Warren Buffett News: Chasing Warren Buffett’s Alpha

BERKSHIRE HATHAWAYChasing Warren Buffett’s Alpha (CFAInstitute)
From November 1976 to the end of 2011, Warren Buffett delivered an average annual return of 19% in excess of the Treasury bill rate, as measured by shares of his publicly traded conglomerate, Berkshire Hathaway (BRK.A, BRK.B), versus a 6.1% average excess return for the stock market. In addition, Berkshire’s Sharpe ratio — a measure of return per unit of risk — is higher than all U.S. stocks that have been traded for more than 30 years from 1926 to 2011, as well as all U.S. mutual funds in existence for more than three decades. So how does he do it?

Mary Buffett to be keynote speaker at Omantel forum (TimesOfOman)
Renowned speaker and best-selling author Mary Buffett will be visiting Oman on September 17 to address the corporate customers of Oman Telecommunications Company (Omantel). Buffett, who is also the daughter-in-law of the world’s most successful investor Warren Buffett, will speak about ‘Global Trends and Financial Investment Strategy’ at the Omantel Business Alliance meet. As many as 300 top-level finance professionals, especially chief financial officers, from Oman’s corporate sector are expected to attend the meeting to be held at Shangri-La’s Barr Al Jissa Resort, said Todd Dick, vice-president of Corporate Business Unit of Omantel.

Stocks for the Long Run: Harris vs. the S&P 500 (DailyFinance)
Investing isn’t easy. Even Warren Buffett counsels that most investors should invest in a low-cost index like the S&P 500. That way, “you’ll be buying into a wonderful industry, which in effect is all of American industry,” he says. But there are, of course, companies whose long-term fortunes differ substantially from the index. In this series, we look at how individual stocks have performed against the broad S&P 500. Step on up, Harris Corporation (NYSE:HRS).

10 books to help you invest better (NineMSN)
Warren Buffett’s investing partner, Charlie Munger, once said that he has known “no wise people who didn’t read all the time — none, zero.” In fact he reads so much that his children would laugh, describing him as a “book with a couple of legs sticking out.” …1. One Up On Wall Street by Peter Lynch In this classic, Peter Lynch makes a very persuasive case that the individual investor can do very well by buying great companies for the long term. He even opens the book by saying that “any normal person using the customary three percent of the brain can pick stocks just as well [as], if not better than[,] the average Wall Street analyst.”

Buffetts new bank (NineMSN)
When it comes to Warren Buffett and banks, we’re used to hearing about the unbeatable Wells Fargo. But Buffett has tripled his position in another banking stock — suggesting that there’s more than one mega-bank worth a look. This one has low credit risk, a lot of cash, and plenty of room for international expansion. Get out your chequebooks, bank lovers. …Shortly after the financial crisis, Buffett’s Berkshire Hathaway (NYSE: BRK-A, BRK-B) took positions in a couple of the super banks. His investment in Bank of America was more of a necessity for the beat-up bank, but Buffett also ramped up his position in Wells Fargo (NYSE: WFC), which is now widely considered to be the top bank around.

Sleepy Muni Credit-Default Swap Space May Be Waking Up (BondBuyer)
When Warren Buffett’s Berkshire Hathaway announced recently that it had extracted itself from a big bet insuring a massive amount of municipal debt from default, the move brought attention to a relatively sleepy part of the market. Reflecting a lack of liquidity as much as concern about the potential for defaults, spreads in the $60 billion municipal credit-default swaps market have been wide for some time, market watchers say.

Facebook Share Repurchase Should Make Warren Buffett Proud (Minyanville)
Since it became public at $38 per share on May 18, social networker Facebook Inc (NASDAQ:FB) has lost more than half of its value. Is it a buy at its current level of $19? According to valuation expert and NYU Finance Professor Aswath Damodaran, the answer is “almost.” Back in May, Damodaran valued Facebook at $29, but in late August he reduced his fair value estimate to $23.94. Why the 17.4% valuation haircut? Damodaran now projects slower revenue growth and lower profit margins, and continues to voice concern about Facebook’s “absence of a clear business plan” to monetize its nearly one billion users. I’ve written about Facebook’s inability to come up with an effective way to monetize its mobile users. Nevertheless, Damodaran continues to believe that Facebook has “incredible potential.”

Bochy not ready to demote Sandoval yet (CSNBayarea)
We’ve seen two versions of Bruce Bochy, Giants manager. There is the slow-moving version who stays with veterans, gives players time to work out of slumps and generally makes fewer rash decisions than Warren Buffett. Then there is the ultra-reactionary version who manages the lineup and bullpen like a day trader with an espresso habit.

Roy Exum: Joe Moglia Wins The Chips (Chattanoogan)
You probably missed the fact tiny Coastal Carolina whipped Furman’s football team in a triple overtime on Saturday, squeaking past the Southern Conference giants, 47-45, but there is something fun and wonderful you need to know. Coastal’s first-year coach Joe Moglia has a picture in his office of him playing poker with billionaire investor Warren Buffett and it is aptly inscribed, “To Joe, who always ends up with all the chips.”

Letting go of Big O envy in laid-back Lincoln (Journalstar)
Lincoln has always had Big O envy. And not just because the hilly city to the east can tie its marketing campaign to the bedroom, and we seem to have tied ours to something far less sexy. We envy Omaha for its funky neighborhoods and weekend festivals and hip nightlife. For its abundance of locally owned restaurants and high-end shopping. Its deep pockets and can-do attitude. We’re jealous of a city that has Warren Buffett and Pottery Barn and the College World Series and Whole Foods. And an airport that doesn’t close at suppertime.

Why Buying Treasuries Is Not A Rational Investment (SeekingAlpha)
While there are plenty of definitions of what the purpose of investing may be, for me it is this: the foregoing of consumption today with the belief that the delayed gratification will increase my purchasing power in some future tomorrow. If I lived in 1950, I would find it foolish to put a $10 bill in an envelope to spend 50 years later. Why is that? Because that $10 could go a lot further in 1950 than in 2000. Using Warren Buffett’s hamburger test, you could probably buy 100 hamburgers for $10 in 1950. Today, if we use the McDonald’s Corporation (NYSE:MCD) dollar menu as our baseline, you could get about 10 hamburgers for $10. This was not a good trade-off: an investment that yields 0% in a world of 3-4% inflation will make you substantially poorer over a long period of time.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!