Warren Buffett News: “Investor Of Today Does Not Profit From Yesterday’s Growth”

BERKSHIRE HATHAWAYBuffett, Zuckerberg Lead Guest List For Sun Valley Event (Bloomberg)
Billionaires Warren Buffett, Bill Gates and Mark Zuckerberg lead the roster of executives invited to Allen & Co.’s annual media conference in Sun Valley, Idaho, next week, according to a guest list obtained by Bloomberg News. Google Inc. (GOOG) Chairman Eric Schmidt, Amazon.com Inc. (AMZN) Chief Executive Officer Jeff Bezos and Apple Inc. (AAPL) CEO Tim Cook are also invited, according to the document, as is News Corp. (NWSA) Chairman and CEO Rupert Murdoch.

Berkshire Buys GM Before Plunge As Backups Pick Stocks (Bloomberg)
Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) acquired its largest stake in General Motors Co. (GM) before the automaker slumped 16 percent, as the billionaire chairman hands more responsibility to deputy stock pickers. Berkshire accumulated about 8.47 million shares of GM through Feb. 3 at an average price of $24.35, according to National Association of Insurance Commissioners data compiled by Bloomberg. The automaker closed at $20.54 yesterday in New York. Omaha, Nebraska-based Berkshire’s full stake was reported in a separate regulatory filing in May that didn’t disclose the purchase price or date.

Guru strategy portfolio on course (TheGlobeAndMail)
In January, we ran a screen combining the methods of legendary stock pickers Warren Buffett and Peter Lynch. Our thinking was that, given the success they achieved on their own, putting their brains together would produce some stellar results. Let’s check in on the portfolio to see whether we were right. …Specifically, we searched for stocks that met the criteria of both the “P/E Growth Investor” screen, which is based on Mr. Lynch’s strategy, and the “Patient Investor” screen, which seeks to emulate the stock-picking methods of Mr. Buffett.

Railroads Appeal Class Certification In Price-Fixing Suit (Bloomberg)
Four U.S. railroad companies appealed a ruling that turned a price-fixing lawsuit against them into a class action of as many as 30,000 shippers, arguing it could unfairly push them into settlements. Union Pacific Corp. (UNP), the largest U.S. carrier, CSX Corp. (CSX); the third largest, Norfolk Southern Corp. (NSC); and Burlington Northern Santa Fe, a unit of Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), today asked the U.S. Court of Appeals in Washington to reverse the June 21 ruling, saying it exposes the companies to $10 billion or more in potential damages.

Why Warren Buffett Keeps Adding To His Wells Fargo Investment (BusinessInsider)
In its annual report for 2011, Berkshire Hathaway (BRK.A) (BRK.B) reported common stock investments in eleven companies that each had a market value exceeding $1 billion. However, there has been only one of these companies that Warren Buffett has been adding to every year since 2005. That company is Wells Fargo (WFC). Berkshire further added to its stake in Wells Fargo during the first quarter of 2012.

Senator Durbin asked Warren Buffett if he used offshore bank accounts (DemocraticUnderground)
“I asked Warren Buffet in a meeting we had recently, ‘Have you ever had a Swiss bank account?’ He said, ‘No, there are plenty of good banks in the United States,’” Durbin said. “So I started asking people: ‘Why do you have Swiss bank account?’ One, you believe the Swiss Franc is a stronger currency than the United States dollar. And that is apparently the decision the Romney family made during the Bush presidency. And secondly, you want to conceal something. You want to hide something. Why would you have a Swiss bank account instead of one in the United States? I would like to … ask the press to really press some of these questions, the obvious questions. When is the last time a presidential candidate for the United States had a Swiss bank account? I think the answer is never.”

Stocks for the Long Run: PPG Industries 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 members of the S&P 500 have performed compared with the index itself.

3 Analyst-Backed Defense Companies With +25% Long-Term Growth (SeekingAlpha)
One of my favorite Warren Buffett quotes is “the investor of today does not profit from yesterday’s growth.” While there’s plenty of money to be made on companies with long and storied histories, those with strong growth prospects in the coming years are more likely to provide investors with truly exceptional returns. One way to analyze a company’s future is through its Forward EPS Long Term Growth, which is essentially a consensus estimate of the company’s expected annual growth rate over the next three to five years.

It’s time to short newspaper stocks (MSN)
Last week I had lunch with a fellow who’s been a journalist for a very long time. He knows the business, he knows everyone in the business and he knows the dirty secrets of the business. He thinks Warren Buffett was crazy to buy Media General (MEG 0.00%). He also thinks, as I do, that newspapers are toast and you’d be crazy to be buying those stocks right now. He believes two primary factors are behind plummeting circulation. The first is the plethora of news offered for free all over the Internet — newspapers don’t offer anything unique or original. If you want news, you pull up Google (GOOG 0.00%) News, and you get the same content. There are no great writers at the newspapers anymore, so why bother? Substantive analysis is in the blogosphere now.

Pulse Seismic: A Protected Play On Natural Gas (SeekingAlpha)
As investors develop throughout their careers, they invariably develop a certain investing style; certain characteristics they look for in companies before they invest. Warren Buffett prefers companies with strong free cash flow, low debt and simple business models. Bill Ackman prefers to invest in companies where he can accumulate a large block of shares and through doing so influence company management. It pays to have a certain style due to the avalanche of information currently available in the stock market; by developing an investment style and staying within your circle of competence, the average investor is able to filter out much of the noise of Wall Street and find successful investment opportunities.

Big Coal’s Hard Road to China (BusinessWeek)
Mike Seely, a third-generation mint farmer in the Pacific Northwest, says the fear of coal dust wakes him up in the middle of the night. Coal companies, which are suffering from a steep drop in demand in the U.S., see their salvation in China. To ship coal from the mines of Wyoming’s Powder River Basin to Asia, the mining companies are backing a half-dozen proposed coal ports in Washington state and Oregon. Among their allies are BNSF Railway, owned by Warren Buffett’s Berkshire Hathaway (BRK/A), and Goldman Sachs (GS), which is an investor in a company building one of the ports. If all the ports were built, analysts estimate that the mining companies could sell 146 million tons worth at least $1.3 billion annually to the Chinese.

Bombardier’s true test will be in commercial aviation (CanadianBusiness)
Squint your eyes and you can almost see things looking up for Bombardier. As the chief beneficiary of the largest private order of business jets in history, the Montreal-based transportation giant and perennial stock market underperformer earned a much-needed lift. Placed in June by NetJets, which is owned by Warren Buffett’s Berkshire Hathaway, the order for 425 jets from Bombardier and competitor Cessna could mean an extra $9.6-billion in revenue for Bombardier alone over the life of the contract.

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

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

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

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

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!