Bonds supporters aren't happy with Warren Buffett, as the Oracle of Omaha has let it be publicly known that at the yields offered, along with the growing risk, he isn't interested in buying any bonds. He even went so far as to say "bonds really should come with a warning label."
One of the premiere experts in bonds - Pacific Investment Management Co.'s Bill Gross - in January, raised his holdings in Treasuries to the highest level since summer 2010, rebalancing the portfolio.
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Showing posts with label Warren Buffett Advice. Show all posts
Showing posts with label Warren Buffett Advice. Show all posts
Saturday, June 1, 2013
Tuesday, May 28, 2013
Warren Buffett on Opportunities in Europe
Most of us know Warren Buffett has the uncanny ability to see value where others don't, and over the last year, he recently said in an interview with CNBC, that he has been buying equities in Europe.
Before we get into that, another element that is extremely important in the success of Warren Buffett is the way he successfully recognizes the low range of a good entry point. I'm not talking about market timing here, but his understanding of the season of time companies are at bargain rates. In his view, Europe has been in that season of time, and many stocks there remain cheap.
Thursday, September 23, 2010
Warren Buffett: Still in a Recession, Will be "for Awhile"
It was good to hear Warren Buffett admit we are still in a recession, and that we're not going to get out of if "for awhile."
Many analysts and commentators have been slapped down by Buffett's comments, as they have taken any positive bit of economic news and spun it into a real recovery.
Buffett noted at the Burlington Northern Santa Fe railroad owned by Berkshire Hathaway (NYSE:BRK-A), that they were only back to 61 percent of capacity from before the recession, and that is their best performer.
He added that it is probably performing better than the vast majority of businesses in the U.S. at this time, giving somewhat of a loose measure as to where things are at.
Responding to the assertion the recession was over last year by the National Bureau of Economic Research, Buffett rightly laughed, saying "they define it differently" then he does.
His definition of the recession is this: "I define it, I think we're in a recession until real per capita GDP gets back up to where it was before. That is not the way the National Bureau of Economic Research measures it. But I will tell you that to any, on any common sense definition, the average American is below where he was before, or his family, in terms of real income, GDP. We're still in a recession. And, and we're not gonna be out of it for awhile..."
Unfortunately, Buffett continues to adhere to his Keynesianism economic theory, saying the stimulus from the government was the right thing to do, even with the devastation it will cause our children and grandchildren, as well as us.
Buffett said, "And, and basically, the government did the right thing in terms of getting the economy going again."
Amazing that he can be so right concerning the economy and so wrong concerning the outright failed stimulus from the Obama Administration.
Many analysts and commentators have been slapped down by Buffett's comments, as they have taken any positive bit of economic news and spun it into a real recovery.
Buffett noted at the Burlington Northern Santa Fe railroad owned by Berkshire Hathaway (NYSE:BRK-A), that they were only back to 61 percent of capacity from before the recession, and that is their best performer.
He added that it is probably performing better than the vast majority of businesses in the U.S. at this time, giving somewhat of a loose measure as to where things are at.
Responding to the assertion the recession was over last year by the National Bureau of Economic Research, Buffett rightly laughed, saying "they define it differently" then he does.
His definition of the recession is this: "I define it, I think we're in a recession until real per capita GDP gets back up to where it was before. That is not the way the National Bureau of Economic Research measures it. But I will tell you that to any, on any common sense definition, the average American is below where he was before, or his family, in terms of real income, GDP. We're still in a recession. And, and we're not gonna be out of it for awhile..."
Unfortunately, Buffett continues to adhere to his Keynesianism economic theory, saying the stimulus from the government was the right thing to do, even with the devastation it will cause our children and grandchildren, as well as us.
Buffett said, "And, and basically, the government did the right thing in terms of getting the economy going again."
Amazing that he can be so right concerning the economy and so wrong concerning the outright failed stimulus from the Obama Administration.
Friday, June 11, 2010
Warren Buffett on the Next Financial Crisis
While testifying before the FCIC last week on unrelated matters, Warren Buffett of Berkshire Hathaway (NYSE:BRK-A) fame was asked about where he sees the next financial crisis in the United States coming from, and while it wasn't surprising to me because I've known the risks for some time, it could be enlightening for those who aren't aware of it at this time.
Buffett's response? Municipal bonds.
The problem is the same reasoning behind the current economic crisis and debt load, is the same reason for the upcoming bursting of the muni-bond bubble, and that is the complete and irresponsible spending by politicians who refuse to say no.
Worse than that, it's the usual entitlement spending which the government is locked into which is unsustainable, but again, the politicians refuse overall to stop these types of programs, cut taxes, and encourage the private sector to take care of things.
According to George Soros, he said a couple of months ago, that the best way to invest in relationship to this situation is to go "short on bonds by buying a CDS contract carries." He added it would almost guarantee "unlimited profit potential."
Buffett's response? Municipal bonds.
The problem is the same reasoning behind the current economic crisis and debt load, is the same reason for the upcoming bursting of the muni-bond bubble, and that is the complete and irresponsible spending by politicians who refuse to say no.
Worse than that, it's the usual entitlement spending which the government is locked into which is unsustainable, but again, the politicians refuse overall to stop these types of programs, cut taxes, and encourage the private sector to take care of things.
According to George Soros, he said a couple of months ago, that the best way to invest in relationship to this situation is to go "short on bonds by buying a CDS contract carries." He added it would almost guarantee "unlimited profit potential."
Tuesday, April 6, 2010
Warren Buffett's Huge Dividend Income
Warren Buffett Dividends
Warren Buffett is not only one of the greatest investors of all time, but, and most people don't know or recognize this: he is one of the great marketers as well.
When I say he's one of the great marketers, I'm talking about personal branding and the image he portrays.
Buffett knows the envy rampant in the world concerning wealthy people, and wisely he cultivates a persona of humility and commonality that the regular person relates to, and forgives of Buffett what they won't forgive of most other people, and that is that he's rich.
Beyond that, and probably more important than that, is the way Buffett portrays himself as a free market capitalist, when in fact he's not close to that, but rather is a strong proponent of big government and socialist programs, which have emerged in his public responses to the actions of the U.S. government under Obama.
Now even hear it's hard to tell if Buffett really believes the things he says, as the canny investor thoroughly understands what he's up against with potential government interference, and is an expert at saying the right things at the right time for the benefit of himself and Berkshire Hathaway (NYSE:BRK-A).
For example, read through his quarterly reports on the Internet and see how many times he supports heavy taxation, or other times he's encouraged the death tax to be rescinded for those who are far less wealthy than himself, and which would devastate family wealth.
These are done from personal beliefs, but also from expediency in regard to shoring up the socialist idea that the wealthy should share the wealth with everyone through forced distribution, rather than pass it on to their family, or whoever or whatever they want to.
Anyway, the point is Warren Buffett while marketing himself as a low-income CEO making only $100,000 a year, doesn't bother revealing he makes millions a quarter on dividends he receives from personal investments.
At the end of 2008, Buffett had made $15.5 million for that quarter, the highest level, which of course went down in the midst of the economic crisis and some of his holding cutting their dividend rates.
Even so, think of how much that is for Buffett, who has cultivated the persona of being a thrifty guy in relationship to his money.
while he is that outwardly, he definitely makes far more money that most people know, and many of his outward expressions are part of the role he plays to protect Berkshire Hathaway.
Do I begrudge Buffett this? Not at all. I'm just saying he's far more canny than given credit for, and the things he says and moves he makes is far beyond simple investing, but takes into account the many forces in the world envious and ready to take the wealth from the deserving and transfer it to the underserving.
Buffett has battled this over the year, but unfortunately, in my opinion, has harmed capitalism and free markets from catering to the political crowd in a way that is beneficial for him, but not necessarily for his competitors and other business owners.
Warren Buffett is not only one of the greatest investors of all time, but, and most people don't know or recognize this: he is one of the great marketers as well.
When I say he's one of the great marketers, I'm talking about personal branding and the image he portrays.
Buffett knows the envy rampant in the world concerning wealthy people, and wisely he cultivates a persona of humility and commonality that the regular person relates to, and forgives of Buffett what they won't forgive of most other people, and that is that he's rich.
Beyond that, and probably more important than that, is the way Buffett portrays himself as a free market capitalist, when in fact he's not close to that, but rather is a strong proponent of big government and socialist programs, which have emerged in his public responses to the actions of the U.S. government under Obama.
Now even hear it's hard to tell if Buffett really believes the things he says, as the canny investor thoroughly understands what he's up against with potential government interference, and is an expert at saying the right things at the right time for the benefit of himself and Berkshire Hathaway (NYSE:BRK-A).
For example, read through his quarterly reports on the Internet and see how many times he supports heavy taxation, or other times he's encouraged the death tax to be rescinded for those who are far less wealthy than himself, and which would devastate family wealth.
These are done from personal beliefs, but also from expediency in regard to shoring up the socialist idea that the wealthy should share the wealth with everyone through forced distribution, rather than pass it on to their family, or whoever or whatever they want to.
Anyway, the point is Warren Buffett while marketing himself as a low-income CEO making only $100,000 a year, doesn't bother revealing he makes millions a quarter on dividends he receives from personal investments.
At the end of 2008, Buffett had made $15.5 million for that quarter, the highest level, which of course went down in the midst of the economic crisis and some of his holding cutting their dividend rates.
Even so, think of how much that is for Buffett, who has cultivated the persona of being a thrifty guy in relationship to his money.
while he is that outwardly, he definitely makes far more money that most people know, and many of his outward expressions are part of the role he plays to protect Berkshire Hathaway.
Do I begrudge Buffett this? Not at all. I'm just saying he's far more canny than given credit for, and the things he says and moves he makes is far beyond simple investing, but takes into account the many forces in the world envious and ready to take the wealth from the deserving and transfer it to the underserving.
Buffett has battled this over the year, but unfortunately, in my opinion, has harmed capitalism and free markets from catering to the political crowd in a way that is beneficial for him, but not necessarily for his competitors and other business owners.
Wednesday, March 10, 2010
Jim Rogers' Investing Preparation
Jim Rogers Investment Preparation
Investor Jim Rogers said in response to a recent question on the Greek sovereign-debt debacle, what he is looking for to be sure things don't get out of control over there. His answer was telling as to the reasons behind his investment success.
Rogers said that he tries to watch as much of the world as he is possibly able to in order to make the most informed decisions.
This reminds me of how Warren Buffett studies the books and reports of companies he is looking at. One time someone mentioned he reads them like pulp ficton. And he does.
Many times when investors like Jim Rogers and Warren Buffett seem to be moving by instinct or some inner sense, the reality is they've honed their senses by their endless homework, and so when they make their share of right investment choices, it seems they have some type of gift or inner sight, when they are just the hardest workers out there in their respective fields, and the results prove they are.
Jim Rogers Investment Preparation
Investor Jim Rogers said in response to a recent question on the Greek sovereign-debt debacle, what he is looking for to be sure things don't get out of control over there. His answer was telling as to the reasons behind his investment success.
Rogers said that he tries to watch as much of the world as he is possibly able to in order to make the most informed decisions.
This reminds me of how Warren Buffett studies the books and reports of companies he is looking at. One time someone mentioned he reads them like pulp ficton. And he does.
Many times when investors like Jim Rogers and Warren Buffett seem to be moving by instinct or some inner sense, the reality is they've honed their senses by their endless homework, and so when they make their share of right investment choices, it seems they have some type of gift or inner sight, when they are just the hardest workers out there in their respective fields, and the results prove they are.
Jim Rogers Investment Preparation
Friday, October 17, 2008
Warren Buffett: Now is one of Best Times to Buy into U.S. Stock Market
One of the many things Warren Buffett is known for saying, is to "be fearful when others are greedy, and be greedy when others are fearful." In our lifetimes, this is one of the most significant times where that saying has more meaning than ever.
We do have to keep one thing in mind right now before going ahead, and that is the U.S. government is now using Warren Buffett as a mouthpiece to calm the markets down and hopefully bring investors back to equities in order to get some money flowing. So everything he says in these areas has to be taken with that as a backdrop.
Even so, what Buffett is saying about this being a great time to invest in American publicly-held companies is true.
This difficult market has one great value for investors: it exposes the weak as well as the solid companies, so what to look for when considering investing in U.S. companies at this time is really simple - don't invest in companies that are highly-leveraged, and look for those with strong competitive advantage. These companies will perform strongly in the next 10 to 20 years.
The current discount on some of the better companies in America make this one of the most ideal times to expand our ownership in companies.
As Buffett has always said, over the short run, there's no way anybody can know how a company will do, but keeping in mind the competitive advantage and companies without too much debt, we will do good over the long haul.
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