> Warren Buffett Blog: 2019

Tuesday, December 24, 2019

Berkshire Hathaway attempted to buy Tech Data Corporation

Warren Buffett's Berkshire Hathaway attempted to buy Tech Data Corporation in a thwarted $5 billion deal after being outbid by Apollo.

Monday, September 9, 2019

Warren Buffett full interview on Healthcare, Stock Buybacks, Costco, Life Advice, Business School and MORE

Click here if the above video does not play

Time stamp and topics discussed

00:05 Why the US economy is slowly down
1:00 Negative interest rates, Economic Variables
4:00 How much cash an ordinary investor should have
5:50 How closely should you follow stocks?
8:20 Buffett on stock buybacks 
10:30 Bernie Sanders and problem with stock buybacks
13:15 What characteristics do you look for in a president?
17:30: Was buying Kraft Heinz a mistake?
18:30 Why people like specific brands like Coca Cola
21:00 Why Hasn’t Warren Buffett bought Amazon stock
22:00 How do you recognize when a trend is over? (Newspapers)
24:00 Should we reduce the Federal debt?
25:15 Should we adjust our tax policy and the minimum wage? (Earned Income Credit)
29:00 Warren Buffett and his new healthcare initiative
31:07 Warren Buffett’s relationship with Todd Combs
35:30 Is the government over focused on drug prices?
36:40: Buying a stake in a company vs. company takeovers 
39:50 On buying insurance companies
41:10 Warren Buffett on buying the New York Times
42:30 Warren Buffett investing in General Electric (GE) a good decision?
46:20 What are the costs of a tax cut?
47:25 Warren on his kids and the future of Berkshire Hathaway 
50:00 Why Warren Buffett doesn’t read or pay attention to financial statements/news
51:05 The 5 most important things to Berkshire Hathaway shareholders
52:00 Why Costco is like Berkshire Hathaway
53:45: Warren Buffett on investing in JPMorgan Chase and Jamie Dimon
54:15 Warren Buffett on his surprise interest rates have remained so slow for so long
55:30 Does Climate Change change your investment strategy or insurance policies?
57:50 The risk of cyber attacks and an increasingly technologically driven world
59:38 Warren Buffett’s opinion on Elon Musk
1:00:50 Warren Buffett on investing in China
1:01:30 Is Donald Trump right about the US/China trade war?
1:04:00 Is Conflict between the US and China inevitable?
1:05:30 Would Buffett make a large acquisition in China?
1:07:30 Is the the US trade deficit a problem?
1:09:00 Is China’s slowly economic growth a concern?
1:11:20 How Warren defines truth success. 
1:12:15:  The importance of learning to communicate better
1:13:30 Warren Buffett’s life advice
1:14:30 Best investment advice
1:15:30 Warren Buffett’s morning routine
1:16:40 Is business school still worth it?
1:18:00 Buffett’s favorite song, book, and movie

Monday, August 19, 2019

Bank stocks fare better when the economy is growing strongly, companies and individuals are taking out more loans, and interest rates are high.

Berkshire Hathaway has been expanding its position in banks over the past year. It is now among the five biggest shareholders in Bank of America, JPMorgan Chase, Wells Fargo, Goldman Sachs, U.S. Bancorp and Bank of New York. Its latest disclosure of its holdings showed that the firm had added to its positions in some of those companies in the Q2 of 2019.

Monday, August 12, 2019

Buffett's BYD China investment could fall victim to the US China trade war

US politicians could soon pass new laws that would hurt one of Warren Buffett's investment. The law would prohibit public transit agencies from using Federal Funds to buy railcars or buses linked to the Chinese government. 

Many years ago Berkshire invested $232 Million into BYD, a Chinese electric car company.  In the past decade, BYD has grown into China's largest manufacturer of electric vehicles, including buses, where it has a significant business in the U.S. that employs about 800 workers at a plant in Lancaster, California. BYD has sold nearly 350 electric buses to communities in 14 U.S. states.

BYD has also been a major winner for Buffett, at least until recently. At the end of 2016, Berkshire's 8% stake in BYD was worth nearly $2 billion, making it Buffett's most valuable investment outside of the U.S., although still just a slice of Berkshire's $200 billion investment portfolio. 

Shares of the electric vehicle maker have dropped lately, however, falling to nearly $6.50 from a high of $10.50 back in late 2017, in part because tensions over trade and fears about the Chinese economy but also because of a decline in public subsidies for electric vehicles around the world. Buffett's stake was recently valued at $1.4 billion. 

Monday, July 22, 2019

Own good companies or an Index Fund

Pick strong competitive companies and don't trade them frequently

The money is made in investments by investing and by owning good companies for long periods of time. 

If you cant pick good companies, alternatively you could buy an S&P500 Index Fund 

The trick is not to pick the right company. The trick is to essentially buy all the big companies through the S&P 500 and to do it consistently. Keep buying it through thick and thin — and especially through thin.

Thursday, June 27, 2019

Alex Rodriguez is business smart according to Warren Buffett

Alex may give me some credit—but he doesn’t need me. He’s got a money mind. He just gets things, if they’re business- or money-related.

Most athletes get gamed. They’re pigeons, basically. They don’t have a nose for smelling out the people that are promoters rather than true friends. I don’t know if the term is used anymore, but we used to call them jock-sniffers. They promote partnerships, the young kid is getting checks like he never dreamt of before. Sometimes even their agents may be in cahoots. That has not happened to Alex, and it wouldn’t happen to Alex. He’s got a bullsh-- detector that’s pretty da-- good.

Monday, May 27, 2019

Berkshire Shareholder meeting 2019 FULL

Watch the full Berkshire Hathaway shareholders meeting above or click here.

To attend Berkshire Annual meetings in person at Omaha, Nebraska you must meet the following requirements

• You must be a Berkshire Hathaway Shareholder

• Shareholders are entitled to a maximum of 4 meeting credentials

• The 2018 Annual Report will be mailed to shareholders of record and beneficial-but not-of-record
shareholders beginning in mid-March. Included in the mailing will be the Proxy Statement.

Thursday, May 2, 2019

Warren Buffett is bearish on the newspaper business model.

Buffett on Newspaper business (aside from the few big name publishers)

“They’re going to disappear. The things that are essentially news is what you don't know that you want to know. You know what happened in national sports the moment it happened, and you can go watch a video of it and so on. You can go to ESPN and see what's going on. You know what's happening in politics. You know what's happening in the stock market.”

“Ads are news to people”
“It was ‘survival of the fattest. Whichever paper was the fattest won, because it had the most ads in it. And ads are news to people.”

“They want to know what supermarket's having the bargain on Coke or Pepsi this weekend and so on. I mean, it upsets the people in the newsroom to talk that way, but the ads were the most important editorial content from the standpoint of the reader."

“If you were looking for a job, you had one place to basically look, and that was the classified section. If you were looking for an apartment to rent, those pages were just dozens and dozens of pages. That's disappeared.”

“The world was changed hugely, and it did it gradually. It went from monopoly to franchise to competitive to ... toast.”

Monday, March 25, 2019

Berkshire is rewarding Greg Abel and Ajit Jain

Mr Abel, 56, and Mr Jain, 67, who became vice-chairmen in January last year, both received US$16 million in salary plus US$2 million in bonus, showed a US SEC filing. Mr Buffett's total compensation last year was US$388,968. But his 16.5 per cent ownership stake in the company forms the bulk of his net worth, which is estimated at US$84.4 billion.

The payouts show Mr Buffett's willingness to pay Berkshire's younger leaders in a manner similar to that at other publicly traded companies.

Mr Abel oversees Berkshire's non-insurance operations such as the BNSF Railway, aircraft parts maker Precision Castparts, retail businesses such as Fruit of the Loom and Brooks running shoes, and Berkshire Hathaway Energy, where he remains executive chairman and owns 1 per cent of the voting stock.

Mr Jain, meanwhile, has long been Berkshire's top insurance executive, and oversees its businesses in that sector, including auto insurer Geico and reinsurer General Reinsurance.

Monday, February 25, 2019

Berkshire buys Red Hat stock

Berkshire has revealed it has bought 4.2 million shares of Red Hat.

IBM is in the process of buying Red Hat in a $34 billion deal that translates to roughly $190 per Red Hat share.

Despite the deal announced at the end of October 2018, Red Hat shares traded in the $170s in November and December 2018.

Friday, February 22, 2019

Berkshire sells some shares in United Airlines, Southwest Airlines, Wells Fargo and Charter Communications.

Warren Buffett's firm dumped more than 15 million shares of Wells Fargo and more than 4 million shares (15% of his stake) of United Airlines (UAL). It also reduced his stake by selling 1.2 million shares in Southwest Airlines (LUV) and Charter Communications (CHTR).

Berkshire's American Air and Delta Air positions were unchanged in Q4 2018, at 43.7 million shares and 65.5 million shares, respectively.

Thursday, February 21, 2019

Berkshire re-enters Suncor Energy position

Berkshire Hathaway has now taken a fresh stake in Suncor Energy Inc for the second time in about six years, sending the U.S.-listed shares of the energy.

Suncor is Canada's biggest oil and gas company. The investment into Suncor comes at a time when global investors have been pulling away from Canada because of its carbon-intensive oil sands and struggle to approve pipelines.

Berkshire said in its recent regulatory filing that it has a stake of 10.8 million shares in the company.

The new position comes more than two years after Berkshire sold its stake in Suncor. Berkshire took a position in Suncor in 2013 and exited its stake in 2016.

Wednesday, February 20, 2019

Warren Buffett buys more shares in GM, JPMorgan, US Bank and Bank of New York Mellon

Buffett’s company increased its stake in General Motors by more than 20 million shares to 93.2 million shares.

Berkshire also increased its investments in financial companies JP Morgan Chase (additional 14.5 million shares), Bank of America(additional 19.8 million shares), and US Bancorp.

Tuesday, February 19, 2019

Warren Buffett dumps Oracle shares

Warren Buffett's Berkshire Hathaway has sold its entire $2 billion stake in Oracle after holding the investment for just one quarter. A recent regulatory filing by Berkshire Hathaway revealed that it sold over 41 million shares in the software company in late 2018. The stake was worth over $2 billion when first disclosed in November 2018.

It's not clear whether the Oracle investment was made by Buffett or his portfolio managers, Todd Combs and Ted Weschler. Berkshire Hathaway typically holds its investments over much longer periods of time.

The Oracle investment was notable because Buffett had historically tended to be cautious about investing in technology stocks.

Wednesday, January 30, 2019

What Warren Buffett thinks of Diversifying an investment portfolio

"Diversification is a protection against ignorance. But there is nothing wrong with diversification........."

Monday, January 28, 2019

Buffett gives away $13.5 million worth of Berkshire stock to charities

Investor Warren Buffett has given away Berkshire Hathaway stock worth $13.5 million to five different charities since summer of 2018. The gifts of Berkshire stock were disclosed in documents filed with the SEC. These relatively smaller gifts are part of Buffett's overall plan to give away his total fortune over time.

Buffett plans to eventually give most of his Berkshire stock to five foundations, with the biggest share going to the Bill & Melinda Gates Foundation.

Monday, January 7, 2019

More insurance products to be offered from Dubai

An insurance unit of billionaire investor Warren Buffett’s Berkshire Hathaway may offer more products to its clients from its office in Dubai as its remains bullish on the prospects of economic growth in regions from Middle East and North Africa to India, Turkey and CIS, a company official said.

The Berkshire Hathaway Specialty Insurance, based in the Dubai International Financial Centre, offers specialty and commercial insurance and reinsurance products with a focus on construction, energy, property, marine, casualty and executive and professional segments.

“We are already reviewing additional products. We might also offer group personal accident,” said Alessandro Cerase, senior executive officer for BHSI Middle East.

“Right now we are not considering entering the retail business but that does not mean we will not review our position if regulations change over the years. We might decide to expand in the local environment.”

The UAE's insurance market is growing, although over 60 insurers compete in a country with a population of some 9 million.

BHSI is part of Berkshire Hathaway’s National Indemnity group of insurance companies. BHSI was launched in 2013, when Mr Buffett announced the move into commercial insurance. The business was launched in the US with a mandate to build a global primary, property, casualty and specialty insurance portfolio. Today, BHSI has approximately 1,000-strong team in 30 offices across 14 countries.