Buffett’s Favorite Words

In March, data scientist Michael Toth conducted a sentiment analysis on Warren Buffett’s annual letter to Berkshire Hathaway shareholders (dated from 1977 to 2016) to identify the billionaire’s most commonly used positive and negative words. This according to a CNBC article posted in June. The top six unique words, according to Toth’s findings, are (in this order): Loss Gain Worth Significant Debt Outstanding According to the article, “Although two of those words have negative associations—loss and debt—Toth found a surprising explanation as to why those landed on Buffett’s list of most utilized words.” Toth underscores Buffett’s tendency to focus on […]

26189827 - checklist paper and pen

Building an Investment Checklist

By John P. Reese —  In this year’s letter to Berkshire Hathaway shareholders, Warren Buffett refers to the conglomerate’s “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” An article in the Wall Street Journal last month titled, “Warren Buffett’s Berkshire Moves Away from Stock Picking,” underscores the shift in the context of the conglomerate’s offer to purchase power-transmission firm Energy Future Holdings for $9 billion in cash. But the two activities are really horns on the same goat, and together represent what Buffett later calls a “two-pronged approach” […]

Timeless Quotes and Lessons for Every Investor from Buffett

An article in Yahoo Finance from earlier this year outlines a list of iconic quotes and lessons from billionaire investing legend Warren Buffett. Here are a few: Investing isn’t too complicated but know what you’re investing in—”You don’t have to be an expert on every company or even many,” he says, adding, “You only have to be able to evaluate companies within your circle of competence.” If you’re buying stocks, you shouldn’t want prices to keep rising—”Prospective purchasers,” says Buffett, “should much prefer sinking prices.” If you can’t afford it, don’t buy it. “I will guarantee you,” Buffett asserts, “if […]

blur-1853262_640

Investing Like Buffett Means More is Not Always Better

By John P. Reese —  When Warren Buffett was a kid, he liked to read. More than most kids. And we’re not talking comic books and bubble gum wrappers, either. He once recalled receiving the World Almanac as a gift when he was a young boy. “It was like heaven to me,” he says. Is it a coincidence that this voracious reader became one of the most successful investors of all time? Maybe not. When asked about the key to his success, Buffett puts reading at the top of the list. “That’s how knowledge works,” he said, “It builds up, […]

Buffett and Berkshire Focusing More on Running Businesses than Stock-Picking

In his February letter to shareholders, Warren Buffett wrote that Berkshire Hathaway is seeing a “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” This according to a Wall Street Journal article from earlier this month. The trend is being underscored by the company’s recent bid to purchase the bankrupt power-transmission company Energy Future Holdings Corp. (including utility company Oncor) for $9 billion. The shift began in 1999, the article says, with Berkshire’s first utility purchase, and gained steam with the conglomerate’s acquisition of Burlington Northern Santa […]