Tag Archives: Warren Buffett

J.C. Penney Becomes Oversold

By DividendChannel.com

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more

Source: FULL ARTICLE at Forbes Markets

Elizabeth Arden is Now Oversold

By DividendChannel.com

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more

Source: FULL ARTICLE at Forbes Markets

RSI Alert For Jive Software

By DividendChannel.com

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more

Source: FULL ARTICLE at Forbes Markets

Dell Getting Very Oversold

By DividendChannel.com

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more

Source: FULL ARTICLE at Forbes Markets

Optimer Pharmaceuticals Becomes Oversold

By DividendChannel.com

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more

Source: FULL ARTICLE at Forbes Markets

RSI Alert For CYS Investments

By DividendChannel.com

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more

Source: FULL ARTICLE at Forbes Markets

Philanthropic Colonialism Not Working For You? Try Funded Infrastructure

By Roger Kay, Contributor

In an OpEd piece in the New York Times on Friday, Peter Buffett, son of Warren Buffett, wrote a brave piece about today’s charitable circuit (The Charitable-Industrial Complex).  He was willing to say things that others might not because of his peculiar position. …read more

Source: FULL ARTICLE at Forbes Latest

Bill Gates And Me: The Myth Of Corporate "Give-Back"

By August Turak, Contributor

I am thrilled that Bill Gates and Warren Buffett are busily giving away their wealth through charity. It is especially laudable that they are giving it away before they die rather than set up perpetual foundations as monuments. But despite these feelings, I take issue with those who feel that Gates has a moral obligation to “give-back.” It’s as if he stole his wealth and now must humbly make restitution for his crimes through charity. Bill Gates and many entrepreneurs like him often help their fellow man far more through their business success than they can through charity, and I am a living case study for my argument. …read more

Source: FULL ARTICLE at Forbes Latest

Did Warren Buffett Just Become The World’s Biggest Spammer?

By Floyd Brown

buffett SC Did Warren Buffett Just Become the Worlds Biggest Spammer?

There’s a spam email zipping around the internet that purports to be a congressional reform plan from Warren Buffett.

The problem is, the email – like so many internet missives – is full of misleading half-truths. So I wanted to set the record straight and give you a plan that would actually work to reform our broken system.

In actuality, the Buffett Plan would reform congressional budgeting – not Congress itself. He explained it during an interview on CNBC in 2011.

The outline of his proposal is relatively simple. Here’s what Buffett said: “I could end the deficit in five minutes. You just pass a law that says that any time there’s a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election. Yeah, yeah, now you’ve got the incentives in the right place, right? (Laughs).”

Buffett understands that working with politicians is all about incentives; and today, all the incentives are wrong. Buffett understands that what motivates members of Congress is re-election. If you want to balance the budget, just tie successful budgeting to re-election.

An Insider at Heart

Most Americans don’t remember him, but Warren Buffett’s father was a Republican congressman from Omaha. So when Buffett talks about Congress, he has an insider’s view of how the institution really works. And his budget reform plan creates the incentives necessary to make the institution work.

The incentives for members of Congress are currently upside-down. To get re-elected, congressmen spend nearly half their time raising money. To raise money, they spend hours making calls and attending events with the special interest representatives who grease the campaigns’ wheels with money.

As a result, legislation is full of crony capitalism and special interest goodies.

But with the Buffett plan, we’d get the deficit under control and likely balance the budget. And to further reform Congress, I believe we should make a few additional changes to the business of influence peddling (also known as lobbying.) You see, the most popular gig for former members of Congress is to become a lobbyist.

My first reform would be to close this revolving door by instituting a lifetime ban that keeps members of Congress from becoming lobbyists.

After former member lobbyists, the next group to join the profession in droves is congressional staff. I would also ban former staff members from lobbying their former bosses. Currently, this is one of the dirtiest secrets in Washington. You see, lobbying firms target specific congressmen. And the firms love to hire the former staff assistants of their target congressmen, giving the firm direct access to the people they’re trying to influence.

If you work for Senator X or Congressman Y, you shouldn’t be allowed to come back to your old boss and lobby him or her.

To make this ban work, we’d need to require “Lobbying Entities” to report on the former members of Congress and former congressional staff whom they employ. And that could be done with a simple website.

It All Comes Full Circle

Next, we should stiffen fines for violating the lobbying regulations. Violations should be …read more

Source: FULL ARTICLE at Western Journalism

3 Beach Reads That Will Make You a Way Better Investor

By Michael Lewis

Best investing books

Filed under: , ,

AOL

For those who have had the pleasure of completing an undergraduate finance program, it is a mild surprise (to say the least) to find that the real world of finance and investing is quite different from the efficiency-laden lessons of academia.

While this is frustrating to those who paid the price in time an tuition, it should be encouraging to the average investor who has no formal education in the subject. The truth is, right now, retail stock pickers have the same tools and tricks available to them as the world’s most successful investors.

So, in the spirit of summertime leisure, here is a hot list of books for investors that will get you on par with the very best.

The Classic Text

To recommend “The Intelligent Investor” is by no means a novel idea (pun absolutely intended), but it is, by far, the greatest quick read on the subject of stock picking. Written by Warren Buffett‘s mentor, Benjamin Graham, “The Intelligent Investor” provides the mental lattice all investors would do well to cling to.

Sure, the book champions value investing, which is not the only way to invest, but it can help investors of all kinds — even those interested in the next big technology winner.

Graham spells out the difference between speculation and investing — a concept that is often cited but which few seem to truly espouse. The Columbia professor and investing guru uses the allegory of Mr. Market to describe the battiness of the public markets, and how you can use that to your advantage.

While academic finance touts Efficient Market Theory — the idea that securities are priced with near perfection at all times — Graham posits nearly the opposite: Stocks can fall out of favor for reasons that do little to reflect the intrinsic value of a company — creating a price rift. Graham, Buffett, and the majority of the world’s greatest stock pickers believe that stocks drift toward that intrinsic number over time. Their track records support the claim.

With clear explanations of concepts such as margin of safety and defensive investing, “The Intelligent Investor” should be No. 1 on every investor’s reading list.

The Everyman Investor’s Bible

Peter Lynch, vice chairman of Fidelity’s investment advisory and former manager of the Fidelity Magellan Fund — the strongest performer of its (and his) kind from 1977 to 1990 — is great at writing simple, actionable investment lessons.

“One Up on Wall Street” is the shining example on the subject of DIY investing.

Though “The Intelligent Investor” is itself a very readable, simple book, Lynch’s classic explains in plain language strategies you may already employ. For example, Lynch loves “buy what you know,” the art of walking down the street and observing which brands are moving fast and which stores have lines …read more

Source: FULL ARTICLE at DailyFinance

Doc suspected in Omaha killings waives extradition

A physician suspected in four slayings in Nebraska and arrested in southern Illinois is waiving extradition and will return to Omaha to face murder charges.

Unshaven and wearing grey striped scrubs and orange slippers, Anthony Garcia offered only short responses during Wednesday’s brief court appearance in Union County.

“Absolutely, yes,” he said when asked by Circuit Judge Mark Boie if he was returning to Nebraska voluntarily and understood a one-page extradition waiver.

A lawyer for the 40-year-old from Terre Haute denied the allegations.

“My client steadfastly professes his innocence,” said Bob Motta, who along with his wife Alison, is representing Garcia in the extradition case and his prosecution in Nebraska. “The game is afoot. The state (Nebraska) has a heavy burden and we’re going to put it to the test.”

Motta declined to go into details of the Nebraska case following Wednesday’s 15-minute hearing in Jonesboro. But he bristled at suggestions by Nebraska authorities that Garcia showed traits of a serial killer, calling that “patently absurd.”

Garcia was arrested in Illinois on Monday after a traffic stop and was being held without bond.

It was unclear when Garcia will return to Omaha; Nebraska officials will have to travel to Illinois to accompany him back. Union County assistant state’s attorney Kelley Zuber told the judge that Nebraska authorities said they would collect Garcia within two weeks. Union County Sheriff David Livesay told The Associated Press after the hearing that he did not expect the transfer to happen on Wednesday.

Garcia is accused of killing four people with ties to a Nebraska medical school that fired him more than a decade ago. The slayings took place in two separate attacks five years apart.

His arrest came two months after Creighton professor Roger Brumback was fatally shot and his wife stabbed to death in their Omaha home. Back in 2008, the son of another pathology professor, William Hunter, and his housekeeper were stabbed to death in an affluent Omaha neighborhood near the home of billionaire Warren Buffett.

Brumback and Hunter fired Garcia, who’s been denied a medical license in at least two states.

Neither police nor Creighton officials have detailed …read more

Source: FULL ARTICLE at Fox US News

‘Giving With Purpose’ Online Course Featuring Warren Buffett Will Let Students Give Money Away

By The Huffington Post News Editors

OMAHA, Neb. — A free online course that starts Monday will offer students the chance to learn about giving from Warren Buffett and help decide how to spend more than $100,000 of his sister’s money.

More than 4,000 people have already signed up for the course that will also feature philanthropic advice from baseball legend Cal Ripken Jr. and the founders of Ben & Jerry’s ice cream, Ben Cohen and Jerry Greenfield. Boston Red Sox Chairman Tom Werner and journalist Soledad O’Brien are other featured guests. The amount being given away could grow if more students sign up.

Read More…
More on Education

…read more

Source: FULL ARTICLE at Huffington Post

1 Dividend Stock Every Investor Should Own

By John Maxfield, The Motley Fool

Filed under:

It’s easy to lose sight of the purpose of investing. Despite what CNBC might lead you to believe, investing is not about adroitly maneuvering in and out of the market on a daily, if not hourly, basis trying to beat the pros. The only one that gets rich when you do this is your broker — ever wonder why brokerage commercials show people with home offices far nicer than yours?

The true purpose is instead much more pedestrian in nature — as billionaire George Soros has been known to say, “If investing is entertaining, if you’re having fun, you’re probably not making any money.” First and foremost, the purpose of investing is to preserve your hard-earned capital against inflation. And beyond this, it’s to generate a respectable return.

So how do you go about doing this?

Most people think the way to do so is to pick great stocks. I would agree, with a caveat.

Picking individual stocks that don’t put your capital at undue risk while also offering a reasonable return is hard. Anybody who leads to you believe otherwise has no idea what they’re talking about. What do you think the world’s greatest investors do all day? Here’s a hint: They don’t have day jobs — or, rather, their day jobs revolve exclusively around investing.

It’s easy for people like Peter Lynch, the longtime manager of Fidelity’s Magellan Fund, to proclaim that you should “invest in what you know,” or for Warren Buffett, the greatest investor of all time (click here to see Buffett’s 10 largest stock holdings), to quip that you should “be fearful when others are greedy and greedy when others are fearful,” but the fact of the matter is that these guys didn’t get rich by following cliches. They got rich by spending countless hours studying the companies behind the stocks they invested in — or, perhaps more importantly, didn’t invest in.

With this in mind, here’s something else Lynch has said: “If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.” I don’t know if you play poker, but your odds aren’t very good if you don’t know what’s in your hand.

If you nevertheless want to go down this path, subscribe to our Stock Advisor newsletter service. That’s a shameless pitch, I know. But hear me out. It’s run by demonstrated winners who, as far as I can tell, spend the vast majority of their waking hours reading up on, researching, and thinking about great companies. And they have the results to back it up. Since starting the service in 2002, their picks have returned 105%, outperforming the S&P 500 by 69%.

In the event you’re not convinced — and given my obvious bias, I couldn’t blame you — here’s what I recommend: Buy index funds, and exchange-traded funds in particular (click here to

Source: FULL ARTICLE at DailyFinance

6 Ways Berkshire Could Fail

By Steve Symington, The Motley Fool

Filed under:

As highly as we Fools think of Warren Buffett and Berkshire Hathaway , we’d be foolish (with a lower-case “f”) to believe any company is truly without risk.

With that in mind, here are six ways Berkshire could potentially fail investors going forward:

1. Losing to the market on Buffett’s terms
Over the years, Buffett has largely made his name by identifying stocks whose share prices have lagged the intrinsic value of their underlying businesses. As a result, it should come as no surprise that Buffett believes the best way to measure Berkshire’s performance is by calculating its book value.

Sure enough, as I noted last month, Buffett himself lamented Berkshire’s respectable 2012 book value growth of 14.4% as “subpar” after it fell short of the S&P 500’s 16% gain.

What’s more, while Buffett has helped Berkshire’s book value per share rise an astounding 586,817% over the past 48 years (seriously — that’s no typo!), he readily admits that, with Berkshire’s enormous capital base, its book value per share going forward will probably have a hard time increasing “at a rate even close to its past rate.”

2. Losing to the market on Mr. Market’s terms
Even if Berkshire’s book value per share manages to outpace the broader market‘s return, you can bet that if the share price lags, many fickle investors still won’t be patient enough to wait for the price to catch up with the value of the business.

Of course, that is part of why it’s so hard to be a value investor, but the fact remains that there will be more years during which Berkshire Hathaway stock will lag the market. For example, look at how much faster Berkshire’s book value has increased relative to both its share price and the S&P 500 over the past five years:

BRK.B Total Return Price data by YCharts

While this isn’t necessarily Berkshire’s fault, you can bet many investors will inevitably perceive it as a failure.

3. Failure to maintain superior management
As Peter Lynch once said, “Go for a business that any idiot can run — because sooner or later, any idiot probably is going to run it.”

Before you go yelling “Blasphemy!” from the rooftops, I’m all too aware that Berkshire’s current management team is as solid as they come. Heck, there are at least six people with whom I wouldn’t be surprised should they be chosen as Buffett’s eventual successor.

Until that time comes, however, nobody can be positive that Berkshire’s future management team will be able to even partially replicate the success of the unrivaled team that is Buffett and Charlie Munger. 

Without a doubt, Buffett has done marvelously well investing both Berkshire’s shareholder equity and insurance float in stocks. Over the years, Buffett has amassed enormous positions in now-legendary stocks such as Coca-Cola , American Express , Wells Fargo , and Procter & Gamble . Sure enough, take a look at what Buffett’s patience had achieved with these four stocks as of the end of

Source: FULL ARTICLE at DailyFinance

7 Reasons to Sell Berkshire Hathaway

By John Maxfield, The Motley Fool

Filed under:

When I was asked to write this piece for our ongoing series on Berkshire Hathaway‘s annual meeting, I struggled to come up with seven legitimate reasons to sell the Omaha, Neb.-based company. After thinking it over, however, I believe I’ve drawn up a list of factors that fits the bill. To be clear, there’s little about Berkshire that leads me to believe it’s a “sell” right now. But that’s not to say this won’t change in the not-too-distant future.

1. Warren Buffett
If Buffett had it his way, he’d probably run Berkshire forever. But he doesn’t. And in last year’s annual letter to shareholders, the Oracle of Omaha assured investors that the board of directors has not only picked a successor (“an individual to whom they have had a great deal of exposure and whose managerial and human qualities they admire”) but that they’ve identified two “superb backup candidates” as well.

This may be so, but the fact remains that Berkshire won’t be the same without Buffett. Aside from his ethereal ability to grow and manage an increasingly massive conglomerate, Buffett has become a magnate for deals. When Solomon Brothers fell on hard times, who’d they call? When Long-Term Capital Management nearly imploded, Buffett was among the first to offer assistance. And when Goldman Sachs and Bank of America needed to reassure the market of their respective solvencies, it was Buffett who came to the rescue.

The point is that people go to Berkshire because of Buffett. This is equally true for companies that are looking to sell as it is for companies like Goldman and Bank of America that simply need a temporary stamp of approval. And, in return, Buffett ensures that Berkshire is more than adequately compensated for any offer of assistance.

2. Size
Success can be both a blessing and a curse. The blessing comes on the way up, as companies establish themselves, gain momentum, and grow at spectacular rates of speed. But at some point, they become so large that the growth rate necessarily decelerates. We’ve seen this with the greatest of American companies recently, including Chipotle and Apple . And Berkshire is no exception.

What started as a modest textile business has grown into one of the largest industrial conglomerates in the world. It’s the fifth largest publicly traded company in the United States by market capitalization, behind only ExxonMobil, Apple, Google, and Microsoft, respectively. In his most recent letter to shareholders, Buffett acknowledged the pressure this puts on Berkshire’s growth through acquisition strategy: “Because of our present size, making acquisitions that are both meaningful and sensible is now more difficult than it has been during most of our years.”

Will Berkshire continue to grow? Yes. Will it continue to do so at the same speed? No. It’s just an arithmetic reality that its growth rate will plateau.

3. Recent performance
The curse of size appears already to be exerting its

Source: FULL ARTICLE at DailyFinance

What Value Does Warren Buffett See in Solar?

By Travis Hoium, The Motley Fool

Filed under:

Solar power has a growing presence in the U.S., which can be a contentious topic after a few high-profile failures in the industry. But Warren Buffett, arguably the best investor of our time, had invested billions of dollars in the industry long before most investors started making such bets. Why is he investing in solar when others are questioning it? Here’s a peak into what Buffett sees in solar.

On a quest for yield
Warren Buffett isn’t making just any investment in solar. Berkshire Hathaway‘s subsidiary MidAmerican Energy is buying huge solar projects with long-term power purchase agreements. As these projects generate electricity the contracted utility pays a set rate per kilowatt hour, which is negotiated long before a project is ever built. Since the cost of the project is fixed when Buffett buys it and the cash flows are easily predictable, in essence, Buffett is buying an asset similar to a bond, something he is very comfortable with.

The size of the investments Buffett is making is what makes his fascination with solar astounding. He owns two projects built by First Solar , including 49% of Agua Caliente, which he co-owns with NRG Energy , and a third project called Antelope Valley, the largest solar power plant in the world, which is currently under construction by SunPower .

 

Builder

Project Size

Cost

Ownership

Agua Caliente 

First Solar

290 MW

$1.8 billion

49%

Topaz 

First Solar

550 MW

$2 billion

100%

Antelope Valley 

SunPower

579 MW

$2.5 billion

100%

An investor as conservative as Warren Buffet wouldn’t make $5.4 billion in total investments in solar if he couldn’t reasonably predict the costs and revenue associated with such projects. That’s the big development in solar over the past half-decade, the industry can now build predictable models for projects all around the world, making it an investment even Warren Buffett could love.

Tax benefits
Another thing Buffett likes about solar is the tax benefits that come with it. Once these solar projects are completed Berkshire Hathaway will be eligible for a 30% investment tax credit, which he can write off against profits elsewhere in the business.

Solar projects are also eligible to be written off more quickly than most capital investments. Under federal law, Berkshire Hathaway can depreciate these projects over just five years with what’s called the Modified Accelerated Cost-Recovery System. This means that Buffett will save money on taxes in the first five years that the projects are on the books and, in turn, pay more in taxes later in the project’s life. The amount of taxes paid won’t change (assuming there is no change in policy), but for a business paying taxes later is always better than paying taxes earlier.  

Investments only Warren Buffett can make
The other big benefit Warren Buffett has over you and me is his ability to borrow

From: http://www.dailyfinance.com/2013/04/17/what-value-does-warren-buffett-see-in-solar/

How "60 Minutes" Killed HMA

By David Williamson, The Motley Fool

Filed under:

In early December, 60 Minutes aired a segment called “Hospitals: The Cost of Admission.” It relentlessly went after Health Management Associates over its admissions practices, so it shouldn’t be completely surprising that when the company previewed its first-quarter numbers, admissions fell. This caused a 16% plunge in HMA and sparked a hospital sector sell-off. In this video, Fool health-care analyst David Williamson discusses what this means for investors heading into earnings season.

What macro trend was Warren Buffett referring to when he said “this is the tapeworm that’s eating at American competitiveness”? Find out in our free report: “What’s Really Eating At America’s Competitiveness.” You’ll also discover an idea to profit as companies work to eradicate this efficiency-sucking tapeworm. Just click here for free, immediate access.

The article How “60 Minutes” Killed HMA originally appeared on Fool.com.


David Williamson has no position in any stocks mentioned.
Follow David on Twitter: @MotleyDavid.

The Motley Fool recommends UnitedHealth Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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