Stock Market logoStock Market Station

All the stock market news, every minute updated!

28 July 2021
18:06 hour

Warren Buffett’s investing style and the S4 Capital share price

The Motley Fool UK

21/07/2021 - 18:51

Warren Buffett has an investment thesis about advertising agencies. Here our writer considers its relevance for the S4 Capital share price. The post Warren Buffett’s investing style and the S4 Capital share price appeared first on The Motley Fool UK.


READ THE FULL ARTICLE ON THE MOTLEY FOOL UK

Related headlines:

  1. Warren Buffett’s Berkshire Hathaway share price over $4,21,000; Nasdaq can’t take a rise for long (07/05/2021 - Financial Express)
    Warren Buffett's Berkshire Hathaway Inc share price has risen to over $4,21,000 per Class A share. But, the stock’s impressive 41-year run may soon come to a screeching halt, if the US stock exchange Nasdaq doesn’t upgrade its computer systems soon.
    [visit article]
  2. Warren Buffett on when to sell & hold a stock! [Investing advice from Warren Buffett] (19/04/2021 - Reddit Stock Market)
      submitted by   /u/andystacks [link]   [comments]
    [visit article]
  3. Warren Buffett’s top stocks zoom 50% this year, delivered $192 billion gains last year; which ones do you own? (26/07/2021 - Financial Express)
    Warren Buffett, CEO of Berkshire Hathaway, holds an impressive investing record. The company delivered an annual average return of 20 per cent since 1965
    [visit article]
  4. Chamath Palihapitiya called himself a "Buffett's disciple" & he truly is, he applies all Buffett's best of investing strategies into his style of investing in tech companies. Check out his opinion on Tesla. His networth (20/03/2021 - Reddit Stock Market)
      submitted by   /u/valueinvestor1508 [link]   [comments]
    [visit article]
  5. Warren Buffett's Biggest Winners (09/03/2021 - Reddit Stocks)
    Warren Buffett's Berkshire Hathaway Portfolio has 7 stocks that have increased by over 50% over the past 52 weeks including RH (+152%), GM (+91%), UPS (+76%), STNE (+73%), AAPL (+62%), KHC (+56%), AMZN (+55%). What do you all think will be Warren's next addition to Berkshire?   submitted by   /u/mansoortaken [link]   [comments]
    [visit article]
  6. Warren Buffett’s Berkshire Hathaway bought these 3 stocks while sold Apple, bank shares (22/02/2021 - Financial Express)
    Often called The Oracle of Omaha, Warren Buffett’s investments are followed closely by investors across the globe.
    [visit article]
  7. Warren Buffett's 7 Investing Rules! [Great Advice on Investing in Stocks!] (12/04/2021 - Reddit Stock Market)
      submitted by   /u/andystacks [link]   [comments]
    [visit article]
  8. Why Warren Buffett wants to stay away from bitcoin even as cryptocurrency has grown 6X in 5 months (20/03/2021 - Financial Express)
    “There’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything,,” according to Warren Buffett.
    [visit article]
  9. How to build a portfolio like Warren Buffett with UK shares (25/06/2021 - The Motley Fool UK)
    Warren Buffett, as most investors will know, invests primarily in the US. But the Sage of Omaha, as he’s known, has though invested in the UK before, notably in Tesco. He also seemed to back Kraft Heinz’s attempted purchase of Unilever back in 2017. To many investors, especially those who focus on value, he’s one of the greatest investors that has ever lived. So, what lessons can be gleaned from Buffett’s success? How can an ordinary investor build a portfolio of UK shares using his principles? Warren Buffett’s margin of safety The margin of safety has always been critical to Warren Buffett’s investment thinking and remain sstoday. It’s something that has stayed with him throughout his long and hugely successful investing career. The term was critical to the investment principles of his mentor Benjamin Graham, well known as a deep value investor. In short, it means investing in companies below their true worth.  The tricky part is finding companies like that. There are a few shortcuts I’d use if I wanted to find companies that have a margin of safety. The most obvious would be to use the P/E ratio. If it compares well to competitors and to the market as a whole, this could be a sign of value. A low P/E in itself though isn’t enough. I would want to see lots of current assets, ideally cash as well on the balance sheet. This means the company should be able to pay its debts. I’d buy UK shares with current ratios (that is, current assets divided by current liabilities) of two or over. Investing in great companies at a fair price One of the biggest developments in Buffett’s investing journey was to go from picking the very cheapest companies with the widest margin of safety to picking high-quality companies when they were trading more cheaply. The change in approach is credited to his business partner, Charlie Munger.  I’d adopt this approach when it comes to building a portfolio of UK shares. It’s often possible to hear private investors saying “buy the dip”. It means buy when prices are falling. At the end of the day, investing comes down to the central idea of buying low and (eventually) selling high. In practice, to do this can be tricky. To help me succeed I keep a list of stocks that I think fit the mould of being high quality. This involves having a competitive advantage, growing sales, high or improving margins, high returns on capital employed and being better run than other stock market listed competitors. Then I set up price targets or buy orders. With my stockbrokers, I have orders automatically set up for when a stock hits a certain price. This will allow me to pick up the shares when they’re at a value I like. The risk here is I might pick up the shares just as they announce bad news. Overall, to build a portfolio of UK shares with Warren Buffett’s advice and style in mind I would look to buy when there’s a margin of safety in the share price. I would also focus on high-quality companies with a durable competitive advantage and then buy them at what I’d consider to be a fair price. The post How to build a portfolio like Warren Buffett with UK shares appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The GSK share price: 3 things that could give it a boost Best stocks to buy now: a top share I’d buy with £2k 3 top penny stocks to buy in a Stocks and Shares ISA this July If I had £1k to invest, I’d buy these FTSE 100 shares Why is the Darktrace share price rising? Andy Ross owns no share mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
    [visit article]
  10. Warren Buffett 'broke' Nasdaq: system is unable to record high Berkshire Hathaway share price (07/05/2021 - Reddit Stock Market)
      submitted by   /u/Illustrious_Welder94 [link]   [comments]
    [visit article]
  11. Here’s how I think Warren Buffett would invest £1,000 in FTSE 100 stocks right now (16/07/2021 - The Motley Fool UK)
    Warren Buffett is one of the greatest investors of our generation, with a net worth over $100bn. One of the points that makes him so compelling to listen to is his wealth of experience. After all, he’s been investing for over 70 years. He’s been successful during this period as well, and he has seen crashes come and go, boom periods and wild rides in the market. Given his investing philosophy, here’s what I think he might do with £1,000 right now. Warren Buffett’s nuggets of wisdom As a large disclaimer before we get going, I have not spoken to Warren Buffett and so cannot say for certain that this is what he would do! But what I can do is look at the advice he has given in the past and apply that to today. For example, Buffett once commented that “risk comes from not knowing what you’re doing”. So when it comes to investing £1,000 into FTSE 100 stocks, I need to do my homework. Randomly picking stocks could present a high risk as I wouldn’t know why I was investing in them specifically. So before I make any investments, I make sure that I’ve read up on the company. I want to be comfortable with the outlook and also happy that I can afford the amount that I’m thinking of investing. From here, I look to apply his advice when he mentioned that “it’s not necessary to do extraordinary things to get extraordinary results”. Particularly with the retail investing boom of the past couple of years, I think many investors try and overcomplicate things.  Although I wouldn’t simply buy a FTSE 100 tracker with my £1,000 to get extraordinary results, I wouldn’t try and be too clever either. Buying half a dozen stocks from a mix of different sectors should give me the opportunity to have a shot at beating the index. Staying nimble Finally, I actually think that Warren Buffett would keep a small amount of the £1,000 in cash, waiting for opportunities. This is based on the most famous quote of his that investors should be “fearful when others are greedy and greedy when others are fearful”. At the moment, I don’t think investors in the FTSE 100 are fearful or greedy. But as the stock market crash last spring showed, things can change very quickly. Therefore, keeping some cash on the side in case we see another market blip is a good idea. When others become fearful and panic-sell stocks, it often can lead those stocks to be undervalued. With liquid cash, this can allow me to be greedy and snap them up. There are other elements that I’m sure Warren Buffett would want to include in a FTSE 100 stock portfolio. But in terms of some guiding principles, I think his quotes give me a good idea of where to begin. The post Here’s how I think Warren Buffett would invest £1,000 in FTSE 100 stocks right now appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading 2 penny stocks to buy right now Can I buy shares in Zomato? Best stocks to buy now: 2 income shares The Gym Group’s share price is rising. Should I buy the stock now? Why did the Avast share price explode this week? jonathansmith1 has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
    [visit article]
  12. How to Teach Yourself Investing - Warren Buffett (11/04/2021 - Reddit Stock Market)
      submitted by   /u/thegreenwaves [link]   [comments]
    [visit article]
  13. : Early Tesla backer and top fund manager attacks Warren Buffett’s strategy. Here’s his investing advice. (14/05/2021 - Market Watch)
    James Anderson says to forget value investing and be ready for stomach-churning swings in stock prices.
    [visit article]
  14. Passive income investing: 2 pieces of advice from Warren Buffett (20/04/2021 - The Motley Fool UK)
    Generating income via dividends from stocks is one of the most appealing ways for me to build wealth. There are plenty of ideas out there to look at for passive income investing. And in this regard, I often listen to Warren Buffett’s pearls of wisdom. I tie his ideas in to dividend stocks and income investing, to help me hopefully pick the best ones to reach my goals. Playing the long game As someone who has been investing successfully longer than I’ve been alive, Warren Buffett is clearly someone to listen to. As it turns out, longevity is one of the things that makes passive income investing work. Buffett once said that “someone’s sitting in the shade today because someone planted a tree a long time ago.” What he meant by this is that good things can take time to happen, but the end result is well worth the time. It’s the same with getting dividends from stocks. For example, I might be aiming to make £1,000 a month in passive income. With a small pot to begin with, this isn’t going to happen overnight.  I’ll have to regularly invest small amounts so that over several years, my investment pot will be large enough to give me a yield to equate to £1,000 a month. But once I’ve got there, it’ll be worth the wait. Looking for sustainable passive income  Warren Buffett once commented that “risk comes from not knowing what you’re doing”. This can be applied to many situations in investing, especially when targeting passive income.  The tendency for a new investor might be to simply buy shares in companies that have the highest dividend yields. If it was me, I might reason that I’d  get the highest income that way.  In reality, companies with the highest dividend yields often carry the highest level of risk of a dividend cut. This is because the yield could look high just because the share price is falling. After all, a lower share price makes the dividend per share a larger proportion overall. If I didn’t know this or hadn’t done my research on the share price, I could make a bad call here. To deal with this, I just need to make sure I’m not focused solely on the monetary dividend values for passive income investing. It also needs to be about the company. What are the prospects for 2021? How has the business coped with the pandemic? In this way, the dividends I get paid will be more sustainable, even if it means taking a slightly lower dividend yield. Overall, by looking at the thoughts of Warren Buffett, I can give myself a better shot at making my passive income investing strategy a success. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Can I get a mortgage without a deposit? Should I buy Argo Blockchain shares at the current price? The FTSE 100 has hit 7,000. Here are 4 reasons I think it could rise further 2 cheap penny stocks and 1 FTSE 100 share to buy in my ISA! 2 penny stocks to buy in a Stocks and Shares ISA today jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Passive income investing: 2 pieces of advice from Warren Buffett appeared first on The Motley Fool UK.
    [visit article]
  15. : Warren Buffett says he’s halfway to giving away most of his fortune (24/06/2021 - Market Watch)
    Buffett has also resigned from the board of the Gates Foundation. Bill Gates said he was grateful for Buffett's 'enduring friendship.'
    [visit article]
  16. Warren Buffett admits mistake of 2016 cost Berkshire Hathaway $11-bn loss; again out of $100-bn wealth club (13/03/2021 - Financial Express)
    Warren Buffett became the sixth member of the $100 billion club, after his total wealth crossed $100 billion during the week, according to the Bloomberg Billionaire Index.
    [visit article]
  17. Warren Buffett is giving away billions (26/06/2021 - The Motley Fool UK)
    Making billions is quite an accomplishment. Giving that money away is probably quite tough to do. But that’s exactly what billionaire investor Warren Buffett is doing. Let’s take a look at how much he’s giving away to charity and why he’s doing it. [top_pitch] Who is Warren Buffett? An original believer in value investing, Warren Buffett has made a lot of money through being a smart investor. The wealth he’s amassed has made him one of the richest people in the world. A lot of the wealth he’s created has been as a major shareholder in his investment company Berkshire Hathaway. But now, at the ripe old age of 90, Buffett has decided to give away a lot of the money that he’s built up over his lifetime. Why is Warren Buffett giving away money? In a recent statement, Buffett explained his reasons for giving away a lot of his wealth: “Over many decades I have accumulated an almost incomprehensible sum simply by doing what I love to do. I’ve made no sacrifice nor has my family. “Compound interest, a long runway, wonderful associates and our incredible country have simply worked their magic. Society has a use for my money; I don’t.” This isn’t the first time he’s given away a big chunk of money in the form of Berkshire Hathaway shares. He’s one of around 200 billionaires who signed ‘The Giving Pledge’. These billionaires stated that they would donate huge amounts of their wealth. In 2006, Buffett revealed he would give away all of his shares, which is equal to 99% of his net worth. How much is he giving away? Buffett’s donation to charities is equal to roughly £2.9 billion worth of Berkshire Hathaway shares. Back in 2006, Warren Buffett owned a total of 474,998 shares in the business. This recent donation takes him midway to his goal of giving away all of his shares, leaving him with 238,624 shares. So we can expect this philanthropy to continue as he goes through the motions of relieving himself of all his wealth and stock over the coming years. [middle_pitch] Who is he giving the money to? The donation of stock will be going towards five foundations: Bill & Melinda Gates Foundation Susan Thompson Buffett Foundation Sherwood Foundation Howard G. Buffett Foundation NoVo Foundation How can I follow in the footsteps of Warren Buffett? Giving away a lot of money is a noble act. But in order to do something like this, you first need to build the wealth to give away! One of the best ways of creating multi-generational wealth is through investing. Following Buffett’s example, you can use a share dealing account to invest in solid businesses that you think will be around for decades to come. There are plenty of different ways to invest. All investing carries risk, but some methods are riskier than others. Taking a long-term investing approach, as Buffett did, gives you a great chance of growing your portfolio so that you can be just as charitable one day. The post Warren Buffett is giving away billions appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 high-yield stocks paying more than 8% to buy now How I’d invest £10k today Why I’m planning to buy Saga shares 3 great starter stocks for new investors Is Argo Blockchain (LSE:ARB) a stock I’d consider buying?
    [visit article]
  18. 5 investing habits of Warren Buffett (28/06/2021 - The Motley Fool UK)
    Warren Buffett is the chief executive of Berkshire Hathaway. But to most investors, he is best known for his status as an investment guru. Here are five investing habits that have contributed to Buffett’s success in picking shares. In the know Warren Buffett is highly intelligent, but he is also modest. He doesn’t kid himself about what he doesn’t know, or understand. By investing only in industries and companies he understands well, Buffett is able to avoid a mistake made by many investors. Investing in exotic companies or emerging industries can seem appealing. But putting money into something one barely understands seems more like speculation than investment to me. Warren Buffett has expanded his expertise over the years. For example, he used to shun technology stocks but now Apple is Berkshire’s biggest shareholding. However, Buffett only invests in a company once he has done his homework and feels he understands it. If that means missing out on strong performance for years, he is fine with that. The long view and Warren Buffett Buffett takes a very long view when it comes to investment. That is apparent when it comes to his preferred holding time for shares: forever. But this long view also comes through when it comes to researching shares. Buffett has been following companies for years and sometimes decades before he invests in them. By keeping an eye on companies even when he isn’t a shareholder, I think Buffett can develop a fuller, more rounded understanding of their investment potential. Focus on what he does best Buffett sees his primary skill as capital allocation. His diary planning maximises the time he spends on that. He doesn’t get heavily involved in the daily management of most companies in which he invests. He also doesn’t squander time on activities he sees as having peripheral benefit to Berkshire. Handing over the reins to other people takes trust and confidence. Buffett doesn’t let his ego get in the way. Instead, he delegates a huge amount. That way, he can focus on his biggest investment skill – deciding how to allocate capital. Accepting failures Like any investor with long experience, Warren Buffett has had his fair share of failures. But instead of dwelling on them or letting missteps undermine his investment strategy, Buffett simply learns from each experience and moves on. That can be difficult for an investor to do. Psychologically it can be tempting to obsess about mistakes. Buffett is pragmatic – he tries to avoid mistakes but when he makes them he doesn’t let them take on larger significance than they have. Read, read, read Buffett is a voracious reader. His typical day isn’t dominated by meetings with bankers or visits to factories his company owns. Instead, he spends hours each day reading. Someone who flew on a private jet with him noted that he spent much of the flight reading newspapers. “The only reason he hasn’t read more,” she added, “is because we don’t have any more papers on the plane.” Reading gives Buffett analytical frameworks, data points for investment decisions, and detailed information on companies’ performance. Staying informed is critical to Warren Buffett’s success in identifying promising stocks. The post 5 investing habits of Warren Buffett appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Can I have two stocks and shares ISAs? 3 UK shares I’d consider buying to start investing The Lloyds share price: 3 things that could give it a boost How my contrarian picks have performed since the stock market crash UK shares – 2 e-commerce stocks I would buy today with £2K Christopher Ruane owns no shares in any company mentioned. The Motley Fool UK owns shares of and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool UK has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
    [visit article]
  19. What stock market quotes do you live by? Here are mine (27/02/2021 - Reddit Stocks)
    In no particular order: “Bears make money, bulls make money, but pigs get slaughtered.” – Jim Cramer “Be greedy when others are fearful and be fearful when others are greedy.” – Warren Buffett “In investing, what is comfortable is rarely profitable.” – Robert Arnott “Know what you own, and know why you own it.” – Peter Lynch “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett “Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett “Risk comes from not knowing what you’re doing.” – Warren Buffett “In the short run, the market is a voting machine. But in the long run, it is a weighing machine.” – Ben Graham “Individuals who cannot master their emotions are ill-suited to profit from the investment process.” – Benjamin Graham “Bears have predicted 20 out of the last 5 market crashes.” – Unknown “Everyone’s a genius in a bull market.” – Warren Buffett “Don’t invest money you can’t afford to lose.” – Unknown “The market can remain irrational longer than you can remain solvent.” – John Keynes Here are some of my own: “Don’t use the F word. Nothing is free.” – u/UncleZiggy "There is no place for emotions in the stock market. Emotional investors lose 100% of the time.” – u/UncleZiggy “Technical analysis is just fundamental analysis conspiracy theory.” – u/UncleZiggy “Don’t buy puts or short in a bullish market. Don’t buy calls in a bearish market.” – u/UncleZiggy “Only invest in what you know.” – u/UncleZiggy I don't agree with every quote I come across, and neither should you. What are some of your favorite quotes that guide your investment strategies? Also, if anyone knows who said some of the unknown quotes, please let me know!   submitted by   /u/UncleZiggy [link]   [comments]
    [visit article]
  20. What stock market quotes do you live by? Here are mine (27/02/2021 - Reddit Stock Market)
    In no particular order: “Bears make money, bulls make money, but pigs get slaughtered.” – Jim Cramer “Be greedy when others are fearful and be fearful when others are greedy.” – Warren Buffett “In investing, what is comfortable is rarely profitable.” – Robert Arnott “Know what you own, and know why you own it.” – Peter Lynch “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett “Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett “Risk comes from not knowing what you’re doing.” – Warren Buffett “In the short run, the market is a voting machine. But in the long run, it is a weighing machine.” – Ben Graham “Individuals who cannot master their emotions are ill-suited to profit from the investment process.” – Benjamin Graham “Bears have predicted 20 out of the last 5 market crashes.” – Unknown “Everyone’s a genius in a bull market.” – Warren Buffett “Don’t invest money you can’t afford to lose.” – Unknown “The market can remain irrational longer than you can remain solvent.” – John Keynes Here are some of my own: “Don’t use the F word. Nothing is free.” – u/UncleZiggy "There is no place for emotions in the stock market. Emotional investors lose 100% of the time.” – u/UncleZiggy “Technical analysis is just fundamental analysis conspiracy theory.” – u/UncleZiggy “Don’t buy puts or short in a bullish market. Don’t buy calls in a bearish market.” – u/UncleZiggy “Only invest in what you know.” – u/UncleZiggy I don't agree with every quote I come across, and neither should you. What are some of your favorite quotes that guide your investment strategies? Also, if anyone knows who said some of the unknown quotes, please let me know!   submitted by   /u/UncleZiggy [link]   [comments]
    [visit article]
  21. Warren Buffett’s latest letter: Multibillion-dollar ‘mistake’, bond investors’ bleak future, other key takeaways (28/02/2021 - Financial Express)
    Warren Buffett said he made a mistake in buying Precision Castparts Corp, which makes equipment for the aerospace and energy sectors, in 2016. The company had to write down nearly $11 billion, which was mostly tied to that purchase, as the pandemic hit the aviation sector badly.
    [visit article]
  22. Warren Buffett's 2021 Investing & Stock Market Advice (09/04/2021 - Reddit Stock Market)
      submitted by   /u/andystacks [link]   [comments]
    [visit article]
  23. This cheap UK share would likely appeal to Warren Buffett (21/07/2021 - The Motley Fool UK)
    Warren Buffett is undoubtedly the world’s most famous value-orientated investor. Following his mentor Benjamin Graham, author of The Intelligent Investor, he likes to find shares trading at a discount to their net asset value. This is called a margin of safety. I think I’ve found a cheap UK share that would appeal to Buffett.  Loads of property makes this very cheap That share is the automotive retailer, Vertu Motors (LSE: VTU). The group’s property, according to analysts at Liberum, is worth 61p a share. The analysis has an 80p target price. With shares trading at the time of writing at about 41p, that’s a pretty comfortable margin of safety. As an investor, I get a property business for less than book value and a car retailing business on top of that. That’s why I recently added the stock to my portfolio. It means the price-to-book ratio is around 0.6, which makes the shares incredible value. The price-to-earnings is about eight currently. It’s likely to fall further in the coming years as earnings grow. Why else might Warren Buffett like the shares Despite how cheap the shares are, sales are expected to grow. According to Liberum, sales will go from £2.55bn this year to £3.90bn by 2023. That to me looks like very solid top line growth for such a cheap company. The company will also move from a net debt to a net cash position in those years. Demand for used cars has been strong this year, in part because of global semiconductor and supply chain issues, which affects new car sales. This pushes up prices and Vertu, and indeed its competitors have been releasing positive statements in recent weeks. In turn, this could lead to earnings upgrades as analysts pencil in future growth. This could boost the share price. Overall it strikes me as the type of cheap UK share that has Warren Buffett style characteristics. That’s why I’ve initiated a position. The share price could fall Of course, no investment is without risk. Vertu Motors is no exception. The market could continue to punish the shares because it sees the company as being in a market in long-term decline. Operating margins are also very slim, leaving relatively little room for error if costs increase. Also, returns on capital also aren’t particularly high so compared to other industries this isn’t an obviously highly profitable market. Yet Vertu in fairness is consistently profitable. The automotive industry is also changing, so can Vertu management adapt to survive in a world of electric vehicles? As I said, I like the share and despite the risks I’m more likely to add to my holding than sell the shares. Any dip in the share price would in my book just increase the margin of safety and offer even better value. The post This cheap UK share would likely appeal to Warren Buffett appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Top small-cap stocks for July 3 penny stocks to buy in July 2 cheap UK shares I think could double my money Here’s what UK shares The Berkeley Group and Vertu Motors reported today! Andy Ross owns shares in Vertu Motors. The Motley Fool UK has recommended Vertu Motors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
    [visit article]
  24. Warren Buffett's First Televised Interview: Value Investing & Stock Market Tips (25/04/2021 - Reddit Stock Market)
      submitted by   /u/andystacks [link]   [comments]
    [visit article]
  25. Warren Buffett's 7 Investing Rules [Great Advice on how to Invest in Stocks!] (09/04/2021 - Reddit Stock Market)
      submitted by   /u/andystacks [link]   [comments]
    [visit article]
  26. How Warren Buffett helped my investing throughout the stock market crash (20/04/2021 - The Motley Fool UK)
    For a man who has written at great length about stock market investing, it’s no surprise Warren Buffett has built up a lengthy list of famous quotes. One of my favourites is: “I buy on the assumption that they could close the market the next day and not reopen it for five years.” But the wisest advice is often the toughest to follow. How many among us actually kept cool heads throughout the Covid-19 market crash? Were you able to calmly think “It doesn’t matter, I expect all will be fine in five years” and not be the least bit concerned? Well, at least I tried to. I have succeeded in following Buffett’s advice to some extent. In January, I thought I’d see how long I can go without looking at the value of my Stocks and Shares ISA. And I’ve succeeded so far – I haven’t peeked even once. Now, sure, it’s a lot easier to do that when markets are recovering. It’s a different story when share prices are plummeting, as they were in early 2020. Should I sell or buy? Still, even throughout 2020, I avoided panic, and I didn’t sell a single share. I was a buyer of stocks in 2020. I didn’t try to time things, and I wasn’t going by ups and downs in the FTSE 100. No, the timing of my investments has been driven by only one thing. When I have a sum to invest, that’s when I buy shares. But what if we had been able, as Warren Buffett suggests, to treat February 2020 as market close and keep clear until the pandemic was over? Well, it’s not quite over yet. But the FTSE 100 has already broken back above the 7,000 level. London’s top index reached 7,037 points on Friday. It’s a little below 7,000 on Tuesday as I write, but not by much. And look back to pre-pandemic days. Since February 2020, just before the crisis hit, the FTSE 100 is only down 6%. That kind of fluctuation happens all the time, even when there are no catastrophes happening. And the FTSE 250? That took a harder hammering in the early days of the crash, but it’s now up 2.7% over the same timescale. The Warren Buffett way Suppose that, instead of panicking along with the market, you immediately started buying shares. If you’d been fortunate with your timing and managed to buy in at the bottom, you’d now be 34% up with the FTSE 100. And an investment in a FTSE 250 tracker would see you 65% ahead. I’d never try to engage in market timing. I’m no good at it, and I’ve never met anyone who is. But by keeping Buffett’s wise words in mind, I’ve managed to sit out the great 2020 stock market crash with minimal losses. And by keeping on buying through the down spell, I’ve even picked up a few shares at knock-down prices as a bonus. And I still haven’t checked my portfolio valuation this year. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Why did the Pantheon Resources (PANR) share price crash? Is the GlaxoSmithKline (LSE:GSK) share price undervalued? Can the Zoetic (ZOE) share price keep climbing? Argo Blockchain’s share price has crashed. Should I buy the stock now? Can the 88 Energy (88E) share price explode again? Views expressed in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post How Warren Buffett helped my investing throughout the stock market crash appeared first on The Motley Fool UK.
    [visit article]
  27. Lawrence A. Cunningham's Quality Investing: These 15 companies are run in a Warren Buffett-like way (25/02/2021 - Market Watch)
    If the Berkshire Hathaway CEO was much younger, he'd feel comfortable running one of these.
    [visit article]
  28. : Warren Buffett still believes Berkshire Hathaway stock is cheap enough to buy (03/05/2021 - Market Watch)
    There's no bubble in Berkshire Hathaway Inc. shares, as Warren Buffett and Charlie Munger still believe they are cheap enough to spend more than $6 billion buying them back during in the first quarter, and perhaps more than $1 billion since then.
    [visit article]
  29. The Wall Street Journal: Warren Buffett defends Berkshire’s moves over pandemic year (01/05/2021 - Market Watch)
    Berkshire Hathaway Inc. Chairman and Chief Executive Warren Buffett on Saturday defended the company’s investments over the past year as the coronavirus pandemic initially drove a plummet in stocks, before the market turned around and surged to record highs.
    [visit article]
  30. The Wall Street Journal: Warren Buffett defends Berkshire’s moves over pandemic year (01/05/2021 - Market Watch)
    Berkshire Hathaway Inc. Chairman and Chief Executive Warren Buffett on Saturday defended the company’s investments over the past year as the coronavirus pandemic initially drove a plummet in stocks, before the market turned around and surged to record highs.
    [visit article]
  31. : Warren Buffett baffles many on green energy — what about heir apparent Greg Abel? (03/05/2021 - Market Watch)
    Greg Abel, the likely successor to Warren Buffett at Berkshire Hathaway, directed the company’s move into renewable energy as the head of its large utility business. By most accounts, it's too soon to predict if that pedigree will translate into a more-aggressive green shift.
    [visit article]
  32. A UK share I think matches the Warren Buffett investment style (19/03/2021 - The Motley Fool UK)
    Investing guru Warren Buffett is now worth an estimated $100bn. No wonder so many investors try to apply his straightforward principles in their own investment decisions. Lately I have been considering a UK share I think meets a lot of the investment criteria Buffett typically applies to buying shares. Here I share why. Little known but much loved The stock in question is Spirax-Sarco Engineering (LSE: SPX). If you have never heard of it, you are not alone. The specialist engineering firm is not a household name. That is because its main focus is B2B. It supplies engineering products and services to a wide range of customers around the globe. Its main profit driver is steam, but it also has electric thermal solutions and a well-regarded pump business. Steam hardly sounds like the business of the future! But in fact, all of the company’s offerings have applications in industrial processes such as manufacturing. Warren Buffett talks about a business having a “moat” – a competitive advantage which makes it difficult for other companies to muscle in on its business area. Spirax-Sarco’s proprietary engineering designs, talented team, and extensive customer relationships form such a moat in my view. If a customer purchased a pump from them before, they would be the obvious choice to maintain or replace it. Another characteristic that matches Warren Buffett’s investment criteria is the company’s pricing power. Pumps and valves may sound like a commodity market. But, in fact, a lot of Spirax-Sarco revenues come from bespoke solutions designed for a specific customer situation. If a company is running a factory, oil rig, or power station and has to take it offline because of a faulty component, the loss can run into thousands of pounds an hour in some cases. So the sorts of customers Spirax-Sarco targets tend to value quality over price. That gives the company pricing power. Outstanding dividend record There aren’t many UK shares that have raised dividends annually for decades. Spirax-Sarco raised its dividend last week by 7% – a healthy increase. But what impresses me even more is that is just the latest annual raise in an unbroken stretch covering half a century. Of course, to keep raising dividends in the future, the company will need to maintain and grow earnings. Revenue fell 4% last year and the company only eked out a 1% increase in pre-tax profits. A slowdown in business activity is bad for demand, and any future recession could impact the company negatively. Even Warren Buffett makes mistakes Such a share is bound to have its admirers. That pushes the price up. Even after all those dividend increases, Spirax-Sarco is only yielding 1%. That reflects the fact that the share is so popular and heavily bought. In 2016, Buffett bought a company which made precision engineering components for mission-critical applications. Yet in his insightful letter to shareholders last month, Buffett called the purchase a mistake as he “paid too much”. Could the current price for Spirax-Sarco be too high? It’s just 8% lower than its all-time peak. If it falls out of fashion or the business starts to struggle, it has a long way to fall down. But its business model gives it a lot of the characteristics of a share I’d choose using Warren Buffett investment criteria. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading ASOS shares are rising: here’s what I would like to do Should I buy Greggs shares after its 2020 loss? 2 ideas I’d add to my passive income list Penny share in focus: why did the Futura Medical share price soar 125%+ today? Why I’ve bought more Plug Power stock despite it crashing 100% in 2 months christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post A UK share I think matches the Warren Buffett investment style appeared first on The Motley Fool UK.
    [visit article]
  33. Warren Buffett has made $8.3 billion so far in 2021 from these two stock investments (02/03/2021 - Financial Express)
    Looking at some of the largest stock market investments made by Warren Buffett, two of the three companies where Berkshire Hathaway holds a double-digit stake, have helped the investor pocket $8.3 billion in just two months of 2021.
    [visit article]
  34. I can buy Unilever shares at a lower price than Warren Buffett would have paid! (17/02/2021 - The Motley Fool UK)
    Four years ago this month, Unilever (LSE: ULVR) rebuffed a Warren Buffett-backed bid for the company. The offer valued it at £40 a share. Subsequently, the Unilever share price went on to make an all-time high of £52 in the summer of 2019. Today, I can buy Unilever’s shares at a lower price than Buffett was willing to pay. At sub-£40, they’re also at a 24% discount to their all-time high. Here, I’ll discuss why I’d buy the shares at this level. I’ll also look at the potential risks to my investment case. Warren Buffett rebuffed Kraft Heinz, backed by its 50% owners Buffett and 3G Capital, approached Unilever with an initial £40-a-share offer price. However, Unilever had no interest in being acquired. According to the Financial Times, the Unilever team studied 3G’s modus operandi in previous takeovers, and concluded Kraft Heinz “would try to seem as friendly as possible and then increase its bid in increments until there was sufficient pressure from Unilever investors“. This suggests Buffett would have been willing to sanction an offer of even more than £40-a-share. However, Unilever’s board moved quickly to nip Kraft Heinz’s approach in the bud. It publicly stated it saw no merit in the offer and no basis for any further discussions. Buffett has an aversion to doing hostile takeovers, and he and 3G boss Jorge Lemann made the decision for Kraft Heinz to withdraw its proposal. Unilever share price better than fair One of Buffett’s famous sayings goes: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. That Kraft-Heinz’s £40-a-share approach for Unilever was an initial offer suggests to me sub-£40 a share represents a better than fair price for a wonderful company. Buffett’s readiness to acquire Unilever for £40 a share, and possibly at a higher price, is one reason I’d be happy to buy the stock at its current level. Historically cheap I can see a couple of risks in buying Unilever based on the Buffett share price. First, his valuation of the company could have been wrong — that’s to say, too high. It’s a risk. But I find it hard to believe Buffett, 3G’s Lemann, and the UK’s Nick Train (who was adding to his Unilever shareholding in 2017) were all significantly off the mark in their assessment of the intrinsic value of the business. Another risk is that they were right, but Unilever has become intrinsically less valuable in the four years since. However, I can’t find see any evidence for this. It’s more profitable and cash-generative than in 2017. Its underlying operating margin has expanded from 15.3% to 18.5% over the four years. Earnings per share have increased by 32% and free cash flow by 60%. I’d say Unilever is a more valuable business today than when Buffett placed his £40-a-share sighting shot on the company. Trading at an historically cheap 18.4 times trailing earnings, with a free cash flow yield of 6.4% and dividend yield of 3.7%, I’d be happy to buy Unilever at its current share price. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape Unilever shares: should I buy? These two cheap shares keep on falling. I’m delighted with this good news! The best shares to buy now: 2 FTSE 100 stocks I’ve been buying Why I won’t be rushing to buy Unilever shares G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I can buy Unilever shares at a lower price than Warren Buffett would have paid! appeared first on The Motley Fool UK.
    [visit article]
  35. Lawrence A. Cunningham's Quality Investing: Biden’s tax reform should rely on the ‘Buffett Rule’ to make the rich pay their fair share (27/04/2021 - Market Watch)
    'Billionaire tax' would be simpler and smarter than a capital-gains tax hike and other complicated changes.
    [visit article]
  36. Mark Hulbert: Even a modified ‘Buffett Indicator’ is more bearish than ever (02/03/2021 - Market Watch)
    Warren Buffett's favored market valuation measure is warning stock investors, no matter how you slice it
    [visit article]
  37. The New York Post: Warren Buffett admits ‘mistake’ cost Berkshire Hathaway $11 billion (27/02/2021 - Market Watch)
    Berkshire Hathaway earned $42.5 billion in 2020, but on Saturday, CEO Warren Buffett admitted the conglomerate’s results for the year included a rare “mistake” — that cost the company $11 billion.
    [visit article]
  38. Invest According To Your Style (19/04/2021 - Reddit Stocks)
    Investing according to your own style is extremely important. If you don't invest according to your style. you will find yourself worrying all the time and buying and selling all the time and potentially losing out on big gains. Everyone has their own style, whether it be focusing on growth stocks, going for dividends, focusing on a sector, or whatever. Your investing style may not be optimal but it is what you are comfortable with. The reason I am saying this is because I read soooo many people ask if this is the top, or that we are at all-time highs or they want to sell because they are worried or they are down 10%. If you are asking these questions, then maybe you are not investing according to your own investing strategy. Maybe you are invested too heavily in stocks which is why you are worried about a 10% correction or maybe you are invested in too many small-cap stocks. You could also be worried because you need money in one year and you thought the stock market was an easy place to make money. Whatever your reason for doubting your decisions, there has to be a reason why you are doubting your investment decisions and that's because it does to conform to your investing strategy anymore. Each time you ask yourself these questions or get worried, reflect on what your investment strategy is. Good Luck!   submitted by   /u/moneytobemade8 [link]   [comments]
    [visit article]
  39. 5 investing lessons I learned from Warren Buffett (11/02/2021 - The Motley Fool UK)
    Berkshire Hathaway leader Warren Buffett is well-known for amassing  a fortune thanks to his investing and management prowess. But Buffett is also generous in sharing his wisdom, which can be a boon to investors. Here are five investing lessons I’ve learned from Buffett. Quality is worth paying for Buffett started with what he calls “cigar butt” investing – buying companies that look cheap and might have just one good puff left in them before they decline. That is a form of value investing and it can be attractive, because buying something for less than it is worth often seems attractive. Buffett points out that it is worth paying more to get a quality business that can keep growing profits into the future. That is one reason I like Unilever – no matter what happens in the short term, its broad-based brand portfolio should enable it to prosper for decades to come. Warren Buffett sticks to what he knows Buffett missed out on some amazing tech stocks. But he also missed out on lots of terrible ones. That is because he avoided the sector for decades, saying he didn’t understand it. Buffett talks about the value of staying inside one’s area of knowledge. That sounds obvious, but a lot of investors chase hot stocks with no real ability to assess their likely returns. That is why I avoid lithium stocks like Bacanora – I just don’t feel qualified enough yet to judge the relative merits of different lithium projects. By contrast, I understand the market for domestic gas and feel comfortable picking a company with exposure to it, such as DCC. Cash generation is the name of the game If one looks at the businesses in which Buffett invests, a consistent theme is that they tend to be fairly cash generative. That means they often don’t need large amounts of capital, although some Buffett investments like railways are capital intensive. But they throw off huge amounts of cash, which makes them attractive investments. Free cash flow is a key metric I consider when looking at a stock. It gives a good indication of whether a company is actually getting money in the door. That’s one reason I like highly cash generative businesses like British American Tobacco. It’s important to remember, though, that historic cash generation might not be replicated in future. Focus on businesses not management While Warren Buffett praises individual managers, his position is actually not to focus on management quality alone. He suggests investing in businesses that would be successful even if run by idiots. That makes sense to me, because no management lasts forever. Instead, I like to choose businesses which have fundamental strength I judge likely to endure. For example, Howden Joinery is a well-run business. But even it wasn’t, its network of trade counters gives it a strong commercial position, which I expect to continue. After a recent recovery, though, its share price is less attractive to me than it was. Buffett cuts his losses When things turned bad at Tesco several years ago, Buffett didn’t wait to see if they would get better again. Instead, he cut and run – with a big loss. That can be hard to do but as Buffett says, there is rarely only one cockroach in a kitchen. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Cold Weather Payment: what is it, and can I get it? I think this could be one of the best UK shares to buy now What’s the best peanut butter to buy? FTSE 100 shares to buy: AstraZeneca has rediscovered its growth mojo The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note christopherruane owns shares of British American Tobacco. The Motley Fool UK owns shares of and has recommended Berkshire Hathaway (B shares). The Motley Fool UK has recommended Howden Joinery Group, Tesco, and Unilever and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 5 investing lessons I learned from Warren Buffett appeared first on The Motley Fool UK.
    [visit article]
  40. Lawrence A. Cunningham's Quality Investing: Warren Buffett could teach traders in dogecoin, GameStop and other hot trends a few things about ‘Mr. Market’ (22/04/2021 - Market Watch)
    Be skeptical of fads and fashions and operate within your circle of competence.
    [visit article]
  41. Lawrence A. Cunningham's Quality Investing: Berkshire Hathaway’s CEO-in-waiting has a lot of Warren Buffett in him — plus more (04/05/2021 - Market Watch)
    Patient investor, Midwesterner and bargain-hunter, Greg Abel has what it takes to lead when the time comes.
    [visit article]
  42. Lawrence A. Cunningham's Quality Investing: Berkshire Hathaway’s CEO-in-waiting has a lot of Warren Buffett in him — plus more (04/05/2021 - Market Watch)
    Patient investor, Midwesterner and bargain-hunter, Greg Abel has what it takes to lead when the time comes.
    [visit article]
  43. Warren Buffett letter wisdom led me to sell this FTSE 100 share (28/02/2021 - The Motley Fool UK)
    Every year Warren Buffett releases his shareholder letter. It is publicly available for free online and contains a lot of investing wisdom. Buffett’s long-term investment record is one of the best in history, but his advice is helpful even to novice investors. I have been looking back over some of Buffett’s old shareholder letters to help inform my own investment strategy. Since his last letter, reflecting on Buffett’s wisdom, I sold a holding in a large FTSE 100 company. Warren Buffett emphasizes competitive ‘moats’ Warren Buffett talks a lot about moats. In medieval times, moats around castles made it harder for attackers to breach the castle ramparts. In investment terms, a competitive advantage can fulfil a similar function. Auto Trader is a good example. With its brand recognition and the network effect of large numbers of buyers and sellers congregating in one place, Auto Trader enjoys a business advantage which it is hard to undermine. Moats matter because they help companies have pricing power and a captive audience. But not all industries have moats. Natural resources is an industry where it can be hard to build a moat. Maybe a certain oil block gives economic advantages – but it’s hard to see a commodity like oil as having unique qualities competitors can’t replicate. Nonetheless, a well-run oil company can still establish some sort of competitive advantage, for example, by running a proprietary network of petrol stations as distribution outlets downstream. When I bought Shell (LSE: RDSA, RDSB), it hadn’t cut its dividend since the Second World War. I was more attracted by that record than I ought to have been. After all, what matters to me as an investor is the likelihood of future dividends, not the certainty of past ones. When it did cut the dividend steeply last year, that hurt me as a dividend lover. I started to assess whether I ought to keep Shell or sell it. I felt management messaging about the dividend was weak. However, Warren Buffett doesn’t always sell shares just because he is unimpressed by management. It’s the business he is more interested in. But I also started to question whether Shell really had a moat going into the future. Renewable energy focus Shell, like some other oil companies, has been pushing hard to move from oil and gas to renewable energy sources such as wind. Indeed, the chief executive recently said that Shell would never again reach its previous levels of oil production. But I don’t see where its moat is in green energy. Shell has a lot of expertise in oil, which it has gained over a century. It also has local expertise in areas like the North Sea and Nigeria. By contrast, alternative energy strikes me as a crowded field. Shell’s expertise in energy distribution could offer it a competitive advantage – but that is uncertain. Similarly, the company’s ability to deal with government and regulators in oil may be transferable to alternative energy. On the other hand, it may not work as well there. In short, Shell is reshaping itself in a way which to me looks like it has less of a moat every year. That doesn’t agree with a Warren Buffett-style investment strategy. Like Shell itself, I decided to look elsewhere for new opportunities. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Royal Dutch Shell shares: should I buy today? The RDSB share price jumps! Is now the time to buy the stock? The RDSB share price is down 29% over the last 12 months. Here’s what I’d do RDSB share price: what I’d do given the company’s green strategy Royal Dutch Shell says oil production has peaked – should I buy shares in the company now? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Auto Trader. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Warren Buffett letter wisdom led me to sell this FTSE 100 share appeared first on The Motley Fool UK.
    [visit article]
  44. Why I’d follow this piece of Warren Buffett advice today (03/03/2021 - The Motley Fool UK)
    Warren Buffett has a long track record of generating high returns. One of the key tenets of his investment strategy is having a long-term focus when holding stocks in his portfolio. This allows his holdings to deliver on their growth potential. It also means that he does not become overly excited following periods of impressive capital returns. This approach may be especially useful in today’s stock market environment. The recent rally makes it easier to become overly confident in the prospects for equity markets, which may lead to poor decision-making. Warren Buffett’s long-term focus Many of Warren Buffett’s major portfolio holdings have been present for decades, rather than years. In that time, they have often delivered strategy changes and capitalised on growth opportunities that are simply not possible to achieve in a matter of months. Through allowing them the time they need to produce improving returns and higher profitability, Buffett has been able to enjoy higher returns than may have been possible if he had adopted a short time horizon. This point is especially relevant right now. Many investors may have enjoyed strong returns from their portfolio holdings in recent months. The stock market has experienced a rally that has pushed it to a new record high on a global basis. While it may now be tempting to sell stocks that have produced strong returns, and to buy others in their place, providing them with the time they need to deliver on their strategies could be a more logical approach. Buffett’s investment fundamentals Of course, Warren Buffett’s value investing approach means that he is likely to sell a stock if it becomes overpriced. Similarly, if there are other more attractive opportunities available then it can be worth offloading a stock to generate sufficient capital to take advantage of it. Therefore, a long-term approach may not always be the right move. However, selling stocks because they have risen quickly in price over a short time period may not be a prudent move. It can lead to an investor missing out on future gains – especially since global economic forecasts are generally positive at the present time. And, since the world economy has always recovered from its declines to post impressive turnarounds, there may be further opportunities for capital gains in the coming years. A simple strategy Clearly, Warren Buffett’s long-term approach may not prove to be the right one for every investor. As 2020 showed, a stock market crash can take place at any time and can wipe large profits from existing holdings. However, through having a long-term viewpoint, it may be easier to spot potential mispricings among high-quality stocks. It may also provide greater scope to benefit from the impact of compounding in a likely period of long-term economic growth over the coming years. As such, sticking with high-quality companies even after potential recent gains could be a shrewd move. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Do first-time buyers pay stamp duty? The easyJet share price is taking off. Is now the time to buy? What does it mean when the economy shrinks? Should I buy Tesla shares or the Scottish Mortgage Investment Trust? The Rolls-Royce share price is rising. Should I buy now? Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d follow this piece of Warren Buffett advice today appeared first on The Motley Fool UK.
    [visit article]
  45. Warren Buffett – Important investing lessons I’ve learned (24/06/2021 - The Motley Fool UK)
    Warren Buffett is one of my investing role models. I attempt to shape my portfolio and investment decisions based on lessons learnt from watching him. Here are some of the investing fundamentals Warren Buffett has taught me by example. Investing with a long-term view The Foolish way is to invest for the long-term and I also apply this principle. Buffett says, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” “Our favourite holding period is forever.” Investing is about generating wealth over a long period of time while minimising risk. Short-term profits are good, but wealth generation occurs over a sustained period of time. Warren Buffet buys quality over quantity Two of Buffett’s favourite companies are Coca-Cola and Apple. Both have incredibly strong brand recognition throughout the world. This has helped them grow exponentially, in turn generating huge profits for their investors. Rather than buying lots of different stocks, Warren Buffett believes in buying high-quality businesses. This can mean firms that possess significant advantages as well as global footprint. He says, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.“ I would rather buy a quality business at a higher price, than a low-quality business no matter how attractive the share price may be. Warren Buffett has largely kept out of the tech sector, as he has professed his lack of knowledge of that area. This is one of the best lessons I have learnt. Stick to what you know and do your own homework is what I learnt from this lesson. He says, “Risk comes from not knowing what you are doing.” And, “Never invest in a business you cannot understand.” People make investing more difficult than it is I believe Buffett’s investing strategies are about simple processes to make rational investment decisions. One of the consistent messages I find throughout his lessons is that you don’t have to be a genius to be a good investor. He says, “The business schools reward difficult complex behaviour more than simple behaviour, but simple behaviour is more effective.” From this, I learnt that complex processes and equations or a thorough investing model is not needed. I believe good old fashioned hard work, research, due diligence, and keeping it simple work for me. How I manage my portfolio using these lessons There are lots of other quotes, stories, and anecdotes involving Buffett that teach investment basics and fundamentals. Above are some I use on a day-to-day basis. I invest in stocks with a long-term view. I focus on quality companies rather than focusing on valuation alone. In order to succeed, I try to keep my investment process simple without complex theories. Instead, I believe in thorough research and due diligence. Finally, I try and stick to firms and sectors I know about as over-diversification can be damaging. Warren Buffett isn’t a huge fan of excessive diversification and his biggest winners have only come from a handful of the stocks he’s owned. The best examples that spring to mind (apart from the aforementioned Apple and Coca-Cola) are Chevron, American Express, General Motors, Mastercard, and Johnson & Johnson. The post Warren Buffett – Important investing lessons I’ve learned appeared first on The Motley Fool UK. Check out the one in the free report below… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Which FTSE shares have gone up the most? Here’s why I’ve put IQE shares on my watchlist EV stocks are booming. Should I buy shares? 4 ways I can make my stocks portfolio more ESG investing-friendly The Dignity share price is soaring! Should I buy today? Jabran Khan has no position in any shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
    [visit article]
  46. Warren Buffett is an investment genius. But these UK fund managers have beaten him (29/04/2021 - The Motley Fool UK)
    Billionaire US investor Warren Buffett is famed both for his fortune and his folksy words of wisdom. Nobody disputes the abilities of the grand old man of investing, but that doesn’t make him invincible. If he was, we should all buy shares in his Berkshire Hathaway investment vehicle, and let him get on with it. Yet we don’t. There will always be pretenders to Warren Buffett’s crown, and a surprising number reside on these shores. Laith Khalaf, financial analyst at AJ Bell, points out that 2020 was not a vintage year for Warren Buffett, with Berkshire Hathaway returning 2.4%, against 18.4% on the US stock market. But his long-term performance numbers are “mind-bending”. He has delivered a dollar return of 2,810,526% since 1965, compared to 23,454% from the S&P 500. These UK fund managers thrashed the market Warren Buffet averaged an investment return of 20% a year over that time, roughly double the 10.2% return on the US stock market. However, over the last 20 years, Berkshire Hathaway has returned 507%. That’s jolly good, but the best performing UK-based fund, Aberdeen Standard Asia Focus, returned almost four times as much at 1,975%. One of the UK’s most popular funds, Scottish Mortgage Investment Trust, was second best performer, with a total return of 1,928%. It was followed by Baillie Gifford Pacific Horizon (1,900%) and Aberdeen New Thai Investment Trust (1,655%). As you can see, three of these four funds are focused on fast-growing emerging Asia, whereas Warren Buffett mostly invests in larger US companies. However, as Khalaf notes, the S&P 500 has been the best performing major index of the last two decades. That should give him the edge. Khalaf notes that UK fund management faves Nick Train and Michael Lindsell have done well from investing in comparable large cap-equities. Lindsell Train Global Equity is up 1,620% over 20 years, the fifth best performer.  It’s not easy to beat Warren Buffett Some smaller companies have funds have also done spectacularly well. Marlborough Special Situations, which invests in UK small caps, is up 1,517% over 20 years. Scottish Oriental Small Companies, which invests in Asia-Pacific, returned 1,442%. Ninety One UK Smaller Companies (1,432%) and Jupiter UK Smaller Companies (1,414%) also smashed it. As ever, past performance is no guarantee of future success, even for Warren Buffett (as he’d be first to admit). Asia’s rise to wealth and prominence is a historical phenomenon. Smaller companies can be more volatile, rising faster in the good times but falling faster in the bad. In total, 160 UK-based funds and investment trusts posted returns better than Warren Buffett’s Berkshire Hathaway over 20 years. As many invest in smaller companies, emerging markets, or specialist themes, they aren’t directly comparable. Higher risk often equals higher returns. I’ve noticed that myself, and buy Asia and smaller companies funds, while also searching the FTSE 100 for individual stock picks to turbo-charge my wealth. Today’s successful fund managers may disappoint in future, but the long-term track records of those listed here suggest they rely on judgement rather than luck. However, I doubt any of them will still be investing at 90, like Warren Buffett. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Will the Vodafone share price rise in 2021? The FTSE 100 surpasses 7,000 points! Here’s a cheap UK dividend share I think will soar 2 FTSE 100 stocks to watch Why I think the Vodafone share price could keep climbing The Vodafone share price is near its one-year high. Would I buy today? Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Warren Buffett is an investment genius. But these UK fund managers have beaten him appeared first on The Motley Fool UK.
    [visit article]
  47. 2021 AGM won’t be held in Omaha, says Warren Buffett; tells shareholders to ‘never bet against America’ (27/02/2021 - Financial Express)
    The formal meeting will begin at 5:00 PM EDT (3:30 AM) and should finish by 5:30 PM, said Buffett. Berkshire's two vice-chairman, Ajit Jain and Greg Abel, will also answer questions during the AGM.
    [visit article]
  48. No savings at 50? I’d use Warren Buffett’s methods to invest (19/02/2021 - The Motley Fool UK)
    Warren Buffett’s investment strategy has been hugely successful for many years. The billionaire investor’s long-term approach and purchase of high-quality companies trading at low prices has allowed him to outperform the stock market. Following a similar approach could help to build a retirement nest egg over the coming years. Many shares appear to offer good value for money right now. So today could be the right time to start that process. Even from a standing start at age 50. Warren Buffett’s long-term approach One of the key parts of Buffett’s approach to investing is his long-term outlook. He avoids short-term fads. Instead, he seeks to maximise returns over many years, and even decades. In doing so, he provides his portfolio holdings with the time they need to deliver on their potential. His strategy also allows compounding to have maximum impact on portfolio value. An new investor aged 50 may not have as much time to build a retirement nest egg as someone just starting their career. However, they’re likely to have 15+ years left of working until they retire. As such, they still have a long time horizon. Enough time to maybe be able to follow Buffett’s lead in using a buy-and-hold strategy to improve their financial position. Investing money in high-quality stocks at low prices Another facet of Warren Buffett’s investment strategy that could be useful to many investors is his focus on buying undervalued shares. This doesn’t mean he buys cheap shares in low-quality companies. Or that he seeks to buy the best stocks at any price. Instead, he combines the two approaches to purchase high-quality stocks when they trade at low prices. In many cases, those low prices are caused by weak operating conditions prompted by a tough economic period. History shows such conditions are unlikely to last in perpetuity. Certainly since the economy has always recovered from its challenges to post improving growth rates. As such, buying companies with solid financial positions and wide economic moats while they experience temporary challenges could be a sound move. Investing for retirement Using Warren Buffett’s strategy could lead to impressive returns that beat the stock market’s performance over the long run. Even if an investor matches the 8-10% annual total returns of indexes such as the FTSE 100 and S&P 500 over recent decades, they could build a surprisingly large portfolio by retirement. For example, investing £1,000 per month over 15 years at a 9% return would produce a portfolio valued at £381,000. From this, a 4% annual passive income could be drawn that would amount to over £15,000 per year. By following Warren Buffett’s strategy it’s possible to beat such returns in the coming years to produce a larger nest egg. And a more generous income that could even lead to an early retirement. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading HSBC share price: the bank could have a big event coming up British American Tobacco looks to expand into cannabis. Is BATS a good investment? 3 reasons for organising a will The Lloyds share price is climbing in February. Should I top up my holding? 1 investing step I’d take now to get closer to financial freedom Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post No savings at 50? I’d use Warren Buffett’s methods to invest appeared first on The Motley Fool UK.
    [visit article]
  49. "Wide diversification is only required when investors do not understand what they are doing." Quote by Warren Buffett (18/02/2021 - Reddit Stocks)
    Hopefully everyone having a good day. I saw the quote in the title by the legendary investor Warren Buffett and it got me thinking. I understand what he means by this quote but I'm tempted everyday by new "HOT" stocks with very high earning potential in the future. I'm more on the conservative side when it comes to investing and it gives me a sense of security when I have my portfolio diversified (90K total invested into 13 different stocks). One of my major concern is that you can believe in a stock after careful research and analysis but at the end of the day it's how the other investors and market as a whole values the stock, which you have no control over. I know there are many smart and successful investors in here so I would like to hear your opinion on the question. How diversified is too much diversification? Would you only stick to what you know best or expand to look for undervalued companies for potential gains? Anything helps, thank you in advance!   submitted by   /u/Asbbbb [link]   [comments]
    [visit article]

For more information mailto [email protected]. Disclaimer.