The Question of Conservatism

Editorial note: this article is an excerpt from Buffett Partnership Letter, January 24, 1962 The above description of our various areas of operation may provide some clue as to how conservatively our portfolio is invested. Many people some years back thought they were behaving in the most conservative manner by purchasing medium or long-term municipal or government […]

Mr. Buffett on the Stock Market

November 22, 1999 (Please note that the FRED charts are added to this blog.) Investors in stocks today are expecting way too much, and I’m going to describe why. That will necessarily establish me to talking about the general stock market, a topic I’m not responsive to discuss. However, I need to make one thing […]

What is intrinsic value

“Book value tells you what has been put in; intrinsic business value estimates what can be taken out. “ Buffett: Chairman’s Letter – 1983 – Berkshire Hathaway, Inc. Link: Now let’s focus on two terms that I mentioned earlier and that you will encounter in future annual reports. Let’s start with intrinsic value, an all-important concept that […]

Betting on sure things

[When asked for the opinions on telecom industries]…I know people will be drinking Coke, using Gillette blades and eating Snickers bars in 10-20 years and have rough idea of how much profit they’ll be making. But I don’t know anything about telecom. It doesn’t bother me. Somebody will make money on cocoa beans, but not […]

Buffett on Railroad Industry

[Q: What are your views on the railroad industry?] I don’t think the railroad industry will be a lot more exciting, but the competitive position of the railroads has improved somewhat since 20 years ago. There’s been progress on labor issues and an improved competitive position vis-a-vis truckers. Higher oil prices hurt railroads, but hurt […]

Buffett on Newspaper Industry

[Q – Are you still down on newspapers? Ipad and other e-reading technologies – will it end up with contraction in earnings retained by content provider or by distributor?] WB: When money at newspapers came from advertising – it was on average about 75%, they used to be only game in town, and what a […]