Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Warren Buffett News: Warren Buffett Is Different From Most Investors

BERKSHIRE HATHAWAYHow Warren Buffett Is Different From Most Investors (SeekingAlpha)
There was an academic article published recently on the investing of Warren Buffett. Afterward, I thought I saw a few articles reflecting on it, but here is the only one I see now: There’s Warren Buffett — and then there’s the rest of us. Buffett is different because he grew as an investor and as a businessman, and usually made the right moves over a 50+ year career. When you don’t have a lot of assets, and few people are doing value investing, you can do amazing things with special situations, and being an activist investor. In 1967, Buffett had control of a textile company named Berkshire Hathaway (BRK.A), when he used the resources of the company to purchase some smallish P&C insurance companies, National Indemnity and National Fire and Marine Insurance.

P/E ratio- what you need to know (DailyMirror)
The price-earnings ratio (P/E) is hands down the most popular ratio among investors. Value investors have long considered the price-earnings ratio a useful metric for evaluating the relative attractiveness of a company’s stock price. Made popular by the late Benjamin Graham, who was dubbed the ‘father of value investing’ as well as Warren Buffett’s mentor, Graham preached the virtues of this financial ratio as one of the quickest and easiest ways to determine if a stock is trading on an investment or speculative basis. When it comes to valuing stocks, the price/earnings ratio is one of the oldest and most frequently used metrics.

Romney makes presidential choice easy (WatertownDailyTimes)
Has choosing the president ever been this easy? Do we want for our president a multimillionaire who is busy investing his wealth oversees and hides the profits in offshore bank accounts in Switzerland, Bermuda and the Cayman Islands? Mitt Romney thinks that all this is OK because it is legal. It might be within the law, but is sure doesn’t pass the smell test. Do we want a president who paid only 13.9 percent income tax in 2010 and thinks that is fair? What a difference between Mr. Romney and billionaire Warren Buffett, who is embarrassed for paying only 15 percent and wants it raised.

How to profit from the post-Olympic spirit (MarketWatch)
With an incredible four billion people tuning in to the London Olympics, watching athletes swim, run, dive, jump and hurdle their way to greatness, London Olympic sponsors will be hoping viewers are inspired to replace their armchairs with exercise bikes. …Few would probably realize that with every tip-off in an NBA basketball game, Warren Buffett’s Berkshire Hathaway BRK.A +0.33% BRK.B +0.28% makes money. That’s because the official Spalding basketball is owned by Russell Brands, a wholly owned subsidiary of Berkshire since 2006.

Oregon’s grade in finance: a solid C (Examiner)
In a recent rating of all 50 states by Barron’s magazine, Oregon ranks 25th. If you’re happy with a C from those who manage your money, then feel free to pat your state legislators and executives on the back. Otherwise, read on. The good news is that Oregon began to address state worker pension promises in 1996. No longer do we guarantee an 8% annual return on all invested pension funds. Even famed investor Warren Buffett projects less, 7.1%. That may not sound like much of a difference, but for one retiree earning a $50,000 annual pension from age 60 to age 90, it represents added state debt of $50,000, and there are over 32,000 state workers.

Billionaire Mandel is bullish on three stocks (MarketWatch)
Two of the most successful Tiger Cubs are Andreas Halvorsen of Viking Global and Stephen Mandel of Lone Pine Capital. Viking Global, between 2005 and 2010, returned a remarkable 119%; Lone Pine manages about $17 billion, and Mandel has become a billionaire based on the strength of his investment prowess ( read more about Mandel and Halvorsen). …Warren Buffett’s Berkshire has a position in Visa as well but it was reduced by 27% over the second quarter (see Warren Buffett’s new bullish bets ).

Poor little rich kids: world’s wealthiest lose billions on stocks (Albawaba)
The 40 richest people on the planet lost a combined $3.7 billion this week as global stocks declined. The biggest loser was Carlos Slim, who dropped $1.7 billion. Shares of the telecommunications mogul’s Mexico City-based America Movil fell 2.2 per cent during the week. …Ortega has been jostling with Berkshire Hathaway chairman Warren Buffett for the title of world’s third-richest man. Ortega bumped Buffett, 81, from the No. 3 spot on the index on August 6, after shares of Inditex surged. Buffett, who is worth $45.8 billion, reclaimed the position August 10.

Why Total Looks Cheap (SeekingAlpha)
Investors know that to generate alpha one must constantly seek out new opportunities and new ways of looking at the same things. Alpha can be created by capitalizing on public information that other investors can’t easily process (think footnotes of a 10-k), building a better mousetrap (think a better valuation model), achieving a better understanding of how the market works (an in-depth understanding of the company and its drivers), or exploiting structural impediments of the market (think cross-methodological work and post-earnings drift). …We think earnings and free cash flow drive the valuations of stocks, and we use a tried-and-true margin of safety concept to determine which firms are undervalued. We embrace Warren Buffett and Benjamin Graham. Our technical and momentum process is also very simple and straightforward-we’re not reading the stars with our technical/momentum process for our next great alpha-generator.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.