Warren Buffett News: Why You Can’t Invest Like Warren Buffett

BERKSHIRE HATHAWAYWhy You Can’t Invest Like Warren Buffett (ABCNews)
No investor is more closely watched and more imitated than Warren Buffett. Millions of investors, mesmerized by this man who has become a legend in his own time, seek to follow in his investing footsteps. They fall deeper into a trance of idol worship with Buffett’s every pithy comment. Dreaming of riches to come, they buy whatever Buffett does. Yet these Buffetteers could no sooner mimic his methods than they could dunk a basketball like LeBron James. The reasons come down to a reality that is eclipsed by the media aura surrounding Buffett and his renown as the Oracle from Omaha.

Warren Buffett Stocks with the Lowest P/E Ratios (Forbes)
Cheapness is a top characteristic Warren Buffett requires in companies he invests in, though they must also be high-quality companies. It makes sense then that his portfolio would contain quite a few low-P/E (price over earnings) companies. The lowest of the low are: General Motors Company (GM), ConocoPhillips (COP), Gannett Co. Inc. (GCI) and General Dynamics Corp. (GD). A low P/E ratio indicates that while a company’s earnings have grown or remained flat, the price has not, for any number of reasons, and may later.

Warren Buffett-Backed Chinese Automaker BYD Said To Cut Pay Amid Slow Sales (Forbes)
BYD, the Chinese auto maker 10% owned by Warren Buffett’s Berkshire Hathaway, is cutting payments to workers between June and September as it struggles with weak sales and profits, Chinese media reported today. The cuts reportedly will involve all of the company’s departments. Combined salaries and bonus payments for affected workers will be reduced by 14%, according to a report in today’s Southern Metropolitan Daily. The company hopes to save up to 240 million yuan, or $38 million, as a result of the move, the daily newspaper said.

Buffett sends message with a thumbnail dipped in ink (BrisbaneTimes)
I WAS bowled over this week by a request from the Mansfield Courier for an interview. We all know towns like Mansfield – salt of the earth Australia. This was a request about the global media landscape. It seems that in the frenzy to proclaim the death of the newspaper, many national commentators are blind to the truth in ”the bush” where most of the money is made and in the ”burbs” where the people live.

Why Carl Icahn Is A Better Value Investor Than Buffett: 5 Oil And Gas Stocks To Drive Returns (SeekingAlpha)
Don’t misconstrue my title: Warren Buffett is a great value investor. My view, however, is that he isn’t the best and his followers have overly discarded the efficient market hypothesis. Moreover, Buffett is so widely cited in financial stock analysis that it is unfortunate how trite his name has become. In my view, Carl Icahn is an investor that we comparatively hear too little about. Based on Forbes research, Buffett may be the richest pure stock investor at a $39B fortune, but Carl Icahn still takes the #4 spot by this measure at a $13B fortune behind George Soros (#2) and John Paulson (#3).

Buffett’s mREIT Entry Will Impact These 6 Stocks (SeekingAlpha)
Warren Buffett’s Berkshire Hathaway (BRK.A) is a step closer to taking ownership of ResCap’s (Residential Capital) loan portfolio. This will make it easier for Berkshire to enter the residential mortgage business and compete with mREITs. Recently, a New York bankruptcy court named Berkshire the lead bidder for ResCap’s loan portfolio. Berkshire will pay $1.44 billion for ResCap’s loans if the court accepts its bid. In this article, I will show how this development could directly and indirectly impact Western Asset Mortgage Capital (WMC), MFA Mortgage Investments (MFA), Anworth Mortgage Asset (ANH), Two Harbors Investment (TWO), Armour Residential REIT (ARR), and Resource Capital Group (RSO).

Warren Buffett’s Fastest Growing Stocks (NASDAQ)
Warren Buffett , chairman and CEO of Berkshire Hathaway (BRK.A)(BRK.B) and top stock picker, has several stocks in his portfolio that have produced solid growth historically . Though Buffett prefers stability to rapid growth, his new portfolio managers, Ted Weschler and Todd Combs, have purchased stock in several more companies characterized by high growth. The fastest-growing Buffett, Weschler and Combs picks are: DirecTV ( DTV ), DaVita Inc. ( DVA ), CVS Caremark Corp ( CVS ) and General Dynamics ( GD ).