Reasons Why You Shouldn’t Mimic Buffett’s Stock Moves

As the world’s top investor, people are constantly looking to Warren Buffett for investment advice. A quick Google search will reveal literally dozens of articles listing out something Warren Buffett bought or sold and the ever-present question: “Should you?” It can be tempting for amateur investors and Buffett aficionados to want to leap on those stocks in the hopes of riding Buffett’s coattails to wealth. But that’s not always a good idea.

The thing that people tend to forget is that Form 13Fs are only filed once a quarter. That means once every 3 months, Berkshire reports what it did over that term. There are two main problems with piggybacking off of these reports: first, that information is already 3 months old, and second, the forms don’t give a reason why those stocks were bought or sold. Continue reading ‘Reasons Why You Shouldn’t Mimic Buffett’s Stock Moves’ »

Buffett’s Charity Donations Continue to Grow

Recently, the Omaha World-Herald reported that Buffett donated shares worth $12.7 million to seven charitable groups. The seven groups he donated to were not disclosed, but the donations ranged from $5.1 million to $24,100. He also regularly donates to the charities ran by his children and the Bill and Melinda Bill Gates Foundation as well.

However, it could easily be argued that in addition to being the world’s foremost investor, Buffett is also the world’s top philanthropist. The total amount that Buffett has donated exceeds $28 billion, and he vowed to give away the bulk of his fortune via the Giving Pledge in 2010. Additionally, when Buffett donates to charity, he doesn’t give cash—he donates Berkshire Hathaway stock. Continue reading ‘Buffett’s Charity Donations Continue to Grow’ »

5 Personal Finance Tips from Warren Buffett

Warren Buffett is the world’s top investor and with a net worth of more than $74 billion, he is the one of the richest men in the world. His investing genius is renowned around the world and people have spent millions of dollars just for the chance to sit down for lunch with him. So, understandably, people all over the world are looking to Warren Buffett’s advice when it comes to money matters.

While Buffett doesn’t talk specifically about personal finance very often–in fact, his tidbits of wisdom are almost always centered around business, stocks, or just life in general–much of his advice can be applied to helping with personal finance situations. Here five tips we’ve learned from reading and following Warren Buffett: Continue reading ‘5 Personal Finance Tips from Warren Buffett’ »

How Buffett’s 20 Slot Rule Can Help You Be a Better Investor

Warren Buffett is one of the most wildly successful investors in the world. In fact, he’s beaten the S&P 500 pretty consistently in the last 50 years. While it’s not likely that you’ll be able to emulate his success exactly, there are some things that you can do in order to be a better investor. One of those things is called the “20 slot rule.”

Buffett frequently uses the “20 slot rule” when speaking at business colleges to explain how to better view investments, and how to manage your time and attention. As an investor, it can be tempting to leap at every opportunity which presents itself. Buffett, however, doesn’t condone that.  Continue reading ‘How Buffett’s 20 Slot Rule Can Help You Be a Better Investor’ »

10 Surprising Facts About Warren Buffett

Warren Buffett, the Oracle of Omaha, is the world’s foremost investor. There have been dozens of books written about him, and he is probably one of the most quoted financial investors in the world. People flock from all over just to ask him questions at his annual shareholder’s meeting. But, how much do we really know about Buffett? Here are 10 facts that might surprise you about the second richest man in the world:

1. His allowance was a nickel a week when he was a kid

According to an interview on HBO’s Becoming Warren Buffett documentary, Buffett earned a nickel a week from his father when he was growing up. Of course, he quickly supplemented this with additional jobs including selling stamps and delivering papers. Continue reading ‘10 Surprising Facts About Warren Buffett’ »

Does Buffett Think America is Great?

In America, there is a running dialogue that America isn’t as great as it once was. President Trump ran on the “Make America Great Again” slogan, and the theme has continued through his presidency so far. However, some people have argued that America is already great. Warren Buffett, a staunch democrat who supported Hillary Clinton during the 2016 presidential election, is one of those people.

Of course, this isn’t going to be surprising to anyone who knows anything about the Oracle of Omaha. Buffett has long been a proponent of American markets and how the country, despite its ups and downs, is really a pretty great place. He frequently talks about winning the “ovarian lottery” when he was born in America. Continue reading ‘Does Buffett Think America is Great?’ »

The One Thing Warren Buffett Can’t Predict

 

Warren Buffett is often called the “Oracle of Omaha” or the “Sage of Omaha.” While there is some doubt on where the nickname came from, the implication is obvious: Buffett’s success is almost precognitive. In fact, his company has beaten the S&P 500 consistently for around 50 years. There’s no doubt that Buffet is good at what he does.

But, despite his immense success, the one thing that Warren Buffett has openly said that he cannot predict—and indeed would not really want to predict—is market movements. He has highlighted this in multiple interviews and shareholder letters, including in the 2014 letter, where he told shareholders he had no idea where his company would be in a year. Continue reading ‘The One Thing Warren Buffett Can’t Predict’ »

How Much Better Has Buffett Performed than the S&P 500?

Warren Buffett has been lauded as the world’s greatest investor. He seems to have this almost uncanny knack for picking stocks and despite the fact that he asserts no one can predict the stock market, he has a ridiculous record for doing better handpicking stocks than anyone else. In fact, his stock Berkshire Hathaway has beaten the S&P 500 pretty consistently since Buffett took over in 1965.

Berkshire’s success can be chalked up to a number of things, including the company’s constant growth through purchases, the growth due to bolt-on acquisitions, and increased value through subsidies. In the 52 years that Buffett has been at the helm of Berkshire Hathaway, the company’s per-share book value has only declined twice.  Continue reading ‘How Much Better Has Buffett Performed than the S&P 500?’ »

Warren Buffett’s Top 10 Investment Tips

Warren Buffett is the world’s most successful investor. He’s beaten the market consistently for years, so it’s no wonder that people are clamoring for his advice. You can learn a lot by reading his shareholder letters or checking out some of his favorite investing books, and throughout all of them there are some concepts that you’ll see repeated over and over.

Here are 10 of Buffett’s most repeated (and best) investing tips for the average investor: Continue reading ‘Warren Buffett’s Top 10 Investment Tips’ »

What Does Buffett Think Berkshire Stock is Really Worth?

It’s no secret that Buffett actually purchased Berkshire Hathaway out of anger at the former CEO. At the time he started buying shares, they were worth less than $10 per share. When he took control of the company and began to turn it around, shares were valued at less than $30. However, over the decades of his tenure as the chairman of the company, it has grown into one of the world’s largest and most successful companies. Now in 2017, Berkshire Hathaway is the world’s most expensive stock and its Class A stocks go for around $250,000 each.

But what does Buffett think the stocks are actually worth? Well, as it turns out, that question is harder to answer than it might seem. Continue reading ‘What Does Buffett Think Berkshire Stock is Really Worth?’ »