Posts Tagged ‘Buffett’

Warren Buffet and Charlie Munger Give Advice

  Two of the richest men in the world, and the brains behind Berkshire Hathaway. I’m a big believer in behavioral finance, and that our behavior many times is the deciding factor whether we’re successful or not. I like this quote from Warren Buffet Temperament is more important than IQ. You need reasonable intelligence, but you absolutely have to have the right temperament. Otherwise, something will snap you. Click on the above video, and click on the below link for the full article Buffet and Munger Advice – Full Article   Read More

Betting Against the Crowd

Here’s a good paper that studies returns going back to 1920 to see how buying a country, company, or industry that has had a decline of 60% or more does for the next 3 years. Basically it’s saying there’s validity to Warren Buffet’s phrase “be greedy when others are fearful and fearful when others are greedy.” Of course, there were notable exceptions to the rule, but an interesting article and study nonetheless. Betting Against the Crowd   Read More

Rail Traffic Continues to Soften

One of the mostly closely watched barometers for Warren Buffett is the level of rail traffic.  He believes that it’s a leading indication of how much productivity is going to happen in the future as goods are transferred across the U.S.  It’s currently still in traditional “expansion” territory, but it’s been weakening over the past year or so.  In my opinion, it’s reflecting the ho-hum economy we’ve all been experiencing. I’ll continue to watch it closely, as one of the variables to what may be in our economic future. Full Article   Read More

5 Worst Market Calls for 2011

Even the best can make bad calls. Warren Buffett buying Bank of America? Woops. Bill Gross betting against Treasuries? Yikes. John Corzine? John Paulson? Both very wrong in their market calls. You’ve heard me over past 3 years talk about humility and diversification. My 21 years in the business has taught me that the investment, sector, stock, etc. that I absolutely love is still the one I need to calmly and rationally buy in an amount that I’m willing to be really wrong in and cut my losses quickly if necessary. Even the best can make bad calls. Click for ... Read More

Housing is in a Depression

While I’ve mentioned in the previous blog that the economy is not quite as bad as everyone is led to believe (still not rosy though), one area that has been particular hurt is residential housing. If you’ve been following my blogs you know I’ve been saying this for quite some time. Here’s a good article where Warren Buffett says exactly that. I knew I liked that guy. CLICK FOR BUFFETT: HOUSING IS IN A DEPRESSION   Read More

Buffett: “The Lower Stocks Go, The More I Buy”

FORTUNE — “There is no comparison between fear and greed,” Warren Buffett is telling me over the phone from Omaha. “Fear is instant, pervasive and intense. Greed is slower. Fear hits,” he exclaims. I am NOT recommending a wholesale purchase of equities, but rather use this quote from the article below as a reminder how the professional investors think.  You have to keep your emotions in check to the best of your ability. Buffett-link Read More

Buffett’s Favorite Valuation Metric

I’m a big fan of Warren Buffett (as many of you know) as I admire his intellect, drive, and humility. There’s a reason he’s in the top 5 richest in the world. Warren Buffett has a chart that he’s described as his favorite. It’s the total valuation of the stock market versus the Gross National Product of the US. What is it telling us now? A = Stocks are modestly expensive. Should you sell everything to cash? A = No. It does, however, tell us to be very cautious going forward and watch the percentage we have allocated to the ... Read More

Don’t Buy What You Don’t Understand

If you’ve been reading my blogs and watching my videos religiously, I not only love you, but you’ll also know that I’m a big Warren Buffet fan. One piece of sage advice he has given that I agree with is “don’t buy something you don’t understand”. In this week’s video, I expand upon that and talk about how I was once pitched one of the instruments that lead to the financial disaster of 2008. It just didn’t make sense to me, so I didn’t recommend it to clients. Be sure you have good transparency, understanding, and a tolerance for the ... Read More

Warren Buffett’s Worst Trade & Biggest Mistake

I love Warren Buffett. He has such wisdom and humility that I count him as one of my business heroes. What can we learn from him today? How about from his biggest mistake?  CLICK FOR FULL ARTICLE – WARREN BUFFETT’S WORST TRADE & BIGGEST MISTAKE Read More

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