Warren Buffett News: Amancio Ortega Eclipses Warren Buffett’s Wealth

BERKSHIRE HATHAWAYAmancio Ortega, Zara Founder, Becomes World’s Third-Richest Person, Overtaking Warren Buffett (HuffingtonPost)
Warren Buffett no longer is the third-richest person in the world. Amancio Ortega, the founder of both Zara and Inditex, which owns the Spanish retailer, overtook Buffett as the third-richest person in the world on Tuesday, according to Bloomberg. On Tuesday, Ortega’s net worth rose to $47.4 billion, according to the Bloomberg Billionaires Index, thanks to Inditex’s stock price closing at a record high.

Ritchie Bros. Auctioneers, Inc. Getting Very Oversold (Forbes)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trading on Wednesday, shares of Ritchie Bros. Auctioneers, Inc. (Toronto: RBA) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $18.69 per share.

Buffett going elephant hunting? (Investmentnews)
Berkshire Hathaway Inc. (BRK/A)’s cash swelled in the second quarter to its highest level in a year as Chairman Warren Buffett pared bets on consumer-products stocks. Cash advanced 7.5 percent to $40.7 billion in the three months ended June 30, the Omaha, Nebraska-based company said in an Aug. 3 regulatory filing. Berkshire was a net seller of equities in the quarter as it cut its allocation to companies that make and distribute consumer goods while boosting holdings of financial firms and a group called “commercial, industrial and other.” Individual stocks weren’t listed in the filing.

Ex-Deloitte partner Flanagan pleads guilty to federal insider trading charges (ChicagoBusiness)
Thomas Flanagan, a former vice chairman in the Chicago office of Deloitte LLP whose client list once included Warren Buffett, has pleaded guilty in federal court to insider trading charges tied to improper trades in stocks of large Chicago-based corporate clients whose audits he oversaw. Mr. Flanagan, 64, of Chicago, pleaded guilty to one charge of…

Warren Buffett Is Optimistic About Housing, Railroads (SeekingAlpha)
Warren Buffett’s Berkshire Hathaway (BRK.A) saw its recent profits fall 9% on losses from its derivatives portfolio. However, these derivative losses are unrealized (i.e. he has not sold the position) and are long term positions in equity indexes in US, Europe and Japan with a maturity date of 2018 and later. Buffett, outspoken on the problem with financial derivatives, has stated he will not likely be increasing additional derivative positions due to changes in financial accounting for derivatives.

JIM MELLON INTERVIEW: Britain’s answer to Warren Buffett cracks the wealth code with investing book (ThisIsMoney)
He is a marathon-running polymath with the Midas touch, whose investment funds attract the seriously moneyed. Yet despite being revered by some as Britain’s answer to ‘Sage of Omaha’ Warren Buffett, investor and serial entrepreneur Jim Mellon is modest and unassuming. He chats with wit and candour about most things in life, including his failures. ‘I bear the scars of those poor investments like anyone else,’ he admits. ‘I’m a little impulsive.’ An £11million loss on German real estate bears witness to this, but there have been many others, he reveals.

Book Review: Creating a portfolio like Warren Buffett (IndiaTimes)
Equity has outperformed most other asset classes in the long run. In the short term, however, the stock market can be volatile due to variables like inflation, interest rate, government deficit and exchange rate. …A simpler option is to use Warren Buffett’s stock selection principles, which helped his firm, Berkshire Hathaway, expand at 20.3% CAGR from 1965-2009. Achieving this return for 45 years has made Buffett one of the most successful investors of this century.

Clinton, Buffett help out Vilsack (IndyStar)
In a campaign attracting big money, Christie Vilsack, the Democratic candidate in the 4th Congressional District, is getting help from some well-known out-of-state donors in her bid to oust Republican incumbent Steve King. Former President Bill Clinton and David Axelrod, an adviser to President Barack Obama, each have given Vilsack $2,500. Billionaire investor Warren Buffett and his wife, Susan, of Omaha, have given $3,500 as they support numerous Democratic candidates.

Facebook, Facebook, and More Facebook (Minyanville)
Right after I found this picture graphic showing research ratings on Facebook (FB), See It Market’s Ross Heart and myself were having a friendly Twitter rant (@heartcapital and @alex__salomon) and I wanted to expand on it a bit. Basically, we were agreeing and ranting that while most traditional research firms spend a considerable amount of time and resources covering stocks with ratings and research, it remains a mystery that most Wall Street research works off a “target a higher price” approach; this is in contrast to Warren Buffett, who founded most of his immense fortune with a “buy super duper low” philosophy.