> Warren Buffett Blog

Monday, September 18, 2017

Investing VS Speculating

The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money.

But a pin lies in wait for every bubble. 

And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street - a community in which quality control is not prized - will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest.

Monday, September 11, 2017

Buffett on Trump, Apple and Insurance Business

I'm not in the business of attacking any president, nor do I think I should be.

Forty-five presidents of the United States and I lived under a third of them. I bought stocks under 14 of the 15. The first one was Hoover. I was only 2 when he left so I hadn't gotten active at that point. But Roosevelt was next. And I bought stocks under him, even though my dad thought it was the end of the world when he got elected.

Thursday, September 7, 2017

Warren Buffett not optimistic on Bitcoin

Stay away from it [Bitcoin]. It's a mirage basically. It's a method of transmitting money. It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?

I hope bitcoin becomes a better way to do it. But you can replicate it a bunch of different ways. The idea that it [bitcoin] has some huge intrinsic value is just a joke in my view.

Monday, August 28, 2017

BYD to construct monorail in Philippines

BYD the electric car, battery company and is partially owned by Berkshire Hathaway Inc. won its first overseas contract to build a monorail as BYD pushes further into municipal public transportation.

The Shenzhen, China based company will construct a monorail in Iloilo, the Philippines, and expects the first phase of the 20kms (12-mile) system to start operations in 2019, it said in a statement on Wednesday. The company didn’t provide an investment amount.

BYD—already China’s biggest electric-car manufacturer—has supplied battery-powered buses for cities overseas, in markets including the US and Europe. Monorail will represent the next major growth area for BYD given the prospects for light-rail systems as a solution to urban gridlock in China’s smaller cities, which can’t afford to build and maintain expensive underground subways, Chairman Wang Chuanfu said in June last year.

Wednesday, August 23, 2017

Berkshire sells all its GE holdings

According to recent SEC filings, Berkshire Hathaway, has sold off its remaining 10.6 million shares of General Electric in the second quarter of 2017. As of June, Buffett's investment had been worth $315 million.

The timing of the sale was good as those 10.6 million shares would have been worth $46 million less today than three months ago.

2017 has been particularly rough on GE. The stock has cratered 20% since January. In June, CEO Jeff Immelt resigned after 16 years on the job. And the company continues to offload struggling legacy businesses as it tries to stay relevant in the digital age.

Still, Buffett made hay off the investment. He poured $3 billion into GE in 2008 when the company was hit hard by the financial crisis. GE's stock grew about 40% during the time Berkshire held stock in the company. Even better: GE pays a huge dividend, helping pad Buffett's profit.