What is the ‘Buffett Effect’?

Warren Buffett, the chairman of Berkshire Hathaway, is not only the world’s top investor, but also one of the most influential people in the financial world. Wall Street gurus are constantly watching what Buffet does so they can emulate him, hoping for a tiny bit of the same success. Every time that Berkshire Hathaway changes its portfolio around, there is a rush of articles title things like “Buffett Bought (some stock). Should You?”. Analyists go into overdrive trying to interpret the decisions of the Oracle of Omaha, and investors begin looking closer at each of Buffett’s decisions.

In short, in the aftermath of that flurry of emulation, stocks that Buffett buys tend to go up while stocks he sells tend to go down. This is commonly known as the ‘Buffett Effect.’ Continue reading ‘What is the ‘Buffett Effect’?’ »

When Will Berkshire Hathaway Split its Stock?

Warren Buffett heads one of the most successful and largest companies in the country: Berkshire Hathaway. This holding organization has gone through its share of ups and downs financially, but one place where the holdings company has always excelled is in the stock market. In fact, Berkshire Hathaway’s stocks are among the most expensive in the world—

At the time of writing, Berkshire Hathaway stocks are valued at around $250,000 each. To put that in a bit of perspective, the average stock price for an S&P 500 is around $65. Some share cost  only a few dollars per share while companies like Berkshire Hathaway go for six figures each. So why does it cost so much? Well, that’s because unlike other companies, Berkshire Hathaway has never split its stock—or has it? Continue reading ‘When Will Berkshire Hathaway Split its Stock?’ »

What Did Warren Buffett Buy Last Quarter?

Last quarter, Warren Buffett’s Berkshire Hathaway purchased a ton of new stocks. Around $12 billion, in fact, and ever since Buffett told analysts that figure, everyone has been scrambling to try and guess what moves Berkshire has made since the Trump administration took office in November. However, now SEC filings have finally shown where Buffett has placed his bets.

It is worth noting that it is impossible to tell if these investment decisions were made by Buffett himself, or simply by one of his several investors simply by looking at the SEC filings. However, it’s probably safe to assume that much of the changes were approved by Buffett, although he has said on multiple occasions that he doesn’t really monitor his managers that much. Additionally, it is difficult to really

So, without further ado, we’ll take a look at the things Buffett bought and sold in the last quarter of 2016. Continue reading ‘What Did Warren Buffett Buy Last Quarter?’ »

Read Bill and Melinda Gates’ Letter To Warren Buffett

After the death of his wife Susan in 2006, Warren Buffett donated the bulk of his fortune to five different charities around the globe. Among those five charities was the Bill and Melinda Gates foundation, which focuses on world issues including education, world health, and poverty. According to the foundation, the total donated sum was $30 billion.

It has been ten years since Buffett’s tremendous gift, and in December, Buffett wrote to Bill and Melinda Gates and asked them to reflect on their foundation in this year’s annual letter. In his letter, he states that reflection is often the best way to help see a clear way forward, and taking the time to review how to measure success for the foundation and what progress is made will greatly help people better understand the issues and the importance of the work. Continue reading ‘Read Bill and Melinda Gates’ Letter To Warren Buffett’ »

7 Smart Money Habits Learned from Warren Buffett

Warren Buffett is a fascinating man. He took the then-failing company Berkshire Hathaway and within a few decades turned it into a multi-billion dollar holding company. The success of Berkshire Hathaway catapulted Buffett to becoming one of the world’s richest men—second, in fact. At any given time he has around $70 billion to his name, but that vast wealth doesn’t come without some fantastic business and financial sense.

Although it might not seem like it, many of Buffett’s money habits can translate to just about anyone—no matter how rich or poor. While the list of things that could be learned from Warren Buffett is long, here are seven of his smart money habits that everyone could stand to emulate: Continue reading ‘7 Smart Money Habits Learned from Warren Buffett’ »

What does Warren Buffett Eat for Breakfast?

Despite his wealth (which at the time of writing is around the $70 billion mark) Warren Buffett is a simple man. He drinks Cherry Coke, eats potato sticks and dines on McDonalds with frequency. He lives in a modest five bedroom house and drives himself to work every morning—nothing like what you might expect from the second richest man in the world.

In HBO’s recent documentary, “Becoming Warren Buffett” viewers were granted a brief look into the daily life of the Oracle of Omaha. His love of McDonalds breakfast was on full display as he drove his 2014 Cadillac XTS by the McDonalds in Omaha, where he was greeted by the staff by name. Continue reading ‘What does Warren Buffett Eat for Breakfast?’ »

What Makes Warren Buffett Different from Other Billionaires?

Warren Buffett, the Oracle of Omaha, is one of the world’s richest men. Exactly how rich he is changes by the day, as his wealth is tied up in Berkshire Hathaway stock, but usually he’s in the top five. At the time of writing, he’s currently number 2 with more than $70 billion to his name. The only  man richer is his friend Bill Gates.

However, despite his immense wealth, Warren Buffett isn’t your typical billionaire. While there are a dozen things that he does differently, it all boils down to one simple statement: he is not extravagant in the least. There are many things, in fact, that Warren Buffett does differently from other billionaires. Here are a few examples: Continue reading ‘What Makes Warren Buffett Different from Other Billionaires?’ »

4 Public Speaking Lessons That Changed Warren Buffett’s Life

Warren Buffett, the Oracle of Omaha, routinely speaks before thousands of people. He takes part in dozens of interviews and is one of the more quoted billionaires in the country. However, while he seems cool as a cucumber in front of the crowds, once he had an absolutely paralyzing fear of public speaking. In fact, he would get so nervous he often became ill before taking the podium.

“You can’t believe what I was like if I had to give a talk,” Buffett explained in the biography, The Snowball: Warren Buffett and the Business of Life. “I would throw up.” Continue reading ‘4 Public Speaking Lessons That Changed Warren Buffett’s Life’ »

The Most Important Decision You’ll Ever Make According to Buffett

From the time you get up in the morning until your head finally hits the pillow at night, you are bombarded with choices. Some of them are important,  and will carry long-lasting effects into the future. Others, like what you want for breakfast, are slightly less important in the scheme of things. Regardless, we all make countless decisions constantly. However, there is one decision which will rank above all the others: who you are going to marry.

In fact, Warren Buffett names meeting and marrying his first wife, Susan Thompson, as the second most important thing that ever happened to him. Continue reading ‘The Most Important Decision You’ll Ever Make According to Buffett’ »

Is Buffett Betting on Wearables in 2017?

Warren Buffett is not famous for many things including his investing genius. However, there are some decisions, including his distaste for technology, which are equally legendary. Although the investing guru has begun investing in a few tech stocks like IBM and Apple, the idea of technology is still one that leaves Buffett a little wary because he doesn’t understand it well. However, it may be that opinion is beginning to change.

Recently, Berkshire Hathaway’s Richline Group, which creates and markets jewelry around the world, has announced that it will be expanding into the wearables market this spring with the launch of its new Ela product line. Ela stands for “Elegant Lifestyle Accessories” and the smart jewelry will allow users to set custom colors and vibrations to notify them of calls and texts from certain senders. Continue reading ‘Is Buffett Betting on Wearables in 2017?’ »