kind of game. That is not investing."
Don't miss: Here's how much grad school cost when Warren Buffett graduated in 1951, compared to today
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credit: https://www.cnbc.com/2018/05/01/warren-buffett-bitcoin-isnt-an-investment.html
วันพุธที่ 20 มิถุนายน พ.ศ. 2561
Investment Lessons from Warren Buffett
Investment Lessons from Warren Buffett
Why has Warren Buffett developed a huge throng of devotees? Well, sure, he’s amassed a fortune of nearly $60 billion, making him one of the wealthiest people on earth. But that’s not the only reason professionals and amateurs interested in financial management follow the Berkshire Hathaway CEO so avidly. There’s a clarity and sturdy logic to Buffett’s philosophy that makes it attractive to fund managers and small-scale investors alike.
Retirees, in particular, would do well to take a few pages from Buffett’s playbook. Here are six that have extra significance for those entering their post-workday years.
1. Think Long-Term
A few years ago, an Associated Press-LifeGoesStrong.com poll found that more than one in four adults expect to live to at least 90, including nearly half of those who said they were currently 65 or older. And census data suggests that by mid-century, ninetysomethings will make up 2% of the total U.S. population, up from 0.7% in 2010. So it’s important to make your money last.
One of the best ways to do that is to keep a percentage of your portfolio in the stock market.
Yes, that may seem to fly against conventional wisdom: Seniors are often advice to allocate their assets away from capital appreciation and towards income-producing vehicles.
The key, according to Buffett, is to stay in the market but focus on stable companies that look like a good play over the long haul. His admiration for a certain soft drink maker is a perfect example. Back in 1988, he purchased more than $1 billion of Coca-Cola stock, calculating that its strong brand would safeguard the business from competitors.
Buffett turned out to be right. Coke’s stock price grew roughly 16-fold over the next 27 years.
2. Do Your Homework
Not all of Buffett’s investments have looked like home runs right after he made them. But more times than not, his decisions proved to be the right ones over time. A big reason: the iconic investor does his research before making a big decision. Often, that gives him the confidence to go down some less-than-obvious paths.
Berkshire’s gamble on Burlington Northern Santa Fe in 2009 was a case in point. On the heels of a major recession, purchasing a major railway operator seemed dicey, to say the least. But the company’s fundamentals suggested otherwise.
Buffett’s move now looks prescient. The carrier’s revenue rose to $23.2 billion in 2014, up from $18 billion in 2008, before Buffett bought it. Research has its rewards.
3. Keep Emotion in Check
Mom-and-pop investors often make decisions based on gut reactions. When the market turns south, they start selling off stocks. When it’s up, they buy more. It's natural, but not a smart investment strategy, since they often end up losing money on the sales, and spending too much on the purchases.
Buffett advocates doing the exact opposite. “Be fearful when others are greedy, and be greedy when others are fearful," as he once wrote in a New York Times op-ed piece. Follow that advice and you’ll end up buying low and selling high, which is precisely how you maximize profits.
This is especially important for people in retirement. The occasional downturn is unavoidable. If you panic and start selling, you’re not giving the market time to rebound. Historically, it always does. (And don't forget, if you're in your 60s now, you may well have a good 20 years or so to ride out market fluctuations.)
4. Invest in Ideas
According to Buffett, having a genius CEO at the helm doesn’t necessarily make a company worthwhile. Instead, what he focuses on are businesses with an unshakable competitive advantage.
He once told investors to select companies so wonderful that even an idiot could run them. If you don't think that applies to a particular organization, you might want to think twice before buying shares in it.
5. Try Passive Investing
Buffett has built his fortune by beating the market with his stock picks. But he realizes that most individuals don’t have that ability. So in recent years, he’s been a big advocate of index funds, whose portfolios simply mimic a certain benchmark like the S&P 500.
In a letter to Berkshire investors, he once wrote: “The goal of the non-professional should not be to pick winners – neither he nor his “helpers” can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well.” For some specific ideas, see 3 Passive Index Funds That Are Top Bets for Retirement in 2016 (VCIT, HYG).
The advantage of index funds is that, without an active fund manager, they keep expense ratios and other costs low (since they have low turnover, they also generate lower long-term capital gains, making them also relatively tax-efficient). In fact, Buffett has instructed the trustee of his estate to leave his wife mostly index funds when he eventually passes away.
6. Find a Good Value
At heart, Buffett has always been a value investor, buying up stocks that he thinks are underpriced. He only purchases shares that have a significant “margin of safety” – that is, they’re selling well below what they’re truly worth. If he thinks a stock is worth $20 a share, he might wait until it’s going for $17.
The key, then, is having patience. Know what you’re willing to pay for a stock – or a slice of an index fund, for that matter. If the market is commanding more, resist the urge to dive in.
When you have a margin of safety with your investments, you’re not only maximizing potential gains, but minimizing potential losses. For someone who’s already living out their retirement, that’s more important than ever.
วันพฤหัสบดีที่ 14 มิถุนายน พ.ศ. 2561
Joel Greenblatt: Philanthropy
Philanthropy[edit]
Greenblatt is also famous for his contributions to education in New York City. In 2002, he donated $2.5 million to P.S. 65Q, a public elementary school in the borough of Queens, whose students come largely from the neighborhood's South American and South Asian immigrant communities. This investment, equal to about $1,000 per student per year over five years, helped P.S. 65Q to go from a struggling school to an urban success story almost overnight. He continues to aid the school in Ozone Park currently as they have continued to rise. Recently the school and principal Rafael Morales received a progress report score of A, scoring 98 out of a possible 100 points.
In 2006, Greenblatt also helped start the Success Academy Charter Schools, then known as the Harlem Success Academy Charter School, an elementary school in the city's historically African American neighborhood.[10] He is also a board member of the Institute for Student Achievement, a national leader in developing new small high schools and transforming large comprehensive public high schools into small learning communities.[11]
Greenblatt is a founding Master Player of the Portfolios with Purpose virtual stock trading contest.
Joel Greenblatt: Career in finance
Career in finance[edit]
Gotham Capital[edit]
In 1985, Greenblatt started a hedge fund, Gotham Capital, with $7 million, most of which was provided by junk-bond king Michael Milken.[3] Through his firm Gotham Capital, Greenblatt presided over an impressive annualized return of 40% from 1985 to 2006.[4]
Value Investors Club[edit]
Greenblatt co-founded a website with John Petry called the Value Investors Club,[5] where investors approved through an application process exchange value and special situation investment ideas. Membership is capped at 250 members and considered highly prestigious.[6] A 2012 academic study showed that the recommendations of members do in fact appear to generate significant abnormal profits.[7] The club awards $5000 bimonthly to members who provide the best advice.[8]
Magic formula investing[edit]
His book The Little Book that Beats the Market introduced an investment strategy of "magic formula investing", which is a method for determining which stocks to buy: "cheap and good companies" with a high earnings yield and a high return on invested capital. His strategy is featured in The Guru Investor by John P. Reese.
Formula Investing[edit]
In October 2009 he launched Formula Investing,[9] an online money management firm that follows the investment strategy described in his New York Times bestselling book The Little Book That Beats the Market. Formula Investing is a money management firm that uses a proprietary stock-screening system and a disciplined approach to manage portfolios of value stocks. The firm offers its services to individual investors and institutions and to registered investment advisors, who can use Formula Investing as a sub-advisor.
Formula Investing uses a system that determines portfolio selections based on a combination of their relative cheapness and quality, as measured by earnings yield and return on capital. Formula Investing allows money to be managed in a disciplined manner that removes factors, like excess emotion and future projections, that often lead to bad investment results.
John C. Bogle
ohn Clifton "Jack" Bogle (born May 8, 1929) is an American investor, business magnate, and philanthropist. He is the founder and retired chief executive of The Vanguard Group.
His 1999 book Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor became a bestseller and is considered a classic within the investment community.
Seth Klarman: Investment philosophy
Investment philosophy[edit]
Klarman is a known value investor, and has stated that he has known he was one since junior year of college at age 25. During an interview at Harvard Business School, he stated: "It turns out that value investing is something that is in your blood. There are people who just don’t have the patience and discipline to do it, and there are people who do. So it leads me to think it’s genetic."[15]
When asked what drives his fund's overall investment strategy and how value investing fits into the hedge fund market he replied:
Klarman has been an avid supporter of the teachings of Benjamin Graham, and during the 2008 financial crisis criticized the short-term thinking of other fund managers, he believes that the "this-time-is-different" mindset will give a false sense of security to investors and they ought to look at the bigger picture. He stresses the utility in the economy's business cycles and their predestined and perpetual self-corrective tendency.[15] Klarman is known to sit on 30% to 50% of his funds in cash as to avoid unfavorable market conditions and only buys stocks he thinks have a suitable mispricing.[7]
He makes unusual investments, buying unpopular assets while they are undervalued, using complex derivatives, and buying put options. During his first years running Baupost he made it a point to only invest in companies that were not widely accepted by the Wall Street community; he stressed managing risk and using the margin of safety.[7] He is a very conservative investor, and often holds a significant amount of cash in his investment portfolios, sometimes in excess of 50% of the total.[18]Despite his unconventional strategies, he has consistently achieved high returns.[19] Klarman looks for companies that are traded at a discount (so he can assume shares with a margin of safety). Klarman and his fund usually go "bargain hunting," when companies are distressed or face low growth or declining years. It was reported by The Boston Globe in 2015 that when energy stocks were declining, his firm "started looking for deals."[20] According to Institutional Investor, "[Klarman] has succeeded by deftly exploiting under-valued markets whether they are in equities, junk bonds, bankruptcies, foreign bonds or real estate."
Seth Klarman: Early life and education
Early life and education[edit]
Seth Andrew Klarman was born on May 21, 1957 in New York City.[6][2] When he was six he moved to the Mt. Washington area of Baltimore, Maryland near the Pimlico Race Track,[7] and grew up in a traditional Jewish family.[8][9][10] His father was a public health economist at Johns Hopkins University and his mother taught high school English.[11][12] His parents divorced shortly after their moving to Baltimore.[7]
When he was four years old he redecorated his room to match a retail store putting price tags on all of his belongings and gave an oral presentation to his fifth grade class about the logistics of buying a stock. As he grew older had a variety of small time business ventures including a paper route, a snow cone stand, a snow shoveling business, and sold stamp-coin collections on the weekends.[6] When he was 10 years old he purchased his first stock, one share of Johnson & Johnson (the stock splitthree-for-one and over time tripled his initial investment). At age 12 he was regularly calling his broker to get stock quotes, his reasoning behind buying a share of Johnson & Johnson was the fact that he has used a lot of band-aids (a product of the company) during his earlier years.[6]
Klarman attended Cornell University in Ithaca, New York, and was interested in majoring in mathematics but instead chose to pursue economics.[7] He graduated magna cum laude in economics with a minor in history in 1979.[13] In the summer of his junior year he interned at the Mutual Shares fund and was introduced to Max Heine and Michael Price. After graduating from college he went back to the company to work for 18 months before deciding to go to business school.[7] He went on to attend Harvard Business School where he was a Baker Scholar and was classmates with Jeffrey Immelt, Steve Burke, Stephen Mandel, James Long and Jamie Dimon.
Philip Arthur Fisher
Philip Arthur Fisher (September 8, 1907 – March 11, 2004) was an American stock investor best known as the author of Common Stocks and Uncommon Profits, a guide to investing that has remained in print ever since it was first published in 1958.
Career[edit]
Philip Fisher's career began in 1928 when he dropped out of the newly created Stanford Graduate School of Business(later he would return to be one of only three people ever to teach the investment course)[1] to work as a securities analyst with the Anglo-London Bank in San Francisco. He switched to a stock exchange firm for a short time before starting his own money management company, Fisher & Co., founded in 1931.[2][3] He managed the company's affairs until his retirement in 1999 at the age of 91, and is reported to have made his clients extraordinary investment gains.[4]
Although he began some fifty years before the name Silicon Valley became known, he specialized in innovative companies driven by research and development. He practiced long-term investing, and strove to buy great companies at reasonable prices. He was a very private person, giving few interviews, and was very selective about the clients he took on. He was not well-known to the public until he published his first book in 1958.[5] At this point Fisher's popularity rose dramatically and propelled him to his now legendary status as a pioneer in the field of growth investing.[6] Morningstar has called him "one of the great investors of all time".[3] In Common Stocks and Uncommon Profits, Fisher said that the best time to sell a stock was "almost never". His most famous investment was his purchase of Motorola, a company he bought in 1955 when it was a radio manufacturer, and held it until his death.[7] Phillip is remembered for using and proliferating the "scuttlebutt" or "grape vine" tool, in which he searched fastidiously for information about a company.[8] When you scuttlebutt, you make more informed decisions due a better basis for analysis and valuation.
In the 2018 Berkshire Hathaway annual shareholders meeting, Warren Buffett called Fisher's "Common stocks and uncommon profits" a "very very good book".[9] He further described how using Fisher's "scuttlebutt" technique continues to be a good way to investing, which is still used by Ted and Todd at Berkshire Hathaway. John Train described Warren Buffett as 85% influenced by Benjamin Graham and 15% by Philip Fisher.[10][11]
His son Kenneth L. Fisher also founded an investment firm.
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