A Little-Known Buffett Home Run

Long before Berkshire Hathaway became the acquisition behemoth it is today, Warren Buffett was primarily involved in the insurance business. That hasn’t changed, and these operations have been some of his biggest and most successful ventures. In an article for CNBC, Validea CEO John Reese describes how the Oracle’s foresight back in the 1970s led to a relatively unknown but impressive investment win. Insurance companies rely heavily on data for their risk analysis and pricing. Back when Buffett was trying to build strong businesses, he joined a consortium of large insurers to form Verisk Analytics (whose name combines the Latin […]

Berkshire’s Close-Ended Investment Model – Simple and Successful

Every year, droves of shareholders attend the Berkshire Hathaway annual meeting, some lining up before sunrise to get front row seats. The high point of the event is the question-and-answer session with Warren Buffett and Charlie Munger, celebrities in the investment world. It makes perfect sense that attendees want to pick the brains of these market moguls. They have enjoyed enormous success with the simple, closed-end fund strategy of establishing close engagements and long-term commitments with well-run, fundamentally strong companies. Buffett isn’t a fan of micro-managing his acquisitions. He leaves that to the folks who have been doing it well […]

Top Value Investor Chris Davis on the Value in Financials

Chris Davis, chairman of the value investing shop, Davis Advisors, and portfolio manager of multiple Davis funds including the Davis Financial Fund, talks about a wide range of investing topics with WealthTrack’s Consuelo Mack.  One of the key points he makes early in the interview is that financial firms with the right culture and the right business can be “compounding machines” over many years or decades. Many financials are growth stocks disguised as a value stocks, says Davis. Davis explains there is a secular opportunity in financials, because of their long term growth prospects, but a cyclical opportunity exists as […]

Fidelity Manager Shares Top Lessons Learned from his Berkshire Pilgrimage

Jamie Harmon, Portfolio Manager of Fidelity Advisor Small Cap, shared some takeaways from his 18 years of attendance at the Berkshire Hathaway annual meeting. In an interview with Andrew Daniels of Morningstar, Harmon said, “I think the thing that I really focused on from this year is the importance of great management and how they [i.e. Buffett and Munger] try to find great management in the companies that they buy, and they try to nourish and encourage great management that they already have.” When asked how he handles short term fluctuations in stock price, he said, “I try not to […]

All Things Buffett

In the spirit of Berkshire’s Hathaway’s annual meeting this weekend, we thought it would be good to put together a list of articles and links that may be interesting for Buffett followers. We’ll continue to update this from time to time as we find interesting Buffett-related commentary. Berkshire Hathaway’s annual letters (1977-2015) – Buffett’s shareholder letters are jam-packed with Buffett wisdom. Must-reads. If you don’t have the $219,000 to put up for Berkshire’s A shares, the company’s B shares are another option. WSJ has a good read on the creation of that class of stock. Ever wanted to track Berkshire’s […]