MarioP Posted February 24, 2014 Posted February 24, 2014 Simply the best article to present «How to invest like Buffett!» Easy to understand for every Joe Sixpack, funny but so true. A condensed version of «The intelligent investor». http://finance.fortune.cnn.com/2014/02/24/warren-buffett-berkshire-letter/ I will send it to my non investors friends to see if it is as clear as it seems to me.
ASTA Posted February 24, 2014 Posted February 24, 2014 Thanks Always nice to see Warrens take on investments in its simplest form :D
gary17 Posted February 24, 2014 Posted February 24, 2014 Very ,nicely written. Thank you for posting. Interesting that to be truly long term one should just ignore the macro and focus on the business itself ... And buy stocks with predictable pricing power in the future.
thepupil Posted February 24, 2014 Posted February 24, 2014 "My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's. (VFINX)) I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions, or individuals -- who employ high-fee managers." Why not Berkshire?
txlaw Posted February 24, 2014 Posted February 24, 2014 Simply the best article to present «How to invest like Buffett!» Easy to understand for every Joe Sixpack, funny but so true. A condensed version of «The intelligent investor». http://finance.fortune.cnn.com/2014/02/24/warren-buffett-berkshire-letter/ I will send hit to my non investors friend to see if it is as clear as it seems to me. This is great -- will be forwarding it on as well. Thanks for posting.
Straddle Posted February 24, 2014 Posted February 24, 2014 Nice, thanks for the link. You don't need to be an expert in order to achieve satisfactory investment returns. But if you aren't, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don't swing for the fences. Games are won by players who focus on the playing field -- not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.
Palantir Posted February 24, 2014 Posted February 24, 2014 Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important. (When I hear TV commentators glibly opine on what the market will do next, I am reminded of Mickey Mantle's scathing comment: "You don't know how easy this game is until you get into that broadcasting booth.") +1
fareastwarriors Posted February 24, 2014 Posted February 24, 2014 Buffett Warns of Liquidity Curse, Celebrates Property Bet http://www.bloomberg.com/news/2014-02-24/buffett-warns-of-liquidity-curse-celebrates-property-bet.html
bmichaud Posted February 25, 2014 Posted February 25, 2014 Buffett takes his own advice so seriously that he exited the market entirely in 1969 and 1970. Market valuation and analysis is bad :)
gary17 Posted February 26, 2014 Posted February 26, 2014 I find it interesting that he's cash in the estate - 90% will go buy SPY and 10% short term bonds - so he has no faith in buying BRK? Is Warren suggesting SPY will do better than BRK over the long term? Gary
treasurehunt Posted February 26, 2014 Posted February 26, 2014 I find it interesting that he's cash in the estate - 90% will go buy SPY and 10% short term bonds - so he has no faith in buying BRK? Is Warren suggesting SPY will do better than BRK over the long term? Gary Buffett wouldn't be the one doing the buying; his wife would be, after his death. Presumably Buffett thinks she shouldn't invest in Berkshire unless she is willing and able to make a rough estimate of Berkshire's future earnings. After all, this is what he recommends for valuing any asset in the article. Buffett suggests that investors buy an S&P index fund if they cannot value assets; he's just putting this advice into practice for this wife, I think.
Kiltacular Posted February 26, 2014 Posted February 26, 2014 I find it interesting that he's cash in the estate - 90% will go buy SPY and 10% short term bonds - so he has no faith in buying BRK? Is Warren suggesting SPY will do better than BRK over the long term? Gary Buffett wouldn't be the one doing the buying; his wife would be, after his death. Presumably Buffett thinks she shouldn't invest in Berkshire unless she is willing and able to make a rough estimate of Berkshire's future earnings. After all, this is what he recommends for valuing any asset in the article. Buffett suggests that investors buy an S&P index fund if they cannot value assets; he's just putting this advice into practice for this wife, I think. Good question...good answer
Rabbitisrich Posted February 26, 2014 Posted February 26, 2014 Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important. (When I hear TV commentators glibly opine on what the market will do next, I am reminded of Mickey Mantle's scathing comment: "You don't know how easy this game is until you get into that broadcasting booth.") +1 The way he phrases it can lead new investors into believing that macro views are distinct from company fundamentals. But if you listen to Buffett talk about his companies, and how he acted during the demand fall off post-Lehman, he clearly understands that every company-specific expectation implies macro environments that permit those expectations.
bmichaud Posted February 26, 2014 Posted February 26, 2014 Some good thoughts by Cullen Roche on Buffett's "no macro ever" thinking. http://pragcap.com/the-contradictions-of-warren-buffett http://pragcap.com/chart-of-the-day-buffetts-9010-vs-the-barclay-macro-index http://pragcap.com/a-falling-tide-grounds-all-boats
ni-co Posted February 26, 2014 Posted February 26, 2014 Buffett Warns of Liquidity Curse, Celebrates Property Bet http://www.bloomberg.com/news/2014-02-24/buffett-warns-of-liquidity-curse-celebrates-property-bet.html The title of this article is deliberately utterly misleading…
jay21 Posted February 26, 2014 Posted February 26, 2014 Some good thoughts by Cullen Roche on Buffett's "no macro ever" thinking. http://pragcap.com/the-contradictions-of-warren-buffett http://pragcap.com/chart-of-the-day-buffetts-9010-vs-the-barclay-macro-index http://pragcap.com/a-falling-tide-grounds-all-boats Pretty sure the 90-10 was specific to the estate and the bonds were short term. Also, his graph might be misleading because if you rebalance every so often, you might be deploying cash in down markets and harvesting in up markets, which might make the returns look smoother and better (I am not 100% b/c I didn't do the math). Also, while the author may be technically right that indexing (or I guess any type of asset allocation by his logic) involves macro forecasting, I think that it does not contradict Buffett saying he does not discuss macro when making stock individual purchases.
Libs Posted February 26, 2014 Posted February 26, 2014 Buffett takes his own advice so seriously that he exited the market entirely in 1969 and 1970. Market valuation and analysis is bad :) He didn't exit because he saw a collapse coming, he exited because everything was overpriced. As I understand it. So it wasn't a market call.
rayfinkle Posted February 26, 2014 Posted February 26, 2014 does anyone know when the letter & results will be published?
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