> Warren Buffett Blog: August 2015

Monday, August 31, 2015

Warren Buffett buys Phillips 66 oil refiner stock

Warren Buffett's Berkshire Hathaway Inc has invested $4.48 billion to acquire 57.98 million shares or roughly 10.8 per cent stake in oil refiner Phillips 66, hoping to gain from current low prices of oil company stocks.

Berkshire is reinvesting in the Houston-based company, after divesting nearly two-thirds of its stake in February 2014 by swapping $1.35 billion shares for a chemicals business acquired by its Lubrizol unit.

Berkshire revealed the acquisition of roughly 10.8 per cent in Phillips 66 in a filing with the US Securities and Exchange Commission. 

Phillips 66's share price has dropped by less than 1 per cent while crude oil prices have fallen by more than half. The company's shares closed at $77.23 on Friday.

Berkshire once held a large stake in the Houston-based company, but shed nearly two-thirds of it in February 2014 when it swapped $1.35 billion of shares for a chemicals business that it folded into its Lubrizol unit.

Crude oil prices have since fallen by more than half, though Phillips 66's share price has dropped by less than 1 percent.

Wednesday, August 26, 2015

Buffett quote on buying at a discount

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.

Warren Buffett supports Hillary Clinton for President

Monday, August 24, 2015

We will have recessions from time to time

"In the short term, the market is a popularity contest. In the long term, the market is a weighing machine." - Warren Buffett

Monday, August 17, 2015

Warren Buffett buys Precision Castparts - Interview on Fox Business

According to Warren Buffett, Precision Castparts is a company that makes very Important Parts for very important machines.

Warren Buffett has targeted and acquired his latest elephant – the term he often uses to describe companies that are worth billions of dollars. Buffett’s investment company, Berkshire Hathaway, has announced that it will agree to acquire the metal parts manufacturing company, Precision Castparts Corporation, in a deal valued at $37.2bn (£24bn) including debt.

Wednesday, August 12, 2015

Warren Buffett on being a nice man or nice woman

Be a nice person. It’s so simple that it’s almost too obvious to notice. Look around at the people you like. Isn’t it a logical assumption that if you like traits in other people, then other people would like you if you developed those same traits.

Monday, August 10, 2015

Warren Buffett on Donald Trump chances for Republican nominee

Warren Buffett said today that Donald Trump has a solid base of support in the race for the Republican presidential nomination that seems unshakable by the real estate mogul's over-the-top comments.

Trump will have a block of delegates when the convention arrives, but with the huge field of GOP candidates, it's possible no one will have a majority, Buffett told CNBC's "Squawk Box" in a wide-ranging interview.

"I wouldn't be surprised if [Donald Trump] maintained a quite a solid base for some time," Buffett said—adding that he won't run out of money.

Wednesday, August 5, 2015

More info on BYD the Chinese auto company backed by Warren Buffett

Warren Buffett, Chairman and CEO of Berkshire Hathaway, owns a substantial share of BYD, China’s most successful electric car firm. BYD isn’t anything like Youxai, the copycat that emerged last week. It’s a car firm with its own idea about what an EV should be and who should buy it.
Hybrids still work for BYD

BYD makes most of its sales in China, and its most successful car make a pure EV that compares to the Tesla Motors Model S. Instead the firm makes the Qin, a plugin hybrid that uses its power pack for short trips and relies on petrol for longer journeys.

Tesla Motors had problems selling the Model S in China because of a lack of charging infrastructure. A focus on hybrids, at least in the short term, has allowed BYD to avoid that problem. The firm has sold a total of 31,366 units of the Qin in China through June 2015.

The battery in the Qin is nothing on the Tesla Motors Model S. The power cell comes in at just 13 kWh, five times smaller than the lowest option on the Model S. It can’t compete on power either. The car goes from 0-60 in 5.9 seconds, a lot slower than the 2.8 second charge that Ludicrous mode on the Model S will allow when it arrives in the coming weeks.

Direct comparisons don’t flatter the Qin, but the car’s real power is in its price tag and its appeal to those who live in a country with poor charging systems. The BYD Qin costs around $31,000. A large subsidy from the Chinese government brings that cost down to just $25,400.

The Qin is facing the same market segment as the Tesla Motors Model 3, a car that won’t be released until 2017. Just because it’s a hybrid doesn’t mean that it shouldn’t be taken seriously. The Chinese government regards it as a new-energy vehicle, and Warren Buffett thinks the car is worth backing.