The Warren Buffett Stock Portfolio: Warren Buffett Stock Picks: Why and When He Is Investing in Them by Mary BuffettBestselling authors Mary Buffett and David Clark examine seventeen companies that Warren Buffett has bought for himself and for his holding company, Berkshire Hathaway, as durable investments and explain why these companies are once again selling at prices that offer great long-term growth prospects.
Warren Buffett has always believed that the time to buy stocks is when nobody else wants them. As we enter the fifth year of what many economists are calling the Great Recession, we find that some of the most amazing businesses—those with a durable competitive advantage—are trading at prices and price-to-earnings ratios that offer investors serious long-term moneymaking opportunities. Pessimism about the banking situation in Europe and unemployment in America have created the perfect storm to bring stock prices down and present value-oriented investors some great possibilities.
In Warren Buffett’s world, as stock prices decrease, the prospects for investment increase. Putting a number on those prospects tells Warren whether or not the stock is an attractive buy. The Warren Buffett Stock Portfolio explains how to do just that—how to value companies and conservatively estimate the kind of future return that an investment is offering at its current market price. Mary Buffett and David Clark look at stocks in Warren’s portfolio as the basis for their analysis.
After a brief history of Warren’s investment strategy, Buffett and Clark explain how to interpret a company’s per-share earnings and per-share book-value histories to quickly identify which companies have a durable competitive advantage and to project the compounding annual rate of return that an investment offers. The authors provide case studies and evaluations of seventeen companies in Warren Buffett’s portfolio.
The Warren Buffett Stock Portfolio is a valuable companion to the other books in Buffett and Clark’s successful series—Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, Warren Buffett and the Interpretation of Financial Statements, Warren Buffett’s Management Secrets, and Warren Buffett and the Art of Stock Arbitrage.
BUY AND HOLD INVESTING STRATEGY
Rules That Warren Buffett Lives By
It has everything to do with opportunity. To be sure, Berkshire Hathaway isn't the only company sitting on huge piles of cash. As he famously stated in his letter to shareholders : "Cash does not make us happy. Currently, however, we see nothing on the horizon. Warren Buffett is an investor.
Buy and hold investing is an investment strategy where you purchase an investment, like a stock or mutual fund, and keep it for a long period of time. Many famous investors, such as Benjamin Graham and Warren Buffett , are stalwart fans of buy-and-hold investing. Over a short period of time, financial markets tend to fluctuate.
what your mind can conceive you can achieve
A lot of cash
Warren Buffett is positioned as the single biggest proponent of value investing and buy and holding—accurate or not. Like Sir Galahad, he has achieved his real Holy Grail, and I am the first to salute his immense success. However, can you achieve what he has via insurance companies and arcane tax advantages? He is the classic exception to the rule. If Buffett was forthright at first, what made him change two weeks later and create an instrument so complicated and secretive not even his press release could explain it? Even more confusing is that Buffett contradicted himself a year later, lambasting with vigor his financial Frankenstein creation:. In the Warren Buffett investment strategy was again trading derivatives, and helping to promote government bailouts.
Warren Buffett is arguably the most respected investor of all time, and for good reason. And he's done it without applying any extraordinarily complex methods. In fact, Warren Buffett's investment style is surprisingly simple, and while it's not likely that you're going to replicate Buffett's long-term performance in your own portfolio, you can certainly learn how he invests and apply the same principles to your investment strategy. With that in mind, here's a rundown of the core principles behind how Buffett invests: mentality, stock selection, valuation methods, and more. Image source: The Motley Fool. Perhaps my favorite Buffett quote of all time is, "You can't produce a baby in one month by getting nine women pregnant.