> Warren Buffett Blog: January 2015

Thursday, January 29, 2015

Warren Buffett on shares and ownership of companies

Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner.

Wednesday, January 28, 2015

Buy a company because you believe in it

Buy into a company because you want to own it, not because you want the stock to go up. People have been successful investors because they’ve stuck with successful companies. Sooner or later the market mirrors the business.

In 2013 Warren Buffett praised Coca-Cola saying "I'm the kind of guy who likes to bet on sure things. No business has ever failed with happy customers. ... And you're selling happiness. I like wonderful brands. If you take care of a great brand, it's forever." [Warren Buffett has a $17 Billion position in Coca-Cola]

Tuesday, January 27, 2015

Warren Buffett's top 3 success factors

When asked on what made Warren Buffett successful, he replied

Number 1 - Being born in America. 
Number two - Good genes so I’ve lived a long time. 
And 
Number three - Compound interest

Wednesday, January 21, 2015

Warren Buffett Quote on replacing vs repair


"Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks."

Monday, January 19, 2015

Warren Buffett encourages use of Airbnb in Omaha for 2015 shareholder meeting

I think we’re going to be up pretty significantly over last year [for the May 1-3 Berkshire Shareholder Meeting]. We pretty much filled up all the available hotel spaces. Airbnb is going to put a special effort into developing listings in Omaha.

I don’t want them [shareholders] to get discouraged about coming because they’ve checked some hotels and find they’re filled. I’d like to get the maximum numbers” at the meeting.

Wednesday, January 14, 2015

Markets are like a crazy drunk person


You can ignore [the stock market]. You’ve got your choice of thousands of businesses, and the best thing for most people is to buy a cross-section of them.

Every day I get offered through the stock market thousands of businesses, and the prices change every day, and the nice thing about it is that this imaginary person out there, Mr Market, is kind of a drunken psycho.

Some days he gets very enthused and some days he gets very depressed. And when he gets really enthused, if you happen to be trading stocks, you sell to him. And if he gets very depressed, you buy from him.

There’s no moral taint attached to that. When people get scared other people get scared.. Emotions are contagious, and emotions have no business in investing.

Monday, January 12, 2015

Warren Buffett on index investing every month

Investing 

The most important thing to do is just do it. Pay no attention to the headlines in the paper or people on television. Just put aside a little money every month — put it in a very low-cost index fund.

If you do that throughout your working career you’re bound to have substantial capital in the end. Don’t try to time it, don’t try to pick individual stocks, just put X dollars per month away and you’ll live a very comfortable life.


Monday, January 5, 2015

This is the secret to investing

"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."