3 Traits That Make Berkshire’s Reinsurance Business Profitable

Berkshire Hathaway makes a huge slice of its profits from utilities and insurance. While GEICO is one of the company’s most recognizable insurance brands, National Indemnity was actually purchased first. This reinsurance company helps other insurance companies absorb risks and protects them against losses. But, while being a reinsurance company can be extremely lucrative, it is also a rather risky endeavor.

Naturally, Warren Buffett’s reinsurance company is extremely profitable in part due to his leadership and the following three traits which National Indemnity sticks to with a passion: Continue reading ‘3 Traits That Make Berkshire’s Reinsurance Business Profitable’ »

Why Doesn’t Berkshire Meet With Shareholders?

Warren Buffett, fabled investor that he is, has had a lot of success as CEO of Berkshire Hathaway. The Oracle of Omaha took control of the mega-conglomerate back in the 1960’s, and the same shares he purchased for $7.50 ($60 if you factor in inflation) are now worth close to $250,000. Berkshire is a little different than most businesses, though, as it’s considered a holding company and therefore doesn’t offer up its own goods and services.

Because of that, Buffett does some things different with Berkshire than most other businesses— not splitting shares, not paying dividends, and not meeting with shareholders to name a few. As per usual with Buffett, at least he does offer up an explanation for this.  Continue reading ‘Why Doesn’t Berkshire Meet With Shareholders?’ »

HBO’s “Becoming Warren Buffett” Trailer Released

Warren Buffett is one of the most eccentric and interesting businessmen on the planet. He built a Fortune 500 company from absolutely nothing and is currently the second richest man in the world, yet he still lives a ridiculously frugal lifestyle, and has vowed to give away 99% of his wealth prior to death.

While there have been several books documenting Buffett’s memorable quotes, sayings, and even a fantastic biography titled The Snowball: Warren Buffett and the Business of Life, it can be hard to really get a feeling for the real Oracle of Omaha. However, HBO has decided to give it a shot and the company recently released the trailer for its documentary, “Becoming Warren Buffett” last week.

You can watch the full trailer below: Continue reading ‘HBO’s “Becoming Warren Buffett” Trailer Released’ »

More Buffett Advice: Be Like Those You Admire

Warren Buffett, investor extraordinaire and the second wealthiest man in the world, is one of the most quoted people today and freely offers up advice for just about anything. It isn’t unusual for Buffett and his partner at Berkshire, Charlie Munger, to answer questions for anywhere between 6 – 8 hours during their annual shareholder meeting in Omaha, Nebraska.

As with most cases in life, if you take the time to listen up to what Buffett and Munger are saying, there is a lot to be learned. Plus, Buffett’s advice (that doesn’t have a lot of stock market terms) is usually very simplistic and direct, making it easy to understand and implement.  Continue reading ‘More Buffett Advice: Be Like Those You Admire’ »

Is Buffett Hurting America’s Competition?

Buffett has been deemed the most successful of all time by many, and when he shares advice, people tend to listen. He has been in the spotlight since 1965, sharing his thoughts and strategies, and now investors seem to generally focus on high return, low profit, and low risk businesses to invest in.

After having bad luck and small returns from textiles in Berkshire’s beginnings, Buffett changed his focus. To date, half of Berkshire’s portfolio is made up of big names— Coca-Cola, Kraft Heinz, Wells Fargo, and IBM to name a few. Continue reading ‘Is Buffett Hurting America’s Competition?’ »

Most Important Lessons Buffett Learned from “The Intelligent Investor”

One of the best ways to learn how to be like Buffett is to read. Warren Buffett himself reads almost constantly and he has attributed his success to his love of reading. While it’s hard to pin down a specific book that is his absolute favorite, easily the book that he speaks most highly of is The Intelligent Investor by Benjamin Graham. In fact, it’s the No. 1 book on his list of 14 must-read books.

However, we don’t all have time to sit down and read 500 pages a day like Warren Buffett does (I know I certainly don’t). So, if you find yourself wanting to take a shortcut to learning about Warren Buffett’s methods for value investing, then here are some of the most important lessons that the Oracle of Omaha took from The Intelligent Investor: Continue reading ‘Most Important Lessons Buffett Learned from “The Intelligent Investor”’ »

What is Berkshire Hathaway?

Most people have heard of Warren Buffett. As one of the richest men in the world (at the time of writing, he is listed as #2 underneath Bill Gates) and the Chairman of Berkshire Hathaway, he is constantly in the news. Also called the Oracle of Omaha, his company has risen from the depths of near-bankruptcy to being worth around $400 billion in 2016. But, what exactly does Berkshire Hathaway do?

To put it simply, Berkshire Hathaway is what is called a holding company. That means that Berkshire itself doesn’t actually do anything. It doesn’t make any products and it doesn’t offer any services. What Berkshire Hathaway does, to simplify things, is make money by investing in companies, stocks, bonds, and similar things. Continue reading ‘What is Berkshire Hathaway?’ »

Perks of Berkshire’s Good Reputation

Warren Buffett is considered the most successful investor of our time, and his company Berkshire Hathaway is currently ranked as the 4th largest company in the world. While of course Buffett is plenty wise, and has a great approach to investing, Berkshire Hathaway would not be where it is today if Buffett wasn’t so committed to guarding the companies pristine reputation.

“Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless,” Buffett first said in 1991, but has repeated many times since.  Continue reading ‘Perks of Berkshire’s Good Reputation’ »

Warren Buffett’s Steps for Building Good Habits

Although it’s not something that people talk about all that much, Warren Buffett has some of the best (and worst) habits that a person can have. He drinks way too much Cherry Coke and eats fast food frequently, but he’s also cautious with his investing, reads frequently, and lives frugally. But all of his habits—both good and bad—are not just lucky happenstance; they’re intentional.

In order to be successful, you have to not only run your business with intention, but also live with intention. And part of that is having good habits. But how do you build good habits? It’s actually not as hard as you might think. Continue reading ‘Warren Buffett’s Steps for Building Good Habits’ »

More Buffett Advice for Entrepreneurs

Warren Buffett, head of mega-conglomerate Berkshire Hathaway, is famous for his successful investments that made him the second richest man in the world. Lucky for us, billionaire Buffett typically offers up his advice freely.

While Buffett is often considered the most successful investor of our time, if you dig a little deeper than that, he is a businessman. In fact, he often urges people to treat their stocks like they would a business. We’ve already discussed some of Buffett’s great advice for running a business; rules for running one, how women can benefit your company, and even some simple advice to entrepreneurs. Still, though, there is much to be learned from the Oracle of Omaha on how to run a business. Continue reading ‘More Buffett Advice for Entrepreneurs’ »