> Warren Buffett Blog: January 2014

Wednesday, January 29, 2014

Why people respect Warren Buffett so much

Investors love consistency. That's not just the case with stocks and companies, but with money managers, too.

Warren Buffett's big claim to fame is his long-term track record. Buffett has been in the investing game a very long time and has solid long-term performance to show for it. Shares of Berkshire Hathaway's class B shares are up more than 400% since the beginning of 1997, handily topping the nearly 150% increase of the Standard & Poor's 500 since that time (excluding dividends).

Investors are also attracted by Buffett's simple stock selection guide, based on studying the fundamentals of companies. Buffett's annual reports to shareholders have become must reads for investors.

Via - http://www.usatoday.com/story/money/columnist/krantz/2014/01/25/warren-buffett-legend-berkshire/4329003/

Monday, January 27, 2014

Warren Buffett asked for job by Tracy Britt Cool

Tracy Britt Cool was finishing Harvard Business School when she wrote to Warren Buffett to ask for a job. Less than five years later, she’s among Buffett’s top aides at Berkshire Hathaway (BRK/A), where she oversees subsidiaries with more than $4 billion in annual sales and more than 10,000 workers.

Tracy  Cool (Incase you were wondering, Yes thats her real name!!!)

Thursday, January 23, 2014

Long term stock market returns will be positive

“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497."

Wednesday, January 22, 2014

Warren Buffett: leverage can lead to zero

When leverage works, it magnifies your gains. Your spouse thinks you're clever, and your neighbors get envious. 

But leverage is addictive. Once having profited from its wonders, very few people retreat to more conservative practices. And as we all learned in third grade — and some relearned in 2008 — any series of positive numbers, however impressive the numbers may be, evaporates when multiplied by a single zero. 

History tells us that leverage all too often produces zeroes, even when it is employed by very smart people.

Monday, January 20, 2014

BYD Chinese cars could be coming to USA

BYD Auto is a Chinese automaker that is partially owned by Warren Buffett's Berkshire Hathaway . For several years now, BYD has been talking optimistically about its plans to export Chinese-made cars to the United States. Now, the company is saying that it will begin offering its cars to Americans by the end of 2015.

Thursday, January 16, 2014

Warren Buffett on Benjamin Graham value stocks

Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.

Tuesday, January 14, 2014

Warren Buffett talks about newspapers

If you want to know what’s going on in your town — whether the news is about the mayor or taxes or high school football — there is no substitute for a local newspaper that is doing its job. A reader’s eyes may glaze over after they take in a couple of paragraphs about Canadian tariffs or political developments in Pakistan; a story about the reader himself or his neighbors will be read to the end. Wherever there is a pervasive sense of community, a paper that serves the special informational needs of that community will remain indispensable to a significant portion of its residents.

Monday, January 13, 2014

Less is more in Investing

Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing. He lost a bundle in the South Sea Bubble, explaining later, ‘I can calculate the movement of the stars, but not the madness of men.’ 

If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.” - Warren Buffett Quote

Friday, January 10, 2014

Warren Buffett quote on how to be rich

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. - Warren Buffett 

Wednesday, January 8, 2014

Monday, January 6, 2014

Warren Buffett offered students $100,000 each

In a speech to students at Columbia Business School, the legendary investor offered the students money by saying, "Right now, I would pay a hundred-thousand dollars for 10 percent of the future earnings of any of you. So, if anyone wants to see me after this is over. If that's true, you're a million dollar asset right now, right? If ten percent of you is worth a hundred-thousand?

Then he explains the importance of good communication skills and talking effectively. And raises his offer to $150,000 per student by saying,  "If you improve your value 50 percent by having better communication skills, it's another 500-thousand dollars in terms of capital value. See me after the class and I'll pay you 150-thousand."

Sunday, January 5, 2014

Quote from Buffett

Friday, January 3, 2014

Buffett advice for women

Warren Buffett says young women should seek good mentors to propel their career.

"These [mentoring] relationships all just evolve. I never set out to become a mentor … It’s amazing … how the person that really wants to do a terrific job just jumps out. There aren’t that many. You will be perceived as exceptional and as a worthy person for a superior to spend some extra time with if you just do something extra all the time. It seems elementary, but it’s true."

Wednesday, January 1, 2014

Warren Buffett on Dale Carnegie and public speaking

While getting his MBA from Columbia University, Buffett says he was “terrified of public speaking.” causing him to withdraw from a Dale Carnegie class.

But later  he saw the ad for the course again and decided to give himself a second chance.

“I became associated with the 30 other people in the class. We couldn’t stand up in front of a group and say our own name. I mean it was — we were — it was pathetic. But that class changed my life in a big way.”