Category Archives: Berkshire Hathaway

Warren Buffett Is 60% Cash: Is a Stock Market Crash Coming?

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Dear Mr. Market:

A few months ago, when the hype machine was redlining over the SpaceX IPO, we wrote about the dangers of chasing glamorous narratives on day one. We noted how easy it is to get blinded by shiny, new tech stories while glossing over basic valuation rules. We love the excitement of a hot market.

But while the retail crowd is busy looking for spaceships, the most successful investor in human history is quietly building a fortress out of boring, old-fashioned greenbacks.

Lately, you’ve given the financial media a lot of ammunition, Mr. Market. The talking heads are looking at Berkshire Hathaway’s balance sheet and shouting from the rooftops. Under the strategic guidance of chairman Warren Buffett and CEO Greg Abel, the cash hoard has climbed to an astronomical $397.4 billion.

Naturally, the “perma-bears”…or those we affectionately call the “Broken Clock Club” (because they’re guaranteed to be right twice a day)…are having a absolute field day. They point frantic fingers at Berkshire’s $400 billion mountain of cash and Treasury bills, screaming, “Look! Even Buffett is hoarding cash because the bubble is about to pop!”

It sounds logical. But it’s a total mirage.

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RIP Charlie Munger : Farewell to an Icon of Investing

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Dear Mr. Market:

In the world of finance and investing, the passing of a visionary figure leaves an indelible mark on the landscape they helped shape. Today, we bid farewell to an icon, a man whose wisdom and wit transcended the realms of business and life itself. Charlie Munger, the renowned investor, philanthropist, right hand man of Warren Buffett and Vice Chairman of Berkshire Hathaway, passed away today, but his legacy endures through the profound insights he shared with the world.

Charlie Munger was a man who not only navigated the complexities of the financial world but also imparted invaluable lessons on success, rationality, and the pursuit of knowledge. Join us as we explore the essence of Charlie Munger’s wisdom through ten of our favorite quotes he shared over his 99 years of life:

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Warren Buffett’s Baby

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Buffett2Dear Mr. Market:

This past weekend, the investment world descended on Omaha, Nebraska; best known perhaps as the hometown of one of the most successful investors in the world. Warren Buffett, also known as the “Oracle of Omaha”, will be hosting investors at the annual Berkshire Hathaway shareholders meeting. The schedule is filled with presentations, shopping & dining experiences, and social interactions that will be the highlight for many individual investors.

The investment community has been fascinated with Warren Buffett for his colorful comments and impressive track record. He has proven to be a in a class all by himself looking for good companies at an attractive price and has never been scared to be a contrarian. Flipping through the pages of the 2014 Berkshire Hathaway Annual Report, we can’t help but notice that many of the principles Buffett applies to prospective investments are now making his own company look very attractive.

The class ‘B’ shares of Berkshire Hathaway (BRK.B) currently trade at $141.21 per share while the ‘A’ shares trade for an impressive $213,400 per share! Through the first four months of the year BRK.B is down -5.93% while the S&P 500 is up 1.3%. Buffett has been quoted as saying, “price is what you pay, value is what you get.” Last year (2014) the S&P 500 delivered an impressive 13% and BRK.B doubled that, rewarding investors with a 26% return for the year. Continue reading →