> Warren Buffett Blog: December 2015

Monday, December 28, 2015

Top Warren Buffett quotes for December 2015

1. "I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."

2. "Nothing sedates rationality like large doses of effortless money."

3. "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over."

Monday, December 21, 2015

Warren Buffett buys into Seritage Growth Properties

Warren Buffett just bought 2 million shares of a company called Seritage Growth Properties (SRG). That works out to an 8% stake and makes him Seritage's second-largest shareholder.

Shares of Seritage surged 17% on the news. Seritage is a real estate investment company that was spun off by struggling retailer Sears (SHLD) earlier this year.

Seritage owns 262 retail locations. Most of them are Sears or Kmart stores. (Sears also owns Kmart.) Seritage then leases the properties back to the Sears and Kmart stores.

The company has a joint venture with shopping mall owners Simon Property Group (SPG), General Growth Properties (GGP) and Macerich (MAC) as well. 

Legally, Seritage is set up as a real estate investment trust, which means it by law has to pay at least 90% of its taxable earnings back to shareholders. The company said last month when it reported earnings that it expected to declare a dividend by the end of the year.

Berkshire Hathaway famously does not pay a dividend.

But it's no secret that Buffett likes receiving them from his many investments. Berkshire Hathaway has often bought preferred stakes in companies -- investments that usually pay higher dividends to their investors than the common stock. 

Buffett may also be making a bet on the U.S. consumer -- although not necessarily Sears and Kmart shoppers. Seritage said last month that 22% of its revenue came from third-party tenants -- i.e. not Sears or Kmart.

That group includes Walmart (WMT), Dick's Sporting Goods (DKS), Nordstrom Rack (JWN) and Lands' End. 

Wednesday, December 16, 2015

Give back to the less fortunate

If you're in the luckiest 1 percent of humanity, you owe it to the rest of humanity to think about the other 99 percent.

Wednesday, December 9, 2015

Your biggest asset is YOURSELF

Invest in as much of yourself as you can. You are your own biggest asset by far. Anything you do to improve your own talents and make yourself more valuable will get paid off in terms of appropriate real purchasing power.

Anything you invest in yourself, you get back ten-fold. Nobody can tax it away; they can't steal it from you.

Wednesday, December 2, 2015

Buffett said to be ready to appear with Hillary Clinton for campaign

Warren Buffett has long been a fan of Democratic presidential front-runner Hillary Clinton. Now the Oracle of Omaha is preparing to appear with her in Omaha, Nebraska.

Buffett will appear with Clinton at a campaign stop in Nebraska this month, a source close to the Clinton campaign confirmed to CNN. 

The event, to be held on December 16, will be Clinton's first campaign stop in Omaha before the Nebraska Caucus on March 5.

According to the source, Buffett and Clinton are expected to talk about income inequality and the need for tax reform.