แสดงบทความที่มีป้ายกำกับ warren buffett แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ warren buffett แสดงบทความทั้งหมด
วันจันทร์ที่ 7 มกราคม พ.ศ. 2562
Dow Jones Drops Nearly 700 Points; When Long-Term Apple Holders Should Sell
A big haircut in the quarterly revenue outlook for Apple sent U.S. shares tail-spinning in what has become a common refrain in stocks today for the past few months. The Dow Jones industrial average and the Nasdaq composite acted as co-leaders of the sell-off, each falling 2.8% to 3% and ending practically at the session's low.
The S&P 500, which dropped 6.2% (excluding dividends) in 2018, sank more than 2.4%. Intense buying in defensive areas of the market — think dairy and meat, property REITs, gold mining and telecom services — provided little solace for most investors. The Dow Jones utility average rose nearly 0.1% after falling almost 1.7% on Wednesday.
Dow Jones industrial component Verizon Communications (VZ), formerly on IBD Leaderboard, edged up 0.3%. The stock is trying to reclaim its rising 50-day moving average. Watch for a potential new base to form.
Curiously, small caps performed relatively better but still caved in price. The Russell 2000 fell 1.3%. The S&P SmallCap 600 fell 1.8%, snapping a five-day winning streak.
Volume ran higher vs. the same time Wednesday on both main exchanges, according to early data, signifying heavy institutional profit-taking.
Perhaps institutions are selling shares of multinational corporations much harder, given the clear evidence mounting in China of a growth slowdown. U.S. and China have called a 90-day truce on the trade war and have until March 1 to find a way to end the festering battle on import tariffs.
Apple Leads Dow Jones Lower
Apple gapped down at the open and remained near session lows, falling as much as 10%. The iPhone, iPad, Macbook and digital services giant cut its revenue guidance for the just-ended fiscal first quarter to $84 billion, down from $91 billion. This means Apple's top line is likely to fall nearly 5% on a year-over-year basis.
Such a drop in the top line would be the first since a 9% decline in the fiscal fourth quarter that ended in September 2016.
The Street, before the bombshell news from CEO Tim Cook shared late Wednesday, had been expecting fiscal Q1 profit to rise 20% to $4.65 a share. That comes after adjusted EPS gains of 18%, 24%, 16%, 30%, 40% and 41% in the prior six quarters. The consensus revenue growth forecast for the December-ended holiday quarter prior to the revised forecast came in at $91.49 billion, up 4%.
As the Stock Market Today column had noted frequently in the past, Apple began its impressive run after staging a clean breakout from a first-stage (or early stage) cup with handle on Jan. 6, 2017. The buy point at the time: 118.12. Since that breakout, the megacap tech rallied as much as 97% to its peak of 233.47 on Oct. 3 last year. Along the way, Apple built a series of additional bases, such as the flat base, and gentle pullbacks to the 10-week moving average. These actions presented new buy points along Apple's 21-month price run.
This breakout coincided with a turnaround in Apple's fundamentals. Exactly two years ago, Apple had reported its first quarter of year-over-year gains in both profits (up 2%) and sales (up 3%) in four quarters.
The complexion of Apple's chart action completely changed during the week ended Nov. 2. The stock cleaved through its 10-week moving average near 220.57, falling more than 4% for the week in volume that shot up 51% above its 10-week average. Apple hardly tried to rally back above this key support-and-resistance level; thus, a key IBD sell signal was born.
Apple Stock Strategy Now: Avoid A Full Round Trip Of Profits
Given the strong advance since that breakout, Apple shareholders who bought at the proper breakout point must draw a line in the sand. A solid gain should never be allowed to turn into a loss.
At the day's low of 142.08, Apple has now fallen 39% from a 233.47 peak.
Typical base patterns such as the cup with handle and double bottom generally show a decline of no more than 30% to 33%. But this often is the case in a bull market. With the bears in control, one can expect some corrections in top growth stocks to exceed that range. Breakouts from deep bases do work, but the probabilities are lower.
Warren Buffett lives in a modest house that's worth .001% of his total wealth — here's what it looks like
Located in a quiet neighborhood of Omaha, Nebraska lies the home of billionaire Warren Buffett. He bought the house for $31,500 in 1958 or about $250,000 in today's dollars. It's now worth an estimated $652,619. He calls it the "third-best investment he's ever made." Following is a transcript of the video.
This is the home of billionaire Warren Buffett. Located in a quiet neighborhood of Omaha, Nebraska. He bought the house for $31,500 in 1958, $250,000 in today's dollars. It's now worth an estimated $652,619. He calls it the "third-best investment he's ever made."
It's 6,570 sq. feet and has 5 bedrooms and 2.5 bathrooms. Fences and security cameras guard the property. Why hasn't Buffett moved to a more extravagant home? He told BBC, "I'm happy there. I'd move if I thought I'd be happier someplace else."
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 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: Early life and education
Early life and education[edit]
Greenblatt was born in Great Neck, New York. His family was Jewish.[2] Greenblatt is a graduate of The Wharton School at the University of Pennsylvania, receiving his B.S. in 1979 and M.B.A. in 1980.[3]
Joel Greenblatt
Joel Greenblatt (born December 13, 1957) is an American academic, hedge fund manager, investor, and writer. He is a value investor, and adjunct professor at the Columbia University Graduate School of Business. He is the former chairman of the board of Alliant Techsystems and founder of the New York Securities Auction Corporation. He is also a director at Pzena Investment Management, a high-end value firm.
John C. Bogle: Personal life
Personal life[edit]
Bogle and his wife Eve have six children and are grandparents. They reside in Bryn Mawr, Pennsylvania.
At age 31, Bogle suffered from his first of several heart attacks, and at age 38, he was diagnosed with the rare heart disease arrhythmogenic right ventricular dysplasia. He received a heart transplant in 1996 at age 65.[12][13]
Bogle is a member of the board of trustees at Blair Academy. He is also an advisory board member of the Millstein Center for Corporate Governance and Performance at the Yale School of Management. Bogle received honorary doctorates from Princeton University in 2005 and Villanova University in 2011. Bogle also serves on the board of trustees of the National Constitution Center in Philadelphia, a museum dedicated to the U.S. Constitution. He had previously served as chairman of the board from 1999 through 2007. He was named chairman emeritus in January 2007, when former president George H. W. Bush was named chairman.
Seth Klarman: Wealth and donations
Wealth and donations[edit]
In February 2017, Forbes Magazine listed his personal fortune at US$1.55 billion. In 2015, he was listed as the 15th highest earning hedge fund manager in the world.[1]
Klarman started The Klarman Family Foundation ($255 million in assets as of 2010) which donates to medical causes, Jewish organizations (such as the American Jewish Committee, Boston’s Combined Jewish Philanthropies and Gann Academy), and Israeli causes. Klarman is the chairman of Facing History and Ourselves which develops classroom programs to combat anti-Semitism and bigotry.[24] Klarman also is active with the Israel Project, a pro-Israel advocacy group that collects and provides information on Israel for journalists. He donated $4 million to the organization between 2008 and 2010.[24] He is the key U.S. investor behind The Times of Israel, an online English-language newspaper which reports on Israel, the region and the Jewish world.[34][35]
In 2013, Klarman donated the lead capital to fund the $61 million building at Cornell University named the Seth ’79 and Beth Klarman Humanities Building, more simply known as Klarman Hall.[36] A year later, he donated money to Harvard Business School to construct a "conference center/auditorium and performance space," named Klarman Hall. In an official statement he recalled his time at the school as "an important and ongoing role in my life," later noting it an honor "to able to give back to a school that has given us so much."[37]
Awards[edit]
Klarman has been called a "hedge fund Titan,"[7] and "quiet giant of investing,"[38] for his slow accumulation of fund capital over his career (in 2008, his hedge fund was the 6th largest in the world) and low profile.[7] It was reported by Andrew Ross Sorkin, of The New York Times, that "[Klarman] is the most successful and influential investor you have probably never heard of."[38] His Investopedia entry has him listed as "an enigma in the investing world."[39]
He is sometimes called "the Warren Buffett of his generation,"[3] and the "Oracle of Boston."[5] It has even been speculated that his investment philosophy is so similar to Buffett's that he is considered a dark horse option to assume Berkshire Hathaway in the event of Buffett's death.[40][41] According to an article by The New York Times,Buffett has publicly praised Klarman's investing,[38] and it has been reported that Buffett keeps a copy of his book on his bookshelf.[13]
In 2008, he was inducted into Institutional Investors Alpha's Hedge Fund Manager Hall of Fame along with David Swensen, Louis Bacon, Steven Cohen, Kenneth Griffin, Paul Tudor Jones, George Soros, Michael Steinhardt, Jack Nash, James Simons, Alfred Jones, Leon Levy, Julian Robertson, and Bruce Kovner.[4]
Publications and works
Seth Klarman: Personal life
Personal life[edit]
Klarman typically keeps a low profile, rarely speaking in public or granting interviews.[22] He lives in Chestnut Hill, Massachusetts with his wife, Beth Schultz Klarman, whom he met on a Boston Harbor cruise in 1982; they have three children.[1][23][24][25] His brother, Michael Klarman, is a professor at Harvard Law School
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.
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