1 Warren Buffett
Warren Buffett's Wikipedia entry states that he was born 30 Aug 1930 in Omaha, Nebraska. They there do not give any source for this birthdate or location, but it's repeated in Andrew Kilpatrick's book also including the information that he was born at the "old Doctors Hospital in Omaha". ("OPV", p35) He was the only son of Howard Homan Buffett and his wife Leila Stahl.
The family lived in Omaha until Warren was 12, then they moved to Washington, D.C. where his father had just been elected to Congress. While in Omaha, Buffett attended Alice Deal Junior High School. ("OPV", p59) In Washington, D.C. he attended Woodrow Wilson High School ("OPV", p60), graduating at age 16. He then attended the Wharton School of Business at the University of Pennsylvania for two years, before transferring to the "Lincoln College of Business Administration at the University of Nebraska where he earned a B.S. degree in 1950". ("OPV", p63)
Warren then applied to the Harvard Business School but was rejected. His application to Columbia Business School however was accepted and he graduated from there June 1951 with a Master's Degree. ("OPV", p64) Then teaching at Columbia, was a financial guru Benjamin Graham, who had recently published his seminal book, "The Intelligent Investor", which Buffett had read in 1950. ("OPV", p64) Buffett credits a change in attitude, to his reading of this book and highly recommends especially Chapter 8 about investor attitude, and Chapter 20 about Margin of Safety. For Buffett reading the book was an epiphany, like Paul on the Road to Damascus. He recommends the book as required reading for any successful investor. ("OPV", p65)
Warren's sister Bertie was then attending Northwestern University. Her roommate at the time was Susan Thompson, also a native of Omaha, whose parents knew Buffett's parents. She introduced Susan to Warren and they married on 19 Apr 1952. Susan's father William H "Wild Bill" Thompson was a professor of psychology and Dean of the School of Arts and Sciences at the University of Omaha. ("OPV", p70) Dean W H Thompson was instrumental in getting Peter Fonda enrolled in college there, as Peter's aunt Harriet Peacock was an acquaintance of Bill. There is a picture of Dean W H Thompson here. The Alumni Center at the University of Omaha is named after him.
After getting out of school, Warren's first job was with Buffett-Falk & Co, a five-person operation in Omaha, which his father had founded. ("OPV", p69) He started looking for companies to invest in, which either had earnings per share at or above their current price, or cash per share above their current price.
After having three children, Warren and Susan separated in 1977, Susan moving to San Francisco. The following year Ms. Astrid Menks moved in with Warren and they lived together for at least 15 years and possibly still do. Warren Buffett is currently living.
2 Howard Homan Buffett
Howard Buffet's Wikipedia entry states that he was born 13 Aug 1903 and died 30 Apr 1964.
On 10 Mar 2009, a posting to Gen-Medieval@rootsweb.com by genealogist John Brandon, first mentions Warren's parents as : "Hon. Howard Buffett ... was born at Omaha, 13 August, 1903, son of Ernest Platt Buffett and Henrietta Duval, his wife ..." citing "Addresses delivered at meetings of the society", By National Society Magna Charta Dames; Published by The Society, 1931"
Howard's family lived in Omaha, so that's where he grew up. Howard Buffett married Leila Stahl in 1925/6, probably in Omaha, she however had grown up in Cumming County, Nebraska. Based on them getting married in their early 20's perhaps they had met at college. They had three children, Warren born 1930, being the middle child between his two sisters. Howard was a U.S. Representative, first being elected in 1942, upon which the family moved to Washington, D.C.
Sources for 2
1910 Census of Ward 7, Omaha, Douglas County, Nebraska, Sheet 60B showing : "Ernest P Buffett, 33, married first time, 12 years ago, NE/NY/NY, Grocer; Hetta Duval Buffet, 32, married first time, 12 years ago, mother of 5, 5 living, WV/WV/WV; Clarence D, 11; George M, 8; Howard H, 6; Fred W, 4; Ruth A 2/12"
1920 Census of Ward 9, Omaha, Douglas County, Nebraska, Sheet 224B showing : "Ernest P Buffet, 42, NE/NY/NY, Proprietor, Grocery Store; Henrietta 46 WV/WV/WV; Clarence D 28; George 18; Howard H 16; Fred 13; Alice 10"
1930 Census of Ward 9, Omaha, Douglas County, Nebraska, Sheet 214B showing : "Howard H Buffett, 26, married at 22, NE/NE/WV, Salesman, Bonds; Leila Buffett, 25, married at 21, NE/PA/NE; Doris E Buffett, 2 2/12 NE"
According to his BGMI entry Howard also has biographical material in:
Biographical Directory of the American Congress, 1774-1971. The Continental Congress (September 5, 1774 to October 21, 1788) and the Congress of the United States (from the first through the ninety- first Congress March 4, 1789, to January 3, 1971, inclusive). Washington, DC: U.S. Government Printing Office, 1971. Biographies begin on page 487. (BiDrAC)
Biographical Directory of the United States Congress, 1774-1989. The Continental Congress, September 5, 1774 to October 21, 1788 and the Congress of the United States from the first through the one hundredth Congresses, March 4, 1789, to January 3, 1989, inclusive. Bicentennial Edition. Washington, DC: U.S. Government Printing Office, 1989. Biographies begin on page 507. (BiDrUSC)
Who Was Who in America. A component volume of Who's Who in American History. Volume 4, 1961-1968. Chicago: Marquis Who's Who, 1968. (WhAm 4)
3 Leila Stahl
Leila Stahl was born about 1904/5 in Nebraska, in Cuming County, the daughter of John Ammon Stahl (b.1867), a native of Pennsylvania by his wife Stella F Barber (b.1873) of Nebraska. Leila married in 1924/25, probably in Omaha, Nebraska to Howard Homan Buffett, a native of that place. They had three children, with Warren being their middle child between his two sisters, all born in Omaha. In 1942 the family moved to Washington, D.C. where Howard had just been elected to Congress. "Buffet...was 66 when his mother died" ("OPV", p55), so she died in 1996/7.
Sources for 3
1900 Census of Bancroft, Cuming County, Nebraska showing : "John A Stahl, Stella F, Marion, John L Barber, brother-in-law, Ford B Barber, brother-in-law"
1910 Census of West Point, Cuming County, Nebraska showing : "Ammon Stahl 43; Stella Stahl 36; Marion Stahl 10; Bernice Stahl 8; Leila Stahl 6; Edith Stahl 4"
1920 Census of West Point, Cuming County, Nebraska showing : "J Ammon Stahl 53; Stella Stahl 46; Marion Stahl 20; Bernice Stahl 17; Leila Stahl 15; Edith Stahl 13"
1930 Census of Ward 9, Omaha, Douglas County, Nebraska, Sheet 214B showing : "Howard H Buffett, 26, married at 22, NE/NE/WV, Salesman, Bonds; Leila Buffett, 25, married at 21, NE/PA/NE; Doris E Buffett, 2 2/12 NE"
4 Ernest Platt Buffett
On 10 Mar 2009, a posting to Gen-Medieval@rootsweb.com by genealogist John Brandon, first mentions Warren's parents as : "Hon. Howard Buffett ... was born at Omaha, 13 August, 1903, son of Ernest Platt Buffett and Henrietta Duval, his wife ..." citing "Addresses delivered at meetings of the society", By National Society Magna Charta Dames; Published by The Society, 1931"
Ernest Platt Buffett was born 3 Feb 1877 in Nebraska, possibly in Omaha, the son of Sidney H Buffett and his wife Evelyn, natives of New York. (The name "Sidney H" is from "Of Permanent Value", pg 35.) Ernest married in 1898, probably in Omaha to Henrietta Duval. They had several children in Omaha, including Howard Homan Buffett. Ernest ran a grocery store, he was yet living in the 1930 census, but his wife Henrietta had evidently already died.
Sources for 4
1885 Nebraska Special State Census of Omaha showing : "S M Buffett, 36; Evelyn, 35; Frank, 18; George, 14; Isaac 12; Ernest Buffett, 8" (Kilpatrick reports his name as "Sidney H Buffett".)
1900 Census of Ward 4, Omaha, Douglas County, Nebraska showing : "Ernest Buffett, Feb 1877, married 2 years, NE/NY/NY; Henrietta D Buffett, Jul 1870, WV/WV/WV, mother of 1, 1 living; Clarence D 1; Arthur Baldwin, boarder"
1910 Census of Ward 7, Omaha, Douglas County, Nebraska, Sheet 60B showing : "Ernest P Buffett, 33, married first time, 12 years ago, NE/NY/NY, Grocer; Hetta Duval Buffet, 32, married first time, 12 years ago, mother of 5, 5 living, WV/WV/WV; Clarence D, 11; George M, 8; Howard H, 6; Fred W, 4; Ruth A 2/12"
WWI Draft Registration Card : "Ernest Platt Buffett, born 3 Feb 1877, Grocer, nearest relation: Mrs Henrietta Buffett"
1920 Census of Ward 9, Omaha, Douglas County, Nebraska, Sheet 224B showing : "Ernest P Buffet, 42, NE/NY/NY, Proprietor, Grocery Store; Henrietta 46 WV/WV/WV; Clarence D 28; George 18; Howard H 16; Fred 13; Alice 10"
1930 Census of Omaha, Douglas County, Nebraska showing : "Ernest P Buffett, 54, NE; Alice 20; Cora V Bunce, housekeeper; Marjorie Bailey, stepdaughter"
5 Henrietta Duval
On 10 Mar 2009, a posting to Gen-Medieval@rootsweb.com by genealogist John Brandon, first mentions Warren's parents as : "Hon. Howard Buffett ... was born at Omaha, 13 August, 1903, son of Ernest Platt Buffett and Henrietta Duval, his wife ..." citing "Addresses delivered at meetings of the society", By National Society Magna Charta Dames; Published by The Society, 1931"
Henrietta Duval was born in Jul 1870 in West Virginia. In 1898, probably in Omaha, she married Ernest P Buffett. They had several children, including Howard Homan Buffett. Henrietta evidently died sometime between the 1920 and 1930 census.
Sources for 5
1900 Census of Ward 4, Omaha, Douglas County, Nebraska showing : "Ernest Buffett, Feb 1877, married 2 years, NE/NY/NY; Henrietta D Buffett, Jul 1870, WV/WV/WV, mother of 1, 1 living; Clarence D 1; Arthur Baldwin, boarder"
1910 Census of Ward 7, Omaha, Douglas County, Nebraska, Sheet 60B showing : "Ernest P Buffett, 33, married first time, 12 years ago, NE/NY/NY, Grocer;Hetta Duval Buffet, 32, married first time, 12 years ago, mother of 5, 5 living, WV/WV/WV; Clarence D, 11; George M, 8; Howard H, 6; Fred W, 4; Ruth A 2/12"
1920 Census of Ward 9, Omaha, Douglas County, Nebraska, Sheet 224B showing : "Ernest P Buffet, 42, NE/NY/NY, Proprietor, Grocery Store; Henrietta 46 WV/WV/WV; Clarence D 28; George 18; Howard H 16; Fred 13; Alice 10"
1930 Census of Omaha, Douglas County, Nebraska showing : "Ernest P Buffett, 54, NE; Alice 20; Cora V Bunce, housekeeper; Marjorie Bailey, stepdaughter"
6 John Ammon Stahl
John Ammon Stahl was born Jan 1867 in Pennsylvania. In 1898/9, probably in Nebraska, he married Stella F Barber, a native of that state. They had several children, including Leila Stahl in Nebraska.
Sources for 6
1900 Census of Bancroft, Cuming County, Nebraska showing : "John A Stahl, Stella F, Marion, John L Barber, brother-in-law, Ford B Barber, brother-in-law"
1910 Census of West Point, Cuming County, Nebraska showing : "Ammon Stahl 43; Stella Stahl 36; Marion Stahl 10; Bernice Stahl 8; Leila Stahl 6; Edith Stahl 4"
1920 Census of West Point, Cuming County, Nebraska showing : "J Ammon Stahl 53; Stella Stahl 46; Marion Stahl 20; Bernice Stahl 17; Leila Stahl 15; Edith Stahl 13"
7 Stella F Barber
Stella F Barber was born Dec 1873 in Nebraska, the daughter and evidently eldest child of Ford Bela Barber and his wife Susan Anne Watson. By 1880 the family is listed living in Logan, Cuming County, Nebraska and it's possible that Stella was born here. In 1890 the family is living in the town of Bancroft where Ford enters his name in the Special Veterans Census that year. He states that he served as a sergeant in Ohio. In 1898/9, probably in Nebraska, and possibly in Cuming County, Stella married John Ammon Stahl who had moved there from Pennsylvania. They had several children, including Leila Stahl in Nebraska. Her mother Susan is supposed to have died in 1899 possibly in Nebraska. Her father Ford moved to Los Angeles from where he files an invalid pension based on his Civil War service, and from where his next wife Addie, now his widow, files for a widows pension later. Meanwhile Stella's brothers John and Ford Barber (Jr) show up living with John Stahl and his wife Stella in the 1900 Census.
Sources for 7
1900 Census of Bancroft, Cuming County, Nebraska showing : "John A Stahl, Stella F, Marion, John L Barber, brother-in-law, Ford B Barber, brother-in-law"
1910 Census of West Point, Cuming County, Nebraska showing : "Ammon Stahl 43; Stella Stahl 36; Marion Stahl 10; Bernice Stahl 8; Leila Stahl 6; Edith Stahl 4"
1920 Census of West Point, Cuming County, Nebraska showing : "J Ammon Stahl 53; Stella Stahl 46; Marion Stahl 20; Bernice Stahl 17; Leila Stahl 15; Edith Stahl 13"
8 Sidney H Buffett
Sidney H Buffett "from Dix Hills on Long Island, New York" ("OPV", pg 35) moved to Omaha and opened a grocery store in 1869.
Sources for 8
1885 Nebraska Special State Census of Omaha showing : "S M Buffett, 36; Evelyn, 35; Frank, 18; George, 14; Isaac 12; Ernest Buffett, 8" (Kilpatrick reports his name as "Sidney H Buffett".)
Further Ascent 1
According to a WorldConnect posting here:
http://wc.rootsweb.ancestry.com/cgi-bin/igm.cgi?op=PED&db=geolarson2&id=I092667
Warren Buffet, through Leila Stahl, ascends to Edward I, King of England
I only vouch for those parts of the ascent for which I have given specific citation links below, otherwise I present the rest of the ascent as it's given in the WorldConnect link above. The specific details as given there are:
Warren Buffet born 30 Aug 1930 in Omaha, Nebraska
Leila Stahl born about 1904/5 in Cuming County, Nebraska
Stella Frances Barber (1873-1960) married John Ammon Stahl (1867-1940)
Ford Bela Barber (1842-1923) (citation)
Lawrence Barber (1792-1880) (citation)
Bela Barber (1762-1836) married 1783 Margaret Jones (citation)
Stephen Barber (1714-1806) married 1748 Alice Cass (1730-1814) (citation)
David Barber (1686-1729) married Hannah Post (citation) (citation)
Ruth Drake (1657-1731) married 25 Jan 1677 as his second wife, Samuel Barber (citation) (citation)
John Drake (1622-1688) married 1648 Hannah Moore (citation)
John Drake (1590-17 Aug 1659) married Elizabeth Rogers (d.1699) (citation) However on 31 May 2009 J Higgins suggested on soc.genealogy.medieval (citation) that "...the archives appear to indicate that the immigrant John Drake of Windsor, Connecticut, was not of the Drake family of Devonshire, as shown in the source you cite." M. Hollick then agreed and suggested a look at TAG 65 (1990):87--8; TAG 63 (1988):193-206. Douglas Richardson states that this John Drake of Windsor originated in Hampton-in-Arden, Warwickshire and that his wife and mother of his sons was Lettice Shakespeare daughter of Anthony.
William Drake (1565-1640) of Wiscomb, co Devon (citation)
Robert Drake (1528-1600) of Wiscomb, co Devon (citation)
Anne or Amy Grenville (1510-1577) (thePeerage.com) married John Drake of Ashe, co Devon (citation)
Roger Grenville (1477-1524) (thePeerage.com)
Thomas Grenville (thePeerage.com) (removed prior dates as unsourced)
Thomas Grenville (thePeerage.com) (removed prior dates as unsourced)
William Grenville (thePeerage.com) (removed prior dates as unsourced)
Margaret Courtenay (thePeerage.com) (Leo van de Pas points out here that Margaret could not have been born in 1377 with this ascent, so I've removed her dates until they can be properly sourced.) J Higgins suggests: "See the group archives for April and May 2001 for a discussion by Louise Staley and others as to which Hugh Courtenay was the father of Margaret who married Theobald Grenville. As Leo indicates, chronology indicates that it cannot be the Hugh Courtenay mentioned in this supposed royal descent for Warren Buffet."
Hugh Courtenay (d. Mar 1425/6) (thePeerage.com) (His exact birthyear is unknown. His elder brother Edward, whom he survived, was born c. 1357)
Edward Courtenay (1329-1372) (thePeerage.com)
Margaret de Bohun (3 Apr 1311 - 16 Dec 1391) (thePeerage.com)
Elizabeth Plantagenet (7 Aug 1282 - 5 May 1316) (thePeerage.com)
Edward I "Longshanks", King of England (18 Jun 1239 - 7 Jul 1307) (thePeerage.com)
Further Ascent 2
Since the above line is hopelessly broken, Fred Chalfant has supplied a new line to test.
Warren Buffet born 30 Aug 1930 in Omaha, Nebraska
Leila Stahl born about 1904/5 in Cuming County, Nebraska
Stella Frances Barber (1873-1960) married John Ammon Stahl (1867-1940)
Susan Ann Watson (1845-1899) married Ford Bela Barber (1842-1923)
Deborah Collomore Pennell (1822-1854) married John Watson
Thomas Pennell (1791-) married Rhoda Mallet
Mary Cotton (1759-1818) married Stephen Pennell
Thomas Cotton (1725-1781) married Agnes Smith
Leonard Cotton (abt 1690-) married Hannah
Rev. Thomas Cotton (1653-1730) married Bridget Hoar (1673-)
Bridget Lisle (abt 1645-1723) married Leonard Hoar (abt 1630 1675)
John Lisle (abt 1610-1664) married Alice Beckenshaw
Bridget Hungerford married William Lisle of Wootten
Mary Berkeley (d. 1629) married John Hungerford (1566-1635) of Down Ampney
Richard Berkeley (~1531-1605) of Stoke Giffard married Elizabeth or Anne Reade
Isabella Dennis married Sir John Berkeley (~1510-1546) of Stoke Giffard
Anne Berkeley married Sir William Dennis (1470-1534) of Durham
Maurice (d.1506), 3rd Lord Berkeley married Isabel Meade (d.1514)
James, 6th Lord Berkeley married Isabel Mowbray
Sir James de Berkeley married Elizabeth Bluet
Elizabeth le Despencer married Maurice, 4th Lord Berkeley
Alianor de Clare married Hugh le Despencer , Earl of Winchester
Joan Plantagenet married Gilbert de Clare, Earl of Gloucester and Hertford
Edward I "Longshanks", King of England (18 Jun 1239 - 7 Jul 1307) (thePeerage.com)
петък, 21 август 2009 г.
сряда, 19 август 2009 г.
Бъфет: Федералният дълг излага на риск икономиката
19 Август 2009 15:15
САЩ трябва да обърне внимание на голямото количество монетарно лекарство, което беше налято във финансовата система и сега заплашва най-голямата икономика в света и нейната валута, каза милиардерът Уорън Бъфет, предаде Bloomberg днес.
Фонтанът от федерални пари спаси финансовата система и в момента американската икономика бавно се възстановява, казва Бъфет. Докато той одобрява мерките, приети от ФЕД и официалните власти от администрациите на Буш и Обама, Бъфет казва, че фискалната политика на САЩ е неизследвана територия.
Правителството се опитва да подпомогне бизнеса и потребителското харчене чрез стимулиращ план от $787 млрд., обхващащ намаление на данъците и инфраструктурни проекти, докато Финансовото министерство и ФЕД похарчиха отделно милиарди по различни програми, за да спасят финансови институции и да съживят банковата система. Бюджетният дефицит на САЩ се прогнозира да достигне рекордните $1.841 трилиона за годината, която приключва на 30 септември.
Продължават да се предписват огромни дози монетарно лекарство и не след дълго ще трябва да се справяне със страничните ефекти, каза 78-годишният Бъфет. Засега повечето от тези ефекти са невидими и могат да останат латентни за дълго време. Заплахата от тях може да бъде голяма дотолкова, доколкото е заплашителна финансовата криза сама по себе си, добави още Бъфет.
Печатането на пари ще издуе дефицита до 13% от БВП през тази фискална година, докато нетният дълг ще нарасне до 56% от БВП, смята Бъфет.
Американският бюджетен дефицит достигна рекорд за първите 10 месеца на фискалната година и проби месечния връх за юли.
Властите трябва да направят каквото е нужно, за да върнат растежа на американската икономика, казва Бъфет.
Веднъж когато възстановяването бъде постигнато, Конгресът трябва да спре покачването на съотношението дълг/БВП и да поддържа растежа на задълженията в рамките на растежа на ресурсите, казва Бъфет. В момента наистина има нужда от големи промени както при данъците, така и при разходите. Съживената икономика няма да може да попълни дефицита при такава дупка, допълва той.
Необузданите доларови емисии със сигурност ще причинят стопяване на покупателната стойност на долара, заяви милиардерът. Съдбата на долара зависи от Конгреса, каза още той.
Бъфет е председател и главен изпълнителен директор на Berkshire Hathaway Inc. Бъфет изгради Berkshire във фирма със $155 млрд. в разстояние на четири десетилетия с дузина придобивания, покупка на компании, които продават сладолед, продават частни самолети на лизинг и ръководят енергийни проекти.
19 Август 2009 15:15
САЩ трябва да обърне внимание на голямото количество монетарно лекарство, което беше налято във финансовата система и сега заплашва най-голямата икономика в света и нейната валута, каза милиардерът Уорън Бъфет, предаде Bloomberg днес.
Фонтанът от федерални пари спаси финансовата система и в момента американската икономика бавно се възстановява, казва Бъфет. Докато той одобрява мерките, приети от ФЕД и официалните власти от администрациите на Буш и Обама, Бъфет казва, че фискалната политика на САЩ е неизследвана територия.
Правителството се опитва да подпомогне бизнеса и потребителското харчене чрез стимулиращ план от $787 млрд., обхващащ намаление на данъците и инфраструктурни проекти, докато Финансовото министерство и ФЕД похарчиха отделно милиарди по различни програми, за да спасят финансови институции и да съживят банковата система. Бюджетният дефицит на САЩ се прогнозира да достигне рекордните $1.841 трилиона за годината, която приключва на 30 септември.
Продължават да се предписват огромни дози монетарно лекарство и не след дълго ще трябва да се справяне със страничните ефекти, каза 78-годишният Бъфет. Засега повечето от тези ефекти са невидими и могат да останат латентни за дълго време. Заплахата от тях може да бъде голяма дотолкова, доколкото е заплашителна финансовата криза сама по себе си, добави още Бъфет.
Печатането на пари ще издуе дефицита до 13% от БВП през тази фискална година, докато нетният дълг ще нарасне до 56% от БВП, смята Бъфет.
Американският бюджетен дефицит достигна рекорд за първите 10 месеца на фискалната година и проби месечния връх за юли.
Властите трябва да направят каквото е нужно, за да върнат растежа на американската икономика, казва Бъфет.
Веднъж когато възстановяването бъде постигнато, Конгресът трябва да спре покачването на съотношението дълг/БВП и да поддържа растежа на задълженията в рамките на растежа на ресурсите, казва Бъфет. В момента наистина има нужда от големи промени както при данъците, така и при разходите. Съживената икономика няма да може да попълни дефицита при такава дупка, допълва той.
Необузданите доларови емисии със сигурност ще причинят стопяване на покупателната стойност на долара, заяви милиардерът. Съдбата на долара зависи от Конгреса, каза още той.
Бъфет е председател и главен изпълнителен директор на Berkshire Hathaway Inc. Бъфет изгради Berkshire във фирма със $155 млрд. в разстояние на четири десетилетия с дузина придобивания, покупка на компании, които продават сладолед, продават частни самолети на лизинг и ръководят енергийни проекти.
A public-opinion poll is no substitute for thought.
Warren Buffett
Beware of geeks bearing formulas.
Warren Buffett
Chains of habit are too light to be felt until they are too heavy to be broken.
Warren Buffett
Derivatives are financial weapons of mass destruction.
Warren Buffett
I always knew I was going to be rich. I don't think I ever doubted it for a minute.
Warren Buffett
I am quite serious when I say that I do not believe there are, on the whole earth besides, so many intensified bores as in these United States. No man can form an adequate idea of the real meaning of the word, without coming here.
Warren Buffett
I buy expensive suits. They just look cheap on me.
Warren Buffett
I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Warren Buffett
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
Warren Buffett
If a business does well, the stock eventually follows.
Warren Buffett
If past history was all there was to the game, the richest people would be librarians.
Warren Buffett
In the business world, the rearview mirror is always clearer than the windshield.
Warren Buffett
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.
Warren Buffett
It's better to hang out with people better than you. Pick out associates whose behavior is better than yours and you'll drift in that direction.
Warren Buffett
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Warren Buffett
Let blockheads read what blockheads wrote.
Warren Buffett
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
Warren Buffett
Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.
Warren Buffett
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.
Warren Buffett
Only when the tide goes out do you discover who's been swimming naked.
Warren Buffett
Warren Buffett
Beware of geeks bearing formulas.
Warren Buffett
Chains of habit are too light to be felt until they are too heavy to be broken.
Warren Buffett
Derivatives are financial weapons of mass destruction.
Warren Buffett
I always knew I was going to be rich. I don't think I ever doubted it for a minute.
Warren Buffett
I am quite serious when I say that I do not believe there are, on the whole earth besides, so many intensified bores as in these United States. No man can form an adequate idea of the real meaning of the word, without coming here.
Warren Buffett
I buy expensive suits. They just look cheap on me.
Warren Buffett
I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Warren Buffett
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
Warren Buffett
If a business does well, the stock eventually follows.
Warren Buffett
If past history was all there was to the game, the richest people would be librarians.
Warren Buffett
In the business world, the rearview mirror is always clearer than the windshield.
Warren Buffett
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.
Warren Buffett
It's better to hang out with people better than you. Pick out associates whose behavior is better than yours and you'll drift in that direction.
Warren Buffett
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Warren Buffett
Let blockheads read what blockheads wrote.
Warren Buffett
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
Warren Buffett
Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.
Warren Buffett
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.
Warren Buffett
Only when the tide goes out do you discover who's been swimming naked.
Warren Buffett
Our favorite holding period is forever.
Warren Buffett
Price is what you pay. Value is what you get.
Warren Buffett
Risk comes from not knowing what you're doing.
Warren Buffett
Risk is a part of God's game, alike for men and nations.
Warren Buffett
Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
Warren Buffett
Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.
Warren Buffett
Someone's sitting in the shade today because someone planted a tree a long time ago.
Warren Buffett
The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.
Warren Buffett
The first rule is not to lose. The second rule is not to forget the first rule.
Warren Buffett
The investor of today does not profit from yesterday's growth.
Warren Buffett
The only time to buy these is on a day with no "y" in it.
Warren Buffett
The smarter the journalists are, the better off society is. For to a degree, people read the press to inform themselves-and the better the teacher, the better the student body.
Warren Buffett
There seems to be some perverse human characteristic that likes to make easy things difficult.
Warren Buffett
Time is the friend of the wonderful company, the enemy of the mediocre.
Warren Buffett
Value is what you get.
Warren Buffett
Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.
Warren Buffett
We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'
Warren Buffett
We enjoy the process far more than the proceeds.
Warren Buffett
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Warren Buffett
When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.
Warren Buffett
When you combine ignorance and leverage, you get some pretty interesting results.
Warren Buffett
Why not invest your assets in the companies you really like? As Mae West said, "Too much of a good thing can be wonderful".
Warren Buffett
Wide diversification is only required when investors do not understand what they are doing.
Warren Buffett
You do things when the opportunities come along. I've had periods in my life when I've had a bundle of ideas come along, and I've had long dry spells. If I get an idea next week, I'll do something. If not, I won't do a damn thing.
Warren Buffett
You only have to do a very few things right in your life so long as you don't do too many things wrong.
Warren Buffett
Your premium brand had better be delivering something special, or it's not going to get the business.
Warren Buffett
A Back to Basics Weekend With Warren Buffett
May 4, 2009
Omaha
Nati Harnik/Associated Press
Warren Buffett met with questions, and some anger.
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“If you have a 150 I.Q., sell 30 points to someone else. You need to be smart, but not a genius.”
So said Warren Buffett, the world’s most famous value investor, at Berkshire Hathaway’s annual meeting here on Saturday, a regular pilgrimage for some 35,000 shareholders that many call Woodstock for capitalists. This year there wasn’t as much free-flowing love, given what a difficult year it’s been for capitalists, Mr. Buffett included.
But shareholders still hung on every word from the 78-year-old investor’s lips. Between sips of Cherry Coke and bites of peanut brittle, he served up some wisdom that might have saved a lot of heartache (not to mention jobs and untold financial losses) had investors heeded it over the last decade: keep it simple.
During the boom, the country became too enamored with the idea that the best and brightest could predict the future; too dependent on complicated financial models developed by quant jocks; and too reactive to every uptick or slight drop in the market. It still may be today.
“If you need to use a computer or a calculator to make the calculation, you shouldn’t buy it,” he said. Given that the stress tests for the banking system — developed with complex spreadsheets and using sophisticated formulas predicting the next two years’ worth of earnings and write-downs — are being released this week, it was timely advice. (He still likes his investment in Wells Fargo, by the way, and suggests it has enough capital already. Though, it’s worth noting, he seemed less optimistic about the economy than officials in Washington.)
Charlie Munger, Mr. Buffett’s 85-year-old business partner, added his two cents: “Some of the worst business decisions I’ve ever seen are those with future projections and discounts back. It seems like the higher mathematics with more false precision should help you, but it doesn’t. They teach that in business schools because, well, they’ve got to do something.”
I had traveled to Omaha to sit on stage, along with two other journalists, to pepper Mr. Buffett and Mr. Munger with questions — some quite tough — for more than five hours. Shareholders had sent in thousands of them by e-mail before I left. Even while I was on stage, they kept arriving, stuffing my BlackBerry.
Some questions I received showed flashes of real anger. Mr. Buffett, who had earned the nickname “the Oracle of Omaha” for his long-term performance, had let some of these shareholders down, they said. This past year was his worst ever. Like everyone else, he missed the credit crisis and subprime debacle.
Not surprisingly, however, his fan club is still strong, dismissing his bad year as part of the “markets go up and markets go down” inevitability of value investing. Even so, Mr. Buffett himself acknowledged, “I didn’t cover myself in glory” in 2008.
Others, though, wanted to know why Mr. Buffett was still invested in Moody’s, whose credibility took a huge hit in the bust along with other credit rating agencies after it doled out Triple-A ratings the way McDonald’s sells hamburgers (a shareholder’s analogy, not mine). There were plenty of questions about Mr. Buffett’s succession plan (or lack thereof, to the dismay of many investors). And if it was not about Mr. Buffett’s successor, it was about his reinsurance guru, Ajit Jain, who runs Berkshire’s wildly profitable reinsurance business. “The Titanic-like ending of A.I.G., after Greenberg left, has me spooked,” wrote Ben Knoll, in reference to Maurice Greenberg, A.I.G.’s former chief. He wanted to know who was next in line to take over a job that requires assessing risk.
Mr. Buffett sometimes meandered, but he did not skirt the questions. It “would be impossible” to replace Mr. Jain, he said, saying that “we won’t find a substitute for him.” He suggested that if Mr. Jain were ever to leave, Berkshire didn’t have anyone it would allow to write the same size insurance policies. Most C.E.O.’s I know would have said they had a succession plan even if they didn’t.
To the question about Moody’s, he said the company “eagerly sought stupid assumptions that enabled them to do clever mathematics.” As to why he didn’t exert his influence, he said: “I don’t think I’ve ever made a call to Moody’s. We don’t tell Burlington Northern what safety procedures to put in or AmEx who they should lend to. When we own stock, we are not there to try and change people.”
When asked why the conglomerate structure seemed to work so well for him, he remarkably — and surprisingly, to me — explained the structure is efficient and comes in handy around April 15. “We’ve got this ability in terms of moving money around into various opportunities” without tax consequences, he said, describing how he can invest the profits from one business into another without being taxed.
Most of what Mr. Buffett said was basic and obvious — and was roundly ignored during the period leading up to this mess. “Leverage is what causes people real trouble in this world,” Mr. Buffett said. “You don’t want to be in a position where someone can pull the rug out from under you or, emotionally, where you pull it out from under yourself.”
Not that Mr. Buffett doesn’t have a rug or two of his own. For a man who preaches the virtues of simplicity in all things investing, he is wrapped up in a lot of complicated investments, namely the very same derivatives that he has called “weapons of mass destruction.” On Saturday, he acknowledged that he had futures and options contracts on stock indexes and foreign currencies, but added that, in and of themselves, “derivatives aren’t evil.”
Insurance, by the way, is not exactly simple, either. There is a crystal-ball aspect to the industry, papered over with spreadsheets of probability calculations.
On Sunday morning, the day after the meeting, I attended a private brunch for the company’s directors and managers. It was a star-studded affair (for financial types): Bill Gates, Don Graham of The Washington Post, Charlie Rose, Steve Wynn, Mr. Jain and even a movie star, Glenn Close.
It had been a long weekend. Everyone was heading to the airport. One C.E.O. told me, “If I can just hold on and try to think like Warren for a couple of days when I get home every year after this weekend, it’s a success.”
May 4, 2009
Omaha
Nati Harnik/Associated Press
Warren Buffett met with questions, and some anger.
Add to Portfolio
Berkshire Hathaway Inc
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“If you have a 150 I.Q., sell 30 points to someone else. You need to be smart, but not a genius.”
So said Warren Buffett, the world’s most famous value investor, at Berkshire Hathaway’s annual meeting here on Saturday, a regular pilgrimage for some 35,000 shareholders that many call Woodstock for capitalists. This year there wasn’t as much free-flowing love, given what a difficult year it’s been for capitalists, Mr. Buffett included.
But shareholders still hung on every word from the 78-year-old investor’s lips. Between sips of Cherry Coke and bites of peanut brittle, he served up some wisdom that might have saved a lot of heartache (not to mention jobs and untold financial losses) had investors heeded it over the last decade: keep it simple.
During the boom, the country became too enamored with the idea that the best and brightest could predict the future; too dependent on complicated financial models developed by quant jocks; and too reactive to every uptick or slight drop in the market. It still may be today.
“If you need to use a computer or a calculator to make the calculation, you shouldn’t buy it,” he said. Given that the stress tests for the banking system — developed with complex spreadsheets and using sophisticated formulas predicting the next two years’ worth of earnings and write-downs — are being released this week, it was timely advice. (He still likes his investment in Wells Fargo, by the way, and suggests it has enough capital already. Though, it’s worth noting, he seemed less optimistic about the economy than officials in Washington.)
Charlie Munger, Mr. Buffett’s 85-year-old business partner, added his two cents: “Some of the worst business decisions I’ve ever seen are those with future projections and discounts back. It seems like the higher mathematics with more false precision should help you, but it doesn’t. They teach that in business schools because, well, they’ve got to do something.”
I had traveled to Omaha to sit on stage, along with two other journalists, to pepper Mr. Buffett and Mr. Munger with questions — some quite tough — for more than five hours. Shareholders had sent in thousands of them by e-mail before I left. Even while I was on stage, they kept arriving, stuffing my BlackBerry.
Some questions I received showed flashes of real anger. Mr. Buffett, who had earned the nickname “the Oracle of Omaha” for his long-term performance, had let some of these shareholders down, they said. This past year was his worst ever. Like everyone else, he missed the credit crisis and subprime debacle.
Not surprisingly, however, his fan club is still strong, dismissing his bad year as part of the “markets go up and markets go down” inevitability of value investing. Even so, Mr. Buffett himself acknowledged, “I didn’t cover myself in glory” in 2008.
Others, though, wanted to know why Mr. Buffett was still invested in Moody’s, whose credibility took a huge hit in the bust along with other credit rating agencies after it doled out Triple-A ratings the way McDonald’s sells hamburgers (a shareholder’s analogy, not mine). There were plenty of questions about Mr. Buffett’s succession plan (or lack thereof, to the dismay of many investors). And if it was not about Mr. Buffett’s successor, it was about his reinsurance guru, Ajit Jain, who runs Berkshire’s wildly profitable reinsurance business. “The Titanic-like ending of A.I.G., after Greenberg left, has me spooked,” wrote Ben Knoll, in reference to Maurice Greenberg, A.I.G.’s former chief. He wanted to know who was next in line to take over a job that requires assessing risk.
Mr. Buffett sometimes meandered, but he did not skirt the questions. It “would be impossible” to replace Mr. Jain, he said, saying that “we won’t find a substitute for him.” He suggested that if Mr. Jain were ever to leave, Berkshire didn’t have anyone it would allow to write the same size insurance policies. Most C.E.O.’s I know would have said they had a succession plan even if they didn’t.
To the question about Moody’s, he said the company “eagerly sought stupid assumptions that enabled them to do clever mathematics.” As to why he didn’t exert his influence, he said: “I don’t think I’ve ever made a call to Moody’s. We don’t tell Burlington Northern what safety procedures to put in or AmEx who they should lend to. When we own stock, we are not there to try and change people.”
When asked why the conglomerate structure seemed to work so well for him, he remarkably — and surprisingly, to me — explained the structure is efficient and comes in handy around April 15. “We’ve got this ability in terms of moving money around into various opportunities” without tax consequences, he said, describing how he can invest the profits from one business into another without being taxed.
Most of what Mr. Buffett said was basic and obvious — and was roundly ignored during the period leading up to this mess. “Leverage is what causes people real trouble in this world,” Mr. Buffett said. “You don’t want to be in a position where someone can pull the rug out from under you or, emotionally, where you pull it out from under yourself.”
Not that Mr. Buffett doesn’t have a rug or two of his own. For a man who preaches the virtues of simplicity in all things investing, he is wrapped up in a lot of complicated investments, namely the very same derivatives that he has called “weapons of mass destruction.” On Saturday, he acknowledged that he had futures and options contracts on stock indexes and foreign currencies, but added that, in and of themselves, “derivatives aren’t evil.”
Insurance, by the way, is not exactly simple, either. There is a crystal-ball aspect to the industry, papered over with spreadsheets of probability calculations.
On Sunday morning, the day after the meeting, I attended a private brunch for the company’s directors and managers. It was a star-studded affair (for financial types): Bill Gates, Don Graham of The Washington Post, Charlie Rose, Steve Wynn, Mr. Jain and even a movie star, Glenn Close.
It had been a long weekend. Everyone was heading to the airport. One C.E.O. told me, “If I can just hold on and try to think like Warren for a couple of days when I get home every year after this weekend, it’s a success.”
I shook Mr. Buffett’s hand goodbye and tried to remember his words from the day before: “There is so much that’s false and nutty in modern investing practice and modern investment banking,” he said.
“If you just reduced the nonsense, that’s a goal you should reasonably hope for.”
Покупките в здравния бизнес накараха Бъфет да коментира икономиката в болнична метафора
19 август, 2009
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Икономиката на САЩ излиза от спешното отделение и започва да се възстановява бавно, пише в днешната си рубрика в New York Times Уорън Бъфет. Страната трябва да се справи със страничните ефекти на „монетарните лекарства” , които продължават да и се предписват.
Нетният дълг на страната расте като гъба, пише Бъфет. През настоящата фискална година той ще нараства с по един процентен пункт на месец, като ще се увеличи до 56% от БВП – при старт от 41%, коментира легендарния инвеститор.
„Непосредствената ни цел е да изправим страната на крака и да я накараме да оживее – каквото и да отнеме” – сочи той, като добавя, че след като растежа е веднъж осигурен правителството трябва да спре нарастването на съотношението дълг/БВП.
19 август, 2009
Виж коментарите
Коментирай
Икономиката на САЩ излиза от спешното отделение и започва да се възстановява бавно, пише в днешната си рубрика в New York Times Уорън Бъфет. Страната трябва да се справи със страничните ефекти на „монетарните лекарства” , които продължават да и се предписват.
Нетният дълг на страната расте като гъба, пише Бъфет. През настоящата фискална година той ще нараства с по един процентен пункт на месец, като ще се увеличи до 56% от БВП – при старт от 41%, коментира легендарния инвеститор.
„Непосредствената ни цел е да изправим страната на крака и да я накараме да оживее – каквото и да отнеме” – сочи той, като добавя, че след като растежа е веднъж осигурен правителството трябва да спре нарастването на съотношението дълг/БВП.
понеделник, 17 август 2009 г.
неделя, 16 август 2009 г.
Buffett’s Berkshire Hathaway Discloses Becton Dickinson Stake
Aug. 15 -- Billionaire investor Warren Buffett’s Berkshire Hathaway Inc. took a stake in Becton Dickinson & Co., as shares of the syringe and laboratory equipment maker advanced in the second quarter.
Berkshire had 1.2 million shares of the Franklin Lakes, New Jersey-based medical supplies company at the end of the second quarter, Berkshire said yesterday in a regulatory filing listing U.S. stock holdings as of June 30. Omaha, Nebraska-based Berkshire also increased its stake in Johnson & Johnson, the world’s largest maker of health-care products, by 14 percent to 36.9 million shares.
“When you have a history of investing success like Warren Buffett, anybody who doesn’t pay attention to what he’s doing in his stock portfolio does so at their own risk,” Betz said.
Surgical Blades
Buffett makes most of the investment decisions at Berkshire, while Lou Simpson, 72, manages the portfolio for car insurance unit Geico Corp. Buffett has cautioned investors against assuming all moves in the equity portfolio are his.
Carmax, WellPoint
The firm also cut its stake in used-car dealer Carmax Inc. by 25 percent to 9 million shares, and reduced holdings of Home Depot Inc. by 25 percent to 2.76 million shares.
Berkshire reduced holdings of WellPoint Inc. 27 percent to 3.5 million shares and sold 24 percent of its shares in UnitedHealth Group Inc., lowering its total to 3.4 million shares.
American Express
Berkshire’s own shares passed $100,000 for the first time since January last week, recovering from a six-year low in March. The stock fell $750 to $101,400 yesterday.
Mutual funds and individual investors mimic the firm’s stock picks to duplicate Buffett’s investing success. An academic study in 2007 found that using this strategy for 31 years would have delivered annualized returns of about 25 percent, double the return of the Standard & Poor’s 500 Index.
Berkshire had also previously disclosed the sale of its stake in Constellation Energy Group Inc. Berkshire’s MidAmerican Energy Holdings Co. acquired the shares last year as part of a termination package when Constellation broke an agreement to sell itself to Buffett’s firm for $4.7 billion.
Aug. 15 -- Billionaire investor Warren Buffett’s Berkshire Hathaway Inc. took a stake in Becton Dickinson & Co., as shares of the syringe and laboratory equipment maker advanced in the second quarter.
Berkshire had 1.2 million shares of the Franklin Lakes, New Jersey-based medical supplies company at the end of the second quarter, Berkshire said yesterday in a regulatory filing listing U.S. stock holdings as of June 30. Omaha, Nebraska-based Berkshire also increased its stake in Johnson & Johnson, the world’s largest maker of health-care products, by 14 percent to 36.9 million shares.
“Becton Dickinson is an old-line company, a leader in its chosen field, and it has predictable cash flows and future earnings,” said Frank Betz, a partner at Warren, New Jersey- based Carret Zane Capital Management, which owns Berkshire shares.
“He’s keen on the health-care sector and its long-term possibilities as Americans age.”
Buffett built a stock portfolio valued at more than $48 billion by betting on companies including soft-drink maker Coca- Cola Co. that he believes have competitive advantages and enduring brand popularity.
Known as the “Oracle of Omaha,” Buffett, 78, is a cult figure among investors who mimic his stock picks.
He drew a record 35,000 people to Omaha’s Qwest Center arena for the shareholders meeting this year.
“When you have a history of investing success like Warren Buffett, anybody who doesn’t pay attention to what he’s doing in his stock portfolio does so at their own risk,” Betz said.
Surgical Blades
Becton manufactures products including needles and syringes, catheters, surgical blades and scalpels and critical- care monitoring devices, according to its Web site.
The company climbed 6.1 percent in the three months ended June 30 to $71.31 on the New York Stock Exchange.
Becton closed yesterday at $66.39. Liz Ryan Sax, a spokeswoman for Becton Dickinson, had no immediate comment.
Buffett makes most of the investment decisions at Berkshire, while Lou Simpson, 72, manages the portfolio for car insurance unit Geico Corp. Buffett has cautioned investors against assuming all moves in the equity portfolio are his.
The filing omits information about quarterly transactions because Buffett was granted permission to keep some moves confidential for now.
The U.S. Securities and Exchange Commission sometimes allows companies to withhold information from the public to limit copycat investing while a firm is building or cutting a position.
Berkshire slashed holdings in Eaton Corp., the Cleveland- based maker of circuit-breakers and fuel pumps, by 38 percent to 2 million shares.
Berkshire disclosed the Eaton stake last year.
Carmax, WellPoint
The firm also cut its stake in used-car dealer Carmax Inc. by 25 percent to 9 million shares, and reduced holdings of Home Depot Inc. by 25 percent to 2.76 million shares.
Berkshire reduced holdings of WellPoint Inc. 27 percent to 3.5 million shares and sold 24 percent of its shares in UnitedHealth Group Inc., lowering its total to 3.4 million shares.
Buffett, who is Berkshire’s chairman and chief executive officer, last week disclosed the sale of some of Berkshire’s ConocoPhillips shares in the quarter, and said the firm had divested an undisclosed number since June 30.
Berkshire said yesterday that the size of the stake had fallen 9.5 percent in the quarter. Buffett’s firm remains the oil producer’s second- largest shareholder, according to Bloomberg data.
A decline in the value of the ConocoPhillips holdings contributed to Berkshire’s worst quarterly loss in at least two decades in the first three months of 2009 as Buffett worked to recover from what he called his “major mistake” of buying shares with oil prices near their peak.
Berkshire said in a filing last week the sale of the securities at a loss may help recover $690 million in capital gains taxes paid in 2006.
American Express
The biggest holdings listed in Berkshire’s disclosure yesterday all rose in value in the second quarter. American Express Co. advanced 71 percent in the period.
Wells Fargo & Co. increased 70 percent, while Burlington Northern Santa Fe Corp. advanced 22 percent.
The firm’s single largest holding, Coca- Cola, climbed 9.2 percent.
Berkshire’s own shares passed $100,000 for the first time since January last week, recovering from a six-year low in March. The stock fell $750 to $101,400 yesterday.
Mutual funds and individual investors mimic the firm’s stock picks to duplicate Buffett’s investing success. An academic study in 2007 found that using this strategy for 31 years would have delivered annualized returns of about 25 percent, double the return of the Standard & Poor’s 500 Index.
Berkshire had also previously disclosed the sale of its stake in Constellation Energy Group Inc. Berkshire’s MidAmerican Energy Holdings Co. acquired the shares last year as part of a termination package when Constellation broke an agreement to sell itself to Buffett’s firm for $4.7 billion.
Yesterday’s filing lists equities traded on U.S. exchanges.
Buffett discloses other holdings in annual reports and filings with non-U.S. regulators.
Buffett Payouts Climb on Credit Swaps After Defaults (Update2)
Aug. 11 (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. had to increase payouts on credit derivatives backing junk debt as the recession forced more companies into default.
Berkshire paid about $825 million on the contracts in the second quarter and $350 million in July, compared with $675 million in the three months ended March 31, the company said in a regulatory filing last week. Buffett has paid out more than half of the $3.4 billion in upfront fees his Omaha, Nebraska- based firm got on the contracts through the end of 2008.
The 78-year-old billionaire’s bet that he could outwit traders he once derided as “geeks bearing formulas” may be foiled by the biggest surge in corporate failures since at least 1970 and a plunge in the amount investors recover after default. Buffett has said Berkshire may lose money on the derivatives tied to high-yield, high risk debt, which typically last about five years.
“We effectively had a near-collapse of the system and default rates spiked and recoveries were extremely low” after the failure of Lehman Brothers Holdings Inc. last September, said Mikhail Foux, a credit strategist at Citigroup Inc. in New York. “That effectively killed this strategy” used by Buffett.
Five-Year Contracts
At one point in 2005, Berkshire had been paid an average of 75 percent of the maximum loss upfront to take on such risk, according to Janet Tavakoli, founder of Tavakoli Structured Finance Inc. in Chicago, who wrote about Buffett’s credit swaps trades in her 2009 book “Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street.”
Recovery Rates
Smurfit-Stone
In January, six of the companies whose debt Berkshire had guaranteed defaulted, the company said in a filing, without naming the issuers. BH Finance LLC, a Berkshire unit, signed up for auctions in January allowing it to settle swaps linked to six borrowers including packaging-maker Smurfit-Stone Container Corp. and telephone-equipment company Nortel Networks Corp.
Sellers of swaps on Chicago-based Smurfit that signed up for the auction had to pay more than 91 cents on the dollar to settle the contracts. The payout on Nortel was 88 cents per dollar. During an auction to settle contracts on Lyondell Chemical Co., which BH Finance also signed up for, the payout was set at 84.5 cents. Junk bonds are those rated below Baa3 by Moody’s Investors Service and BBB- by Standard & Poor’s.
Berkshire paid $97 million on its high-yield swap contracts in 2008, when Buffett was more optimistic about his bet.
“I told you a year ago that I thought we would make money on those, but we have run into far more bankruptcies in the past year,” Buffett said in Omaha at Berkshire’s annual shareholder meeting in May. “I would expect those contracts to show a loss before investment income, and perhaps after.”
‘Mass Destruction’
Berkshire posted a $391 million second-quarter gain on all of its credit-default swaps trades, as the market value of the underlying debt improved. The figure may includes bets on investment-grade corporate bonds and states and municipalities, in addition to junk borrowers. In the first quarter, the swaps reduced earnings by about $1.3 billion.
Projecting Buffett’s future losses is difficult because he doesn’t name the companies on which he placed bets, disclose terms of his trades or say whether he has hedged against any losses, Foux said.
Buffett may have fared better than investors that made similar trades using benchmark indexes that are created by the banks that dominated trading in the credit-default swaps market. A trader that bought the riskiest piece of the Markit CDX North America High Yield Index Series 9, for example, already would have been wiped out, Foux said.
‘Mass Destruction’
Buffett participated in the market for derivatives including credit swaps after decrying them in a letter to shareholders in the 2002 annual report as “financial weapons of mass destruction” because investors were piling on a “massive amount of uncollateralized receivables” with the trades.
Berkshire demands that its trading partners pay upfront premiums and only a “small percentage” of the contracts require the firm to post collateral when the market moves against them, he said in his letter this year.
AIG, once the world’s largest insurer, was undone by its credit derivative bets because the New York-based company couldn’t meet collateral demands from trading partners after prices on the underlying debt plunged.
“Our derivatives dealings require our counterparties to make payments to us when contracts are initiated,” Buffett told shareholders in a letter in February. Berkshire “always holds the money.”
Aug. 11 (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. had to increase payouts on credit derivatives backing junk debt as the recession forced more companies into default.
Berkshire paid about $825 million on the contracts in the second quarter and $350 million in July, compared with $675 million in the three months ended March 31, the company said in a regulatory filing last week. Buffett has paid out more than half of the $3.4 billion in upfront fees his Omaha, Nebraska- based firm got on the contracts through the end of 2008.
The 78-year-old billionaire’s bet that he could outwit traders he once derided as “geeks bearing formulas” may be foiled by the biggest surge in corporate failures since at least 1970 and a plunge in the amount investors recover after default. Buffett has said Berkshire may lose money on the derivatives tied to high-yield, high risk debt, which typically last about five years.
“We effectively had a near-collapse of the system and default rates spiked and recoveries were extremely low” after the failure of Lehman Brothers Holdings Inc. last September, said Mikhail Foux, a credit strategist at Citigroup Inc. in New York. “That effectively killed this strategy” used by Buffett.
Buffett agreed in some trades to take the first losses if companies in high-yield indexes default, betting that upfront fees would exceed payments he had to make.
He said in letters to shareholders that traders relied on models that created “wildly mispriced” trades. Buffett manages the trades personally, he said in the 2006 annual report, and Berkshire may also profit from investing the premiums.
Five-Year Contracts
Buffett didn’t respond to requests for comment left with assistant Carrie Kizer.
He disclosed the latest figures on the swaps in an Aug. 7 filing in which Berkshire said that second- quarter net income gained 14 percent to $3.3 billion on separate derivatives tied to equity markets.
Berkshire typically guaranteed the debt of groups of 100 companies for five-year periods.
The first swap expires Sept. 20 and the last one matures in December 2013, Buffett said in his most recent annual letter. In a worst-case scenario, Berkshire would face a maximum of about $6.4 billion in additional payments, according to the Aug. 7 filing.
At one point in 2005, Berkshire had been paid an average of 75 percent of the maximum loss upfront to take on such risk, according to Janet Tavakoli, founder of Tavakoli Structured Finance Inc. in Chicago, who wrote about Buffett’s credit swaps trades in her 2009 book “Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street.”
Recovery Rates
Holders of debt issued by non-financial companies recovered an average of 45 percent during the past two recessions, according to Moody’s Investors Service.
That means Buffett in 2005 was getting paid an average 75 cents on the dollar to back bonds that, if they defaulted, typically lost 55 cents on the dollar during the last two slumps.
“People say he doesn’t understand derivatives,” Tavakoli said in an interview before the second-quarter results were announced.
“He very much does know what he’s doing, but you have to be aware in any investment, the best you can do is build in a margin of safety.”
Historical assumptions failed in the crisis that toppled Lehman, pushed insurer American International Group Inc. to the brink of bankruptcy and sunk the global economy into the worst recession since the 1930s.
Swaps sellers had to pay an average of 83.4 cents on the dollar to settle contracts on 26 companies this year, according to data from Markit Group Ltd. and Creditex Group Inc., which administer the auctions in which dealers set the payout levels. That means the recovery averaged 16.6 cents.
Smurfit-Stone
In January, six of the companies whose debt Berkshire had guaranteed defaulted, the company said in a filing, without naming the issuers. BH Finance LLC, a Berkshire unit, signed up for auctions in January allowing it to settle swaps linked to six borrowers including packaging-maker Smurfit-Stone Container Corp. and telephone-equipment company Nortel Networks Corp.
Sellers of swaps on Chicago-based Smurfit that signed up for the auction had to pay more than 91 cents on the dollar to settle the contracts. The payout on Nortel was 88 cents per dollar. During an auction to settle contracts on Lyondell Chemical Co., which BH Finance also signed up for, the payout was set at 84.5 cents. Junk bonds are those rated below Baa3 by Moody’s Investors Service and BBB- by Standard & Poor’s.
Berkshire paid $97 million on its high-yield swap contracts in 2008, when Buffett was more optimistic about his bet.
“I told you a year ago that I thought we would make money on those, but we have run into far more bankruptcies in the past year,” Buffett said in Omaha at Berkshire’s annual shareholder meeting in May. “I would expect those contracts to show a loss before investment income, and perhaps after.”
‘Mass Destruction’
Berkshire posted a $391 million second-quarter gain on all of its credit-default swaps trades, as the market value of the underlying debt improved. The figure may includes bets on investment-grade corporate bonds and states and municipalities, in addition to junk borrowers. In the first quarter, the swaps reduced earnings by about $1.3 billion.
Projecting Buffett’s future losses is difficult because he doesn’t name the companies on which he placed bets, disclose terms of his trades or say whether he has hedged against any losses, Foux said.
Buffett may have fared better than investors that made similar trades using benchmark indexes that are created by the banks that dominated trading in the credit-default swaps market. A trader that bought the riskiest piece of the Markit CDX North America High Yield Index Series 9, for example, already would have been wiped out, Foux said.
‘Mass Destruction’
Buffett participated in the market for derivatives including credit swaps after decrying them in a letter to shareholders in the 2002 annual report as “financial weapons of mass destruction” because investors were piling on a “massive amount of uncollateralized receivables” with the trades.
Berkshire demands that its trading partners pay upfront premiums and only a “small percentage” of the contracts require the firm to post collateral when the market moves against them, he said in his letter this year.
AIG, once the world’s largest insurer, was undone by its credit derivative bets because the New York-based company couldn’t meet collateral demands from trading partners after prices on the underlying debt plunged.
“Our derivatives dealings require our counterparties to make payments to us when contracts are initiated,” Buffett told shareholders in a letter in February. Berkshire “always holds the money.”
Berkshire е увеличил присъствието си в здравния сектор
16 август, 2009
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Berkshire Hathaway Inc отчете в доклада си пред Комисията по борсите и ценните книжа в петък увеличение на дела си с 1,2 милиона акции в Becton Dickinson & Co, както и нарастване на този в Johnson & Johnson, като компанията на Бъфет очевидно е увеличила участието си в сектора на здравеопазването.
Делът в Becton Dickinson & Co е оценен на 85,6 милиона долара към 30 юни. Компанията, базирана в Бектън, Ню Джърси произвежда спринцовки и медицинско оборудване.
Berkshire са добавили и покупката на 4,4 милиона акции на Johnson & Johnson известни с продукти от шампоани до комплексни биотехнологични стоки. Делът на Berkshire в компанията се увеличава до 36,91 милиона акции на стойност от 2,1 милиарда долара.
Компанията на Бъфет е придобила и по-малки дялове в половин дузина компании, сред които здравните застрахователи UnitedHealth Group Inc. и WellPoint Inc.
Стойността на портфолиото на Бъфет в листвани в САЩ компании нараства с 20% през второто тримесечие, спрямо предходното до 40,87 милиарда долара. Акциите на две от компаниите в него – American Express Co и Wells Fargo & Co нарастват съответно със 71 и 70%.
Berkshire в последно време правеше по-малко инвестиции в акции и повече в облигации, в това число и общински дълг. Миналата седмица компанията обяви, че през второто тримесечие е продала акции на стойност 254 милиона долара и е инвестирала 1,93 милиарда в ценни книжа с фиксирана лихва. Berkshire инвестираха и 3 милиарда долара в Dow Chemicals за да подпомогнат придобиването от нея на химическата компания Rohm & Haas Co.
За последната година компанията на Бъфет купи конвертируеми акции и облигации от General Electric, Goldman Sachs, Swiss Re и производителя на мотори Harley Davidson, както и от компанията за луксозни бижута Tiffany&Co – всички с доходности от поне 10%.
16 август, 2009
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Berkshire Hathaway Inc отчете в доклада си пред Комисията по борсите и ценните книжа в петък увеличение на дела си с 1,2 милиона акции в Becton Dickinson & Co, както и нарастване на този в Johnson & Johnson, като компанията на Бъфет очевидно е увеличила участието си в сектора на здравеопазването.
Делът в Becton Dickinson & Co е оценен на 85,6 милиона долара към 30 юни. Компанията, базирана в Бектън, Ню Джърси произвежда спринцовки и медицинско оборудване.
Berkshire са добавили и покупката на 4,4 милиона акции на Johnson & Johnson известни с продукти от шампоани до комплексни биотехнологични стоки. Делът на Berkshire в компанията се увеличава до 36,91 милиона акции на стойност от 2,1 милиарда долара.
Компанията на Бъфет е придобила и по-малки дялове в половин дузина компании, сред които здравните застрахователи UnitedHealth Group Inc. и WellPoint Inc.
Стойността на портфолиото на Бъфет в листвани в САЩ компании нараства с 20% през второто тримесечие, спрямо предходното до 40,87 милиарда долара. Акциите на две от компаниите в него – American Express Co и Wells Fargo & Co нарастват съответно със 71 и 70%.
Berkshire в последно време правеше по-малко инвестиции в акции и повече в облигации, в това число и общински дълг. Миналата седмица компанията обяви, че през второто тримесечие е продала акции на стойност 254 милиона долара и е инвестирала 1,93 милиарда в ценни книжа с фиксирана лихва. Berkshire инвестираха и 3 милиарда долара в Dow Chemicals за да подпомогнат придобиването от нея на химическата компания Rohm & Haas Co.
За последната година компанията на Бъфет купи конвертируеми акции и облигации от General Electric, Goldman Sachs, Swiss Re и производителя на мотори Harley Davidson, както и от компанията за луксозни бижута Tiffany&Co – всички с доходности от поне 10%.
Неделя, 26 Юли 2009 13:31
Най-богатият човек в света Уорън Бъфет прогнозира отслабване на долара в дългосрочен план. Според него безпрецедентните мерки, предприети от Федералния резерв на САЩ за възстановяване на икономиката, ще доведат до инфлация и до отслабване на щатската валута, пише Daily Telegraph, цитирайки интервю на милиардера.
"След 10 години с долара ще могат да се купуват по-малко неща отколкото сега. Това ще бъде следствие от сегашните ни действия, но не означава, че те са грешни. Ние постъпваме правилно, но действията ни ще имат последствия.", заяви Мъдрецът от Омаха.
Изказването му е по повод участието му в нов анимационен сериал, който ще се разпространява по интернет. Целта на филма е да научи новото поколение американчета да поемат финансови отговорности.
Инвеститорът се е съгласил да озвучава анимацията, чийто прототип ще бъде той самият в сериала Secret Millionaire's Club. Всеки епизод ще е с продължителност от 3 до 5 минути.
"Трудно ще намерим по-добро време от сегашното, за да научим децата на финансова отговорност", заяви Бъфет./Deltanews
Най-богатият човек в света Уорън Бъфет прогнозира отслабване на долара в дългосрочен план. Според него безпрецедентните мерки, предприети от Федералния резерв на САЩ за възстановяване на икономиката, ще доведат до инфлация и до отслабване на щатската валута, пише Daily Telegraph, цитирайки интервю на милиардера.
"След 10 години с долара ще могат да се купуват по-малко неща отколкото сега. Това ще бъде следствие от сегашните ни действия, но не означава, че те са грешни. Ние постъпваме правилно, но действията ни ще имат последствия.", заяви Мъдрецът от Омаха.
Изказването му е по повод участието му в нов анимационен сериал, който ще се разпространява по интернет. Целта на филма е да научи новото поколение американчета да поемат финансови отговорности.
Инвеститорът се е съгласил да озвучава анимацията, чийто прототип ще бъде той самият в сериала Secret Millionaire's Club. Всеки епизод ще е с продължителност от 3 до 5 минути.
"Трудно ще намерим по-добро време от сегашното, за да научим децата на финансова отговорност", заяви Бъфет./Deltanews
Неделя, 26 Юли 2009 13:31
Най-богатият човек в света Уорън Бъфет прогнозира отслабване на долара в дългосрочен план. Според него безпрецедентните мерки, предприети от Федералния резерв на САЩ за възстановяване на икономиката, ще доведат до инфлация и до отслабване на щатската валута, пише Daily Telegraph, цитирайки интервю на милиардера.
"След 10 години с долара ще могат да се купуват по-малко неща отколкото сега. Това ще бъде следствие от сегашните ни действия, но не означава, че те са грешни. Ние постъпваме правилно, но действията ни ще имат последствия.", заяви Мъдрецът от Омаха.
Изказването му е по повод участието му в нов анимационен сериал, който ще се разпространява по интернет. Целта на филма е да научи новото поколение американчета да поемат финансови отговорности.
Инвеститорът се е съгласил да озвучава анимацията, чийто прототип ще бъде той самият в сериала Secret Millionaire's Club. Всеки епизод ще е с продължителност от 3 до 5 минути.
"Трудно ще намерим по-добро време от сегашното, за да научим децата на финансова отговорност", заяви Бъфет./Deltanews
Най-богатият човек в света Уорън Бъфет прогнозира отслабване на долара в дългосрочен план. Според него безпрецедентните мерки, предприети от Федералния резерв на САЩ за възстановяване на икономиката, ще доведат до инфлация и до отслабване на щатската валута, пише Daily Telegraph, цитирайки интервю на милиардера.
"След 10 години с долара ще могат да се купуват по-малко неща отколкото сега. Това ще бъде следствие от сегашните ни действия, но не означава, че те са грешни. Ние постъпваме правилно, но действията ни ще имат последствия.", заяви Мъдрецът от Омаха.
Изказването му е по повод участието му в нов анимационен сериал, който ще се разпространява по интернет. Целта на филма е да научи новото поколение американчета да поемат финансови отговорности.
Инвеститорът се е съгласил да озвучава анимацията, чийто прототип ще бъде той самият в сериала Secret Millionaire's Club. Всеки епизод ще е с продължителност от 3 до 5 минути.
"Трудно ще намерим по-добро време от сегашното, за да научим децата на финансова отговорност", заяви Бъфет./Deltanews
Уорън Бъфет продава енергийни компании
15.08.2009 16:56
Известният инвестиционен гуру Уорън Бъфет е изкупил милиони акции на компании от сектора на здравеопазването през последните месеци. Междувременно неговата инвестиционна компания Berkshire Hathaway е продавала книжа на енергийни дружества, предаде CNN.
Освен това Уорън Бъфет е закупил 1,2 млн. акции на производителя на лабораторно оборудване Becton Dickinson, а е продал всичките си 14,8 млн. акции от капитала на компанията за комунални услуги Constellation Energy.
15.08.2009 16:56
Известният инвестиционен гуру Уорън Бъфет е изкупил милиони акции на компании от сектора на здравеопазването през последните месеци. Междувременно неговата инвестиционна компания Berkshire Hathaway е продавала книжа на енергийни дружества, предаде CNN.
Най-голямата инвестиция на Berkshire Hathaway през второто тримесечие е покупката на близо 4 млн. акции на производителя на лекарства и потребителски стоки Johnson & Johnson.
По този начин делът на Бъфет в капитала на Johnson & Johnson се повишава до 37 млн. акции.
Освен това Уорън Бъфет е закупил 1,2 млн. акции на производителя на лабораторно оборудване Becton Dickinson, а е продал всичките си 14,8 млн. акции от капитала на компанията за комунални услуги Constellation Energy.
Berkshire Hathaway се разделя и с близо 7 млн. акции от всичките си 63 млн. акции от капитала на производителя на енергия ConocoPhillips.
Наскоро стана ясно, че Бъфет е намалил и своя дял в международната агенция за кредитен рейтинг Moody’s със 17%.
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