December 6, 2007:
Compliments of
Portfolio.com...The
Evolution of an Investor
by Michael Lewis
March 4, 2006
Berkshire Hathaway Inc.
2005 Annual Report
Compliments of the Wall
Street Journal....
Highlights From Buffett's Letter
October 28, 2005
I thought you might be interested in this paper
that was just recently released
Imitation Is The Sincerest Form Of Flattery:
Warren Buffett and Berkshire Hathaway
“The mean (median) annualized returns for the stock
investments in Berkshire’s portfolio from 1980 to
2003 are an extraordinary 39.38% (19.92%).”
For the life of me I can’t understand why more
institutional investors don’t emulate the Buffett/Munger
methodology/philosophy.
The numbers are unbelievable. Not to say that one
could match such a performance but the ODDS of
beating the benchmark by a significant margin are
that much higher (obviously).
I guess it boils down to the “interpretation” of
risk and volatility as well as the “institutional
imperative”.
In the paper they try to question whether it was
luck or skill by using statistical analyses…..
reminds me of Buffett’s “Graham and Doddsville”
essay which I try to read every so often (and which
I’m sure you’ve read):
The Superinvestors of Graham-and-Doddsville
by Warren E. Buffett
August 19, 2005
Compliments of our friend Mark Hugh Sam with Sellers
Capital in Chicago...
Very instructive how Bill Gates runs his personal
portfolio--about 50% in top 2 holdings (ex MSFT).
June 11, 2005
Compliments of
Welling@Weeden
ADHD...
Time Horizons & Underperformance By James Montier
June 9, 2005
An Interview with Warren Buffett in 1974
May 9, 2005
More great stuff from Dr Bob...John, some good
comments and quotes here:
Compliments of Morningstar...
Gems from the Berkshire Hathaway Meeting
May 9, 2005
Compliments of Dr
Bob...John, 82.5% of this fund is in cash. Here’s a
good quote:
“Long term investment success
requires discipline and patience. While these principals
of
investing are difficult for most to exercise, those that
do can reap tremendous rewards. Our
approach to money management is simple. We look to
achieve the highest total return with the
least amount of risk. Our first preference is to buy
stocks at deep discounts relative to their private
market (intrinsic) values, as this offers us the
greatest potential return over the long run.
However, when stocks are expensive, we look toward bonds
to increase total return. If neither
stocks nor bonds offer favorable return potential, cash
becomes the investment of choice until
better opportunities arise. Simply put, we invest where
we find the greatest value.”
Arnold
Van Den Berg's Annual Report
May 4, 2005
From the Wall Street Journal -
Buffett & Buffett
May 2, 2005
What the Oracle of Omaha is doing speaks volumes...
Berkshire Hathaway’s Pension Fund Allocation
So basically, Warren Buffett’s own pension plan currently has 33% of it’s
assets in cash and cash equivalents, 28% in US Government bonds and
only 12% in equities!
Now how many $3 Billion pension funds do you see with these types of
allocations? Keeping in mind that $3 Billion is not a lot of money,
particularly when you are Warren Buffett.
Weighted Average Assumptions Used In Determining Future Benefits Obligations
He still sees about 6.5% return on his pension fund assets over the long term.
Also, if he is using a discount rate of 5.9% for plan assets is he
revealing what rate he uses to discount future cash flows for all the
businesses he analyzes?
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