> Warren Buffett Blog

Wednesday, February 22, 2017

Selling all Walmart shares


Warren Buffett's Berkshire Hathaway has sold off $900 million of Walmart stock, choosing instead to invest billions in airlines.

The sale, which leaves Buffett with nearly no shares in Walmart, comes as the US's largest traditional retailer has been rushing to catch up to Amazon and other online competitors.

Monday, February 20, 2017

Warren Buffett selling his Laguna Beach home for a cool $11 million profit

Warren Buffett is ready to sell his home in Laguna Beach, California for at $11 million. He bought the house originally in 1971 for $150,000. 

The home, built in 1936 has three levels and has 3600 square feet space. It was remodeled during Buffett’s ownership, sits on a corner lot and has a view of Emerald Bay. 

Buffett mainly resides in Nebraska and said he had previously spent summers and Christmases at the beach house. Buffett also bought a neighboring property. “That became kind of the annex,” he said. He sold the second property in 2005.

Tuesday, February 14, 2017

Warren Buffett believes in Wearable tech and Richline Group

"Jewelry is a centuries-old business that isn't going anywhere, so it's a safe bet. With the addition of technology, we're simply updating something everyone knows and loves to better fit our modern age." - Warren Buffett


Warren Buffett is embracing wearable technology. The billionaire investor, who has been cautious about investing in the tech sector in the past, is diving into wearables with a new smart jewelry line produced by his company Berkshire Hathaway's jewelry subsidiary Richline Group.

The line, dubbed Ela, will debut this spring, starting with smart wristwear—but don't expect to see a smartwatch from the get-go. Ela has been working on elegantly designed smart bracelets and plans to extend into other product categories, including rings and earrings, in the future. 

Ela devices will connect to both Android and iOS devices and share activity data with Apple's HealthKit and Google Fit, although the specific activity sensors that each device will have are unknown. Ela devices will also receive smartphone notifications, and the user can set gems on the device to glow in different colors and vibrate depending on the alert they're receiving.

Cliff Ulrich, product innovation manager for the Richline Group, told ZDNet that a goal was to create devices that are more than just "prettier step trackers." Ela devices will also have their own mobile app with which users can create "memories" that can be shared with a specific device. Content like photos, voice recordings, and songs can be preloaded to Ela devices so that users who are given the device as a gift can open up the content on their smartphones and relive "special memories" they have with the gifter.

Monday, January 23, 2017

President Trump deserves our respect


America works... I've said this before. It'll work wonderfully under Hillary Clinton, and I think it'll work fine under Donald Trump.

It doesn't work all the time perfectly... but you just look at where we go, milestone after milestone. Never bet against America.

I support any president of the United States. It's very important that the American people coalesce behind the president.

That doesn't mean they can't criticize him or they can't disagree with what he's doing maybe. But we need a country unified... He deserves everybody's respect."

Monday, January 9, 2017

Buffett's airline stocks soaring sky high

Buffett's Berkshire Hathaway disclosed in mid-November 2016 that it bought stakes in American, United Continental and Delta at some point during the third quarter.

On the same day as that filing, Buffett told CNBC that Berkshire also bought shares of Southwest in the fourth quarter. The Oracle of Omaha cited his friendship with Southwest co-founder, former CEO and chairman emeritus Herb Kelleher as a reason.

Since Berkshire's airline bets became public knowledge, shares of all four companies have been gaining in altitude. Delta (DAL) has risen 6%. American (AAL) is up 7%. Southwest (LUV) has soared nearly 13%. And United (UAL) has skyrocketed 14%.

Stocks often get a Buffett bump after Berkshire buys new stakes in them. Buffett is known as a consummate value investor, sifting through the rubble for bargains.

He's only recently begun to dip his toe into higher growth tech stocks -- and even there, Berkshire has limited itself to more mature (i.e. slower growth, gigantic and relatively cheap) tech companies like Apple, IBM and Verizon.

It's also worth noting that airline stocks took a breather last year after a couple of strong years, buffeted by terrorism fears, several high-profile technical glitches that led to major cancellations, rising jet fuel prices and a new round of fare wars sparked by discount carriers like Spirit (SAVE) and JetBlue (JBLU).

The airlines might be slowly getting back on track though. Delta reported on Wednesday that its passenger unit revenue -- a key measure of financial health for airlines -- was flat in December.