> Warren Buffett Blog: December 2014

Wednesday, December 31, 2014

Monday, December 29, 2014

GM stock price hurting Warren Buffett

General Motors Company (GM) stock is down 17% Year To Date. This is mostly due to multiple automobile recalls due to faults with ignition switches and related lawsuit claims.

Warren Buffett has been among the biggest supporters of General Motors, Berkshire Hathaway Inc. Berkshire owns 40 million shares of the automobile company. 

Others that have been hurt by General Motors’ fall include David Tepper’s Appaloosa Management. Appaloosa owned 14.8 million shares of the company at the end of the third quarter. Kyle Bass owns 5.25 million shares of General Motors through his hedge fund Hayman Capital. 

Monday, December 22, 2014

Warren Buffett on Wells Fargo strong deposit base

The biggest single asset that Wells has is its deposit base. They have a consumer-based, tiny-organization-variety bank that’s just substantial.

Wednesday, December 17, 2014

Buffett adds to investment in Burger King, Tim Hortons

Berkshire Hathaway used a warrant to buy 8.4 million shares of Restaurant Brands International, the parent company for the Burger King and Tim Hortons fast-food chains.

Berkshire paid a penny a share to take a stake of 4.2 percent of the outstanding common stock of Restaurant Brands, the Oakville, Ontario-based fast-food company said today in a regulatory filing. The holding is worth more than $300 million based on today’s closing price in New York.

Buffett got the warrant as part of his agreement to help finance the merger, which was announced in August and completed last week. The contract allowed Berkshire to buy about 1.75 percent of the fully diluted common shares of Restaurant Brands. In addition to the 202 million shares outstanding, the company said today that there are about 265 million units of a partnership that can be exchanged for common stock. 

Buffett’s company also holds $3 billion of preferred shares in Burger King parent company Restaurant Brands and earns 9 percent annual interest on that investment. 

Monday, December 15, 2014

Warren Buffett now second richest in the world

Warren Buffett is now the world’s second-richest person after shares of Berkshire Hathaway reached a record high. Buffett beat Mexico's Carlos Slim after seeing his net worth rise to $ 73 Billion which is around $300 million more than Carlos Slim.

Berkshire has soared 27 per cent this year as the dozens of operating businesses that the 84-year-old chairman bought over the past five decades churned out record profit. Berkshire still has around $60 Billion in cash ready to make more investments.

Tuesday, December 9, 2014

Warren Buffett backs Hillary Clinton with donation

Billionaire investor Warren Buffett has donated $25,000 to Ready for Hillary, a super PAC laying the groundwork for Hillary Clinton’s potential White House bid. 

Mr Buffett, known as the 'Sage of Omaha' has long been an outspoken supporter of Mrs Clinton.  Mr Buffett has also said he could not think of "anyone better qualified" than Mrs Clinton to be president, adding last October at Fortune's Most Powerful Women Summit that he would "bet money" on her winning and that “Hillary is going to win.” He’s also contributed to her past campaigns. But the new donation is the first time he has contributed to a super PAC that can raise or spend unlimited amounts to aid an individual candidate. 

Monday, December 8, 2014

Warren Buffett expanding insurance in Asia

A company owned by Warren Buffett's Berkshire Hathaway received a licence to sell non-life insurance coverage in Singapore as it makes a push into Asia.

The carrier will offer commercial property, casualty, financial lines, marine, energy and construction coverage in the nation, according to a statement yesterday from Berkshire Hathaway Specialty Insurance.

Berkshire has brought in Peter Eastwood from American International Group to help expand sales of insurance coverage to businesses. 

Wednesday, December 3, 2014

Characteristics of a successful investor

"The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd."

Monday, December 1, 2014

Warren Buffett investing in Oil via Weatherford international

Berkshire Hathaway company Lubrizol Corporation announced the purchase of Weatherford International in a deal worth around $750 million. The deal represents a play on North American oil drilling at a sensitive time when the opening of new North American oil wells is in question with the sagging price of oil worldwide.

The acquisition is represents a heavy investment in the North American oil drilling industry by Warren Buffett’s Berkshire Hathaway as the recent rapid drop in oil prices is raising questions on new drilling in the region.