> Warren Buffett Blog: April 2017

Monday, April 24, 2017

Warren Buffett's son launches charity to support Women

A new philanthropic organization set up by Warren Buffett's son called the NoVo foundation will devote $90 million over seven years to support young women and girls of color in the United States. Most of Warren Buffett's philanthropy typically goes towards helping the Bill & Melinda Gates Foundation eliminate diseases and supporting the developing world.

Peter Buffett and his wife Jennifer will distribute the $90 million through their foundation. The foundation works to advance adolescent girls' rights, ending violence against them, helping local economies, supporting Indigenous communities, and researching social and emotional learning. They first announced their $90 million commitment last year.

Wednesday, April 19, 2017

Berkshire trims Wells Fargo stock for non-investment reasons

Berkshire has sold some of its stake — one-sixth of one per cent of the bank’s outstanding shares — only in order to end negotiations with the Federal Reserve over how to deal with the fact that Berkshire had become such a large shareholder of the bank.

As Wells bought back its own stock last year, Berkshire’s stake increased to more than 10 per cent, triggering scrutiny under the US Change in Bank Control Act.

“These sales are not being made because of investment or valuation considerations,” Berkshire said in a statement.

Those results will show how well Wells is coping with the fallout from the scandal in which its employees opened thousands of fake bank accounts. The bank’s net income is forecast to decline for a sixth straight quarter, down 4 per cent, in part because of mounting legal expenses and a revamp of its sales practices.

Berkshire has netted $500m from selling the sliver of its Wells stake, which has been one of the longest-held pieces of Mr Buffett’s $122bn stock portfolio. It will still hold just below 10 per cent and still be its largest shareholder.

Tuesday, April 11, 2017

Your best asset is yourself - Invest in you

Investing in yourself is the most important investment you'll ever make in your life. There's no financial investment that'll ever match it, because if you develop more skill more ability, more insight, more capacity, that's what's going to really provide economic freedom. … It's those skill sets that really make that happen.

Monday, April 10, 2017

Warren Buffett hiring tips for companies

Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.

If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But, if each of us hires people who are bigger than we are, we shall become a company of giants.

Thursday, April 6, 2017

What the wise do in the beginning, fools do in the end

A pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street — a community in which quality control is not prized — will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest.

Wednesday, April 5, 2017

Recovering from investing mistakes

The best thing is to learn from other guy’s mistakes. [General George] Patton used to say, “It’s an honor to die for your country; make sure the other guy gets the honor.” 

There are a lot of mistakes that I’ve repeated. The biggest one, the biggest category over time, is being reluctant to pay up a little for a business that I knew was really outstanding.”

Monday, April 3, 2017

Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future

We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.