Don't get too carried away with Old Warren.
Good but not great, especially when you consider that many of his investements are procured at below-market prices (eg GS last year)
The cheat - why can't he get with the programme we have in this country, buy high and wait for values to fall.... Good but not great, especially when you consider that many of his investements are procured at below-market prices (eg GS last year) ...
I don't think that Mark is saying that he is buying shares cheaply.
I think he means that Buffett can use his reputation and huge cash to buy shares below the prices which the rest of us would have to pay.
Let's say for some reason, Irish public companies in general were prepared to sell shares to me at 20% below the prices available to others, then I would expect to beat the average.
Obviously, it's smart for Buffett to get himself into that position.
The other unusual feature of Buffett is that, for some years, he has been buying whole companies, rather than just buying shares. He does seem to have an uncanny ability to buy large, profitable companies cheaply.
Brendan
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If you want to eat steak and double hash fries(?) and three bottles of cherry coke in the same diner every day of your life, do so.
Don't get too carried away with Old Warren. If you use the Bershire A-shares as a measure of his prowess, he has barely doubled in the past 10 years.
http://finance.yahoo.com/echarts?s=...on;ohlcvalues=0;logscale=off;source=undefined
Good but not great, especially when you consider that many of his investements are procured at below-market prices (eg GS last year)
EDIT _ the chart did not link as I intended. Adjust the tracker at the base of the chart to 1999 to see my point.
I don't think that Mark is saying that he is buying shares cheaply.
I think he means that Buffett can use his reputation and huge cash to buy shares below the prices which the rest of us would have to pay.
Let's say for some reason, Irish public companies in general were prepared to sell shares to me at 20% below the prices available to others, then I would expect to beat the average.
Obviously, it's smart for Buffett to get himself into that position.
The other unusual feature of Buffett is that, for some years, he has been buying whole companies, rather than just buying shares. He does seem to have an uncanny ability to buy large, profitable companies cheaply.
Brendan
I would suggest that you add comparisons to the chart link you posted, i.e. add the dow and s&p and then judge how the shares performed.
There was a very good research paper published last year on copying Buffett's investments: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=806246
A long, long time ago a friend said to me about leverage, 'If you're smart you don't need it, and if you're dumb, you got no business using it.'
It's called NAMA.How we could do with more managers like this who put the long term prospects of the shareholders over that of short term speculators and quarterly reporting.
Yes, I know he beats the benchmarks but there are lots of other investors who have had much better performance over long periods ( me included !!) . All I'm saying is that he walks on water, not above it !! People think of him as a god, which is reflected in the P/E of BRK-A (>50), which would probably mean that he hiself would not invest in his own company.
Thanks for the link to the analysis of his performance.
Just wanted to point out that two fold increase in 10 years is comparatively a very good performance.
I agree on the fact that BRK was not the best investment of the last 10 years, and that Buffett himself would probably not invest in a company with similar price and ratios.
He once pointed out the fact that he would have much better opportunities for higher percentage annual returns if he had an investment pot of less than a million $. The reason being that when BRK goes to buy shares, the amount of money involved makes it impossible to invest in small-cap companies.
He once pointed out the fact that he would have much better opportunities for higher percentage annual returns if he had an investment pot of less than a million $.
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