How Does Warren Buffett Choose Stocks?

A student of Ben Graham’s method of value investing, Warren Buffett has managed to beat the market more often than not. He is renowned as the world’s top investor and has garnered worldwide attention for his impressive investing skills. He’s also risen to become one of the richest men in the world.

While it’s not realistic to say that anyone could copy his success, researching Buffett and learning his methodologies can greatly help any investor better understand the market and make better choices. So, with that in mind, we’ve looked at several questions that Buffett asks when he is evaluating and choosing a stock or company to purchase: Continue reading ‘How Does Warren Buffett Choose Stocks?’ »

What’s the Difference Between Berkshire Class A and B Stocks?

If you’re looking to invest in Berkshire Hathaway (and, let’s face it, we really can’t blame you), then you’re probably wondering what is the difference between Berkshire Class A and Class B stocks. The short answer is price.

Berkshire Hathaway stocks hold two important records: they are the most expensive stocks on the market, and are the only stocks that are not regularly split. In fact, at the time of writing, Berkshire Class A stocks were valued at around $246,500 per share. Class B stocks, by comparison, were valued at around $164 per share.

But before we can get into explaining why the two stocks have such a different price, we’ll have to look at why there are two stocks to begin with. Continue reading ‘What’s the Difference Between Berkshire Class A and B Stocks?’ »

Buffett’s Shareholder Letter Highlights: 2014

Since Warren Buffett took over the management of Berkshire Hathaway in 1965, he has written an Annual Shareholder Letter outlining the progress of the company, setting goals, and discussing the culture and methodology of Berkshire Hathaway. And, while a good portion of each letter is devoted to a rundown of numbers for Berkshire Hathaway, scattered throughout each article is quite a bit of Buffett’s down-to-earth mentality and some fantastic financial advice.

In this series, I’m going to go through and highlight some of the best letters from 1965 through the present. There won’t really be that much of an order, and we won’t do every year, but inside you’ll find not only an interesting insight into Berkshire Hathaway, but also history and the mind of the Oracle of Omaha himself.

Today, we’re going to take a look at the Shareholder Letter from 2014. But first we’ll get some background on what was going on in Berkshire Hathaway that year. Continue reading ‘Buffett’s Shareholder Letter Highlights: 2014’ »

Berkshire Hathaway to Advertise American Homes in Chinese Markets

Berkshire Hathaway’s real estate brokerage company, Berkshire Hathaway HomeServices, recently announced that it has penned an agreement with Juwai.com to advertise Berkshire Hathaway home to Chinese elite. The website operates on both sides of China’s “great firewall” and will allow Chinese consumers to more easily browse American real estate.

The agreement is the most recent of many moves Berkshire has made towards Chinese market, where Warren Buffett is already something of a pop icon and a rising star. With this arrangement, which is expected to bring Berkshire quite a bit of additional revenue, Berkshire Hathaway HomeServices listings will be available not only in China, but also more than 160 other countries. Continue reading ‘Berkshire Hathaway to Advertise American Homes in Chinese Markets’ »

How Many Times Do You Use Berkshire Brands Each Day?

Berkshire Hathaway is one of the largest and most influential companies in the world. Although your average non-investing savvy person probably hasn’t even heard of Berkshire Hathaway, the truth is that your average American interacts with Berkshire Hathaway products every single day. Most people interact with them multiple times per day, in fact, whether or not they realize it.

While you can check out the ever-expanding list of Berkshire Hathaway companies here, it can be sort of hard to visualize what kind of impact Berkshire Hathaway and Warren Buffett have on your average day. So we’re going to break it down by the different ways that, without even realizing it, you may be using Berkshire products throughout your day. Continue reading ‘How Many Times Do You Use Berkshire Brands Each Day?’ »

4 Traits Of Warren Buffet And Other Top Investors

Warren Buffett is the undoubtedly the world’s top investor but his success is hard to match. He built one of the world’s top businesses from the ground up and has risen to be one of the world’s richest men. He consistently beats the stock market and, in short, is one of the investing geniuses of our age.

Tony Robbins, a professional life coach, recently published a book outlining how to be successful with money. In the volume, he interviewed thew top investors including Warren Buffett, Carl Icahn, Ray Dalio, and John Bogle. What he found was that all four investors shared several things, including these four traits: Continue reading ‘4 Traits Of Warren Buffet And Other Top Investors’ »

Munger Weighs In On Why Berkshire Is So Successful

Berkshire Hathaway is one of the largest conglomerates in he world. It also has the distinction of being the only conglomerate that was built from scratch. In fact, when Buffett took over Berkshire Hathaway, it was a failing textile company. Now, more than 50 years later, Berkshire Hathaway has grown into a $300 billion company.

People have been trying for years to pinpoint down exactly what Buffett did to be so successful, and while there are many theories, including this one, it’s hard to say. However, Charlie Munger, the Vice Chairman of Berkshire Hathaway and longtime friend of Warren Buffett, identified four things that made Berkshire such a successful company: Continue reading ‘Munger Weighs In On Why Berkshire Is So Successful’ »

Where Does Berkshire Make Most of its Money?

Warren Buffett’s Berkshire Hathaway is one of the world’s largest companies. Although its exact value changes frequently due to the market and the economy, the company itself is worth well over $200 billion at last count. But where does all of the money come from?

With the world’s foremost investor at its helm, most people would be inclined to think that Berkshire’s fortune comes from clever investing. And while they aren’t completely wrong, they aren’t completely right either. In fact, the company used to make almost all of its money from its portfolio. Now, however, most of its money comes from owning rather than investing in businesses. Continue reading ‘Where Does Berkshire Make Most of its Money?’ »

IBM Underperforms Again, Loses Buffett Millions

Warren Buffett is having something of a rough week in the stock market. Less than a week after United Airline’s stocks took a tumble, IBM shares are suddenly not looking quite so good either. The Oracle of Omaha lost somewhere in the ballpark of $800 million on Wednesday after IBM’s first quarter results were posted showing less revenue than expected. In response, the stock dropped nearly $10 per share on Wednesday morning.

This most recent quarter loss makes the 20th straight quarter with revenue losses for the computing giant which seems to be struggling with pleasing its clients. Although IBM made a name for itself on hardware, the company has been attempting to break into the cloud computing market recently with mediocre results. Continue reading ‘IBM Underperforms Again, Loses Buffett Millions’ »

Berkshire Sells Wells Fargo Shares to Avoid Fed Regulations

It’s been a rough few months for Buffett stocks with the recent United Airlines fiasco and, before that, the Wells Fargo scandal. Although the United Airlines fiasco is still playing out, the Wells Fargo scandal has pretty much died down and the company is in the process of making amends and rebuilding the company.

While many people jumped ship during both issues, Warren Buffett held tight to his stocks and weathered the storm. Ever the value investor, Buffett runs his investments for the long term and frequently says that he prefers to wait out the market panics, as long as the value is still present. However, now that the buzz has died down, it looks like Berkshire has begun selling back some of its Wells Fargo shares. Continue reading ‘Berkshire Sells Wells Fargo Shares to Avoid Fed Regulations’ »