“I don’t know when to buy stocks, but I know whether to buy stocks,” said investor Warren Buffett on a CNBC interview. Buffett recently celebrated his 88th birthday and promoted the idea that even though the stock market is at record highs today most investors are still better off owning a basket of diversified equities than long-term bonds. The reasoning is that 30 year … [Read more...]
Understanding Real Estate Property Value – Part 2
In this first part of this series, we discussed where to look for and how to determine the property value of real estate. In this article, we’ll explore the concept of intrinsic value and the long-term return on investment (ROI) potential that comes from income-producing real estate. The generally accepted definition of intrinsic value is the actual value of a company or an … [Read more...]
Warren Buffett’s Bet with Hedge Funds
In 2006, Berkshire Hathaway's Chair, Warren Buffett, made a bet with hedge fund Protege Partners. Buffett claimed that over a 10 year period, the Vanguard S&P 500 index fund would perform better overall than the cumulative returns of any five fund-of-funds chosen by Protege Partners. Last weekend during the annual meeting of Berkshire Hathaway (BRK.B,) Buffett took the … [Read more...]
Has Berkshire Hathaway’s Stock (BERK.A) Lost its Mojo?
Shares of Berkshire Hathaway (BERK.A) were down by 12% in 2015 compared to the 0.7% fall in S&P’s 500 indexes and were at its worst since 2009. It incurred a $38 million loss on its insurance underwriting businesses resulting in a 10% fall in its operating earnings for the second quarter of 2015. The first three- quarters of 2015 were difficult for the insurance businesses … [Read more...]
