Anyone with even the slightest interest in the markets is now fully aware of the recent turbulence in the both the Canadian and American markets. Both the housing and financial markets have been in a virtual free fall for most of 2008. The analysts and newscasts have also switched from optimistic to doom and gloom. Consumer confidence is falling and the general feeling about the markets and housing is now very negative. On top of all that it looks like inflation along with interest rates may start to rise. All in all it’s not really a pretty picture. Given the dismal outlook on the economy what’s an investor to do? That's a great question that I certainly don’t have the answer to so...I’ll defer to my response to an investor who’s been here before.
WARREN BUFFET
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
“Our favourite holding period is forever.”
“Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years”
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market”
“A public-opinion poll is no substitute for thought.”
“Lethargy, bordering on sloth should remain the cornerstone of an investment style.”
Keeping those quotes in mind tomorrow I'll be posting about a name that I'm planning to add to my portfolio.
Showing posts with label Buffet. Show all posts
Showing posts with label Buffet. Show all posts
Monday, July 21, 2008
Monday, January 21, 2008
Warren Buffet’s Holdings as of September 30, 2007
As Warren Buffet is arguably the worlds most successful investor I think it’s worth the time to periodically check his holdings to see where he’s deployed his capital. The below chart lists his holdings as of September 30, 2007. Although, this information is around 4 months old Warren Buffet is a very long term investor and has been quoted as saying “Our favourite holding period is forever” as such I don’t think the composition of his portfolio would have changed in any significant way since September.
Wednesday, January 9, 2008
About Warren Buffet
I don’t think there is anyone out there who doesn’t know who Warren Buffet is however, just in case I’m wrong I’ll give you a quick bio with a few of the lesser known facts.
- Born in 1930, Nebraska, Omaha
- Arguably the world’s most successful investor.
- 2nd richest man on the planet with an estimated net worth of over $52 billion.
- At 11 he bought his first stock. He purchases 6 shares of Cities Service preferred stock [3 shares for himself, 3 for his sister, Doris]
- At 13 he filed his first income tax return, deducting his bicycle as a work expense for $35.
- Received a Bachelor of Arts/Science from the University of Nebraska Lincoln, Science
- Was rejected from Harvard grad school for “being too young”
- Received a Masters of Science from Columbia where he studied under his mentor and investing legend Benjamin Graham.
- Bought control of textile firm Berkshire Hathaway 1965. Today Berkshire Hathaway is a huge holding company that owns controlling interests in a multitude of stocks.
- If you had invested $10,000 (U.S.) in Berkshire Hathaway when Warren Buffet took control in 1965 you would have more than $50-million today. Had you invested the same amount in the S&P 500 index during the same period you would have just under $500,000.
Click here if you would like more complete bio.
- Born in 1930, Nebraska, Omaha
- Arguably the world’s most successful investor.
- 2nd richest man on the planet with an estimated net worth of over $52 billion.
- At 11 he bought his first stock. He purchases 6 shares of Cities Service preferred stock [3 shares for himself, 3 for his sister, Doris]
- At 13 he filed his first income tax return, deducting his bicycle as a work expense for $35.
- Received a Bachelor of Arts/Science from the University of Nebraska Lincoln, Science
- Was rejected from Harvard grad school for “being too young”
- Received a Masters of Science from Columbia where he studied under his mentor and investing legend Benjamin Graham.
- Bought control of textile firm Berkshire Hathaway 1965. Today Berkshire Hathaway is a huge holding company that owns controlling interests in a multitude of stocks.
- If you had invested $10,000 (U.S.) in Berkshire Hathaway when Warren Buffet took control in 1965 you would have more than $50-million today. Had you invested the same amount in the S&P 500 index during the same period you would have just under $500,000.
Click here if you would like more complete bio.
Sunday, December 30, 2007
Favorite Quotes from Warren Buffet
I thought I would use my final post of the year to share a few of my favorite quotes from the world's most successful investor, Warren Buffet.
“Wide diversification is only required when investors do not understand what they are doing.”
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
“We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'”
“Time is the friend of the wonderful company, the enemy of the mediocre.”
“The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”
“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
“Our favourite holding period is forever.”
“Only when the tide goes out do you discover who's been swimming naked”
“Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years”
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
“If past history was all there was to the game, the richest people would be librarians.”
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market”
“A public-opinion poll is no substitute for thought.”
“Lethargy, bordering on sloth should remain the cornerstone of an investment style.”
“Wide diversification is only required when investors do not understand what they are doing.”
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
“We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'”
“Time is the friend of the wonderful company, the enemy of the mediocre.”
“The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”
“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
“Our favourite holding period is forever.”
“Only when the tide goes out do you discover who's been swimming naked”
“Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years”
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
“If past history was all there was to the game, the richest people would be librarians.”
“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market”
“A public-opinion poll is no substitute for thought.”
“Lethargy, bordering on sloth should remain the cornerstone of an investment style.”
Tuesday, October 30, 2007
U.S Housing
Ok so Buffet and many other deep value investors are starting to re-enter the housing market and some of you want to go against the herd and follow Buffets lead (and why wouldn’t you Buffet is the most successful investor of all time)...but which housing companies are going to survive? Which are going to fail? Which are going to thrive? There are some great companies out there that are certainly going to survive ie- HOME DEPOT, LOWES etc…However, are those companies going to thrive? What about builders? Which ones are going to continue to thrive? If you’re like everyone else out there you don’t know the answer to those questions (and neither do I). However, if you’re confident in the sector but not necessarily in the individual names of the sector you might want to check out the SPDR Homebuilders ETF.
“The SPDR Homebuilders ETF seeks to replicate as closely as possible, before expenses, the performance of an index derived from the homebuilding segment of a U.S. total market composite index. The Fund uses a passive management strategy designed to track the total return performance of the S&P Homebuilders Select Industry Index (the "Homebuilders Index" or the "Index"). The Homebuilders Index represents the homebuilding sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks regularly traded on the NYSE, American Stock Exchange, NASDAQ National Market and NASDAQ Small Cap exchanges (except Berkshire Hathaway). The Homebuilders Index is an equal weighted market cap index.”
The above description was taken from the American Stock Exchange
Year to date XHB is has already fallen 42.56%. Here are the top 10 holdings.
Home Depot - 4.44%
Lowes - 4.33%
Sherwin Williams - 4.75%
Mohawk Inds Inc - 4.99%
D R Horton Inc - 4.45%
Pulte Homes Inc - 4.62%
Toll Brothers Inc - 5.38%
Leggett & Platt Inc - 4.73%
Lennar Corp - 4.68%
It’s currently trading at almost exactly it’s net asset value.
(Disclaimer: As always please do your own research before making any purchases.)
“The SPDR Homebuilders ETF seeks to replicate as closely as possible, before expenses, the performance of an index derived from the homebuilding segment of a U.S. total market composite index. The Fund uses a passive management strategy designed to track the total return performance of the S&P Homebuilders Select Industry Index (the "Homebuilders Index" or the "Index"). The Homebuilders Index represents the homebuilding sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks regularly traded on the NYSE, American Stock Exchange, NASDAQ National Market and NASDAQ Small Cap exchanges (except Berkshire Hathaway). The Homebuilders Index is an equal weighted market cap index.”
The above description was taken from the American Stock Exchange
Year to date XHB is has already fallen 42.56%. Here are the top 10 holdings.
Home Depot - 4.44%
Lowes - 4.33%
Sherwin Williams - 4.75%
Mohawk Inds Inc - 4.99%
D R Horton Inc - 4.45%
Pulte Homes Inc - 4.62%
Toll Brothers Inc - 5.38%
Leggett & Platt Inc - 4.73%
Lennar Corp - 4.68%
It’s currently trading at almost exactly it’s net asset value.
(Disclaimer: As always please do your own research before making any purchases.)
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