The Warren Buffett CEO: Secrets from the Berkshire Hathaway Managers

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  • Condition: USED – VERY GOOD
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“Everyone knows Warren is the greatest investor of our time. . . .This book for the first time captures his genius as a manager.”
–Jack Welch “Everyone who reads it comes away singing its praises”
–Warren Buffett Much has been written about Warren Buffett and the philosophy that made him the most successful investor in history, yet nothing–until now–has been written about his role as manager of the diverse companies under Berkshir… More >>

The Warren Buffett CEO: Secrets from the Berkshire Hathaway Managers

How to Pick Stocks Like Warren Buffett: Profiting from the Bargain Hunting Strategies of the World’s Greatest Value Investor

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A $10,000 investment in Warren Buffett’s original 1956 portfolio would today be worth a staggering $250 million … after taxes! What are his investing secrets? How to Pick Stocks Like Warren Buffett contains the answers and shows, step-by-profitable-step, how any investor can follow Buffett’s path to consistently find bargains in all markets: up, down, or sideways. How to Pick Stocks Like Warren Buffett sticks to the basics: how Buffett continually finds bargain… More >>

How to Pick Stocks Like Warren Buffett: Profiting from the Bargain Hunting Strategies of the World’s Greatest Value Investor

Learn From Warren Buffett and Joseph Kennedy Exactly How to Double Your Income

The Story of Joseph Kennedy

Joseph Kennedy was a stock market investor in the late 1920’s.  One day, in the Summer of 1929, he overheard an elevator boy boasting about how much money he had made in the stock market.  Joseph Kennedy reasoned that if totally-uneducated low-income employees have now been attracted to the stock market, then the prices must be at their all-time highest.  So, he raced to the floor of the stock exchange and famously yelled: SELL!  For months, his friends laughed at him as prices kept rising and rising and rising.  Then, one day, October 29, 1929, the market crashed.  Joseph Kennedy and his family were safe.  They had no money whatsoever in the market.

Joseph Kennedy waited.  Prices fell.  He waited.  Prices fell.  Then, one day, in 1932, a full three years later, he bought a chain of department stores at 5¢ on the dollar.  He bought the real estate, the buildings, the inventory, the goodwill – everything at a 95% discount.  He then parlayed that brilliant purchase into a fortune that spawned a political dynasty of famous and politically successful Kennedy’s, including one President John Kennedy.  His wealth and his influence will last for centuries – because he had the courage to go against the conventional wisdom.  He played the INNER game instead of just reading the newspaper headlines.

Joseph Kennedy SOLD when everyone was buying.  Then, he BOUGHT when the Depression was at its very worst.  He made a gigantic fortune BECAUSE of The Great Depression.  We are not in a Depression now, but we are in a serious Recession.  And, you can make your fortune right now – BECAUSE of the Recession.

The story of Warren Buffett

For years, Mr. Buffett was the greatest stock market investor of all time.  Indeed for almost four decades.  However, in September of 2008, something amazing happened.  A sudden shock to the financial markets occurred in which several banks failed, banks which had been around for over a 100 years.  Banks which had survived a decade of The Great Depression.  They failed.  Huge financial organizations failed.  The Big Three Auto Manufacturers are on the verge of failing.  And, the headlines screamed all this bad news.  In the midst of this whirlwind of disaster, Warren Buffett was quoted in gleefully exclaiming: “I’ve been waiting for this day for ten years!”  Warren Buffet knew the secret – that the flip side of financial disaster is gigantic opportunity.

What both Mr. Kennedy and Mr. Buffett have taught us with their actions is that it is NOW the time to seize opportunities.  Right now.  What others call a “lousy” economy, the wisest businessmen know is the greatest opportunity.  Seize it!!

Raymond Aaron,New York Times Top Ten Bestselling Author, “Double Your Income Doing What You Love” published by John Wiley and Sons, New York City.

Claim your Gifts From Raymond“to double your income”. It’s free.

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Warren Buffett on Business: Principles from the Sage of Omaha

  • ISBN13: 9780470502303
  • Condition: NEW
  • Notes: Brand New from Publisher. No Remainder Mark.

Product Description
The proven business principles of Warren Buffett Warren Buffett is one of the most admired and prolific investors and managers in corporate America. Warren Buffett on Business is a timeless guide to strategies that can help you run a successful business. This book is a one-of-a-kind collection of Buffett’s letters to the shareholders of Berkshire Hathaway written over the past few decades, and in a clear, simple style distills the basic principles of sound busine… More >>

Warren Buffett on Business: Principles from the Sage of Omaha

Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor

  • ISBN13: 9780470152621
  • Condition: NEW
  • Notes: Brand New from Publisher. No Remainder Mark.

Product Description
When Warren Buffett Speaks. . . people listen. “If people want to improve their investing skills, it has to help to study how the Master does it. This short book outlines Buffett’s philosophy and techniques.”
—Peter S. Lynch, Fidelity Investments “Common sense with a deft irony . . .”
—John C. Bogle, founder of The Vanguard Group and author, The Little Book of Common Sense Investing “It was Warren Buffett’s thoughts and … More >>

Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor

Berkshire Hathaway Brk.a : Maximize Your Profits From Warren Buffett Stock

Berkshire Hathaway BRK.A : Maximize Your Profits from Warren Buffett Stock
by Dr. Steven Lee (Ph.D)

What is the problem investors’ face when buy Warren Buffett’s stock Berkshire Hathaway?

Although Berkshire Hathaway (BRK.A) is one of the most expensive stocks in the stock market which cost investors US$100,000++ per unit, there are still some investors willing to purchase the stocks.

May be due to the share is “Value-To-Buy”, the investors always buying and hold the stock without selling.

But the secret is how to maximize the profits from Berkshire Hathaway by just change one simple thing …

Buy low sell high 3-5 times a year.

Stocks are not meant to be bought and held for 5-10 years nowadays. I know this is not the principle for Warren Buffett’s concept.

But to maximize the profits from Warren Buffett stock, you need to buy, hold then sell the stock for 3-5 times a year.

Sounds crazy? Below is the secret …

Find the Bottom Price

Why you need to find the bottom price of Berkshire Hathaway stock?

Three reasons:

1. Make your investment safe – Buy Berkshire Hathaway stock at the lowest price can prevent you from buy high and cannot sell higher.

That’s what happens to 95% investors, chase high but not manage to sell even the stock price drop.

And the drop for Berkshire Hathaway stock price is not play play lor, the price can drop nearly US$20,000 – US$30,000 each time. It’s a big amount too.

2. Maximize your profits – Buy Berkshire Hathaway stock at the lowest price, hold then sell it for higher profit by follow buy low sell high principle.

Instead of hold for 5-10 years, you only need to trade 3-5 times a year.

Less worries during market down, because you still enjoy your profits without holding a down trend stock.

Many investors just hold the stocks and look at it up and down without profits or dividends. I think you also believe this is not the right way to invest.

3. Minimize your risk – Bottom price is also a good cut loss point for investors to reduce their losses.

In the other hand, if we can make more than loss, that is consider a good investment.

Maximum Return – Minimum Loss = Good Investment

How to find the Bottom Price

Well, you may use sophisticated global investment software “INSIDERS” to help you find the bottom price. This is the ONLY online application software which helps you to identify the bottom price of Warren Buffett stocks.

Below is the “INSIDERS” chart for Berkshire Hathaway (BRK.A), the signals show that how you can trade 3-5 times a year for a good and stable company stocks like BRK.A and BRK.B as well.

Please click the link. http://www.fatnrich.com/images/brka.JPG

INSIDERS save your time from analyzing the bottom price of Berkshire Hathaway.

You don’t have to make analysis by viewing the reports and reading the news of Berkshire Hathaway stock.

Besides, it is simple and easy to use, even your kids can do it!

————–
Dr. Steven Lee (Ph.D) is the #1 best-selling author of “Create Wealth in Stock Market” and “The Magic Idea of Getting Rich”. Details at www.DrStevenLee.com or www.FatNRich.com

Dr. Steven Lee (Ph.D) is an investor, entrepreneur, and educator. He has spent the last few years writing books and conducting investment trainings. He is the creator of “Power System” and also the author of two books on how to invest in stock market. His first two books, Creating Wealth in Stock Market and The Magic Idea of Getting Rich, are two of the most practical investment books in the market place.

Some Lessons From Warren Buffett’s Annual Letter

Warren Buffett’s annual letter to Berkshire Hathaway shareholders was released over the weekend. Readers will find plenty of investing lessons among the twenty-three pages. Warren began this letter as he begins each letter, by stating Berkshire’s change in per-share book value:

“Our gain in net worth during 2005 was $5.6 billion, which increased the per-share book value of both our Class A and Class B stock by 6.4%. Over the last 41 years, (that is, since present management took over) book value has grown from $19 to $59,377, a rate of 21.5% compounded annually.”

Some may wonder why Buffett opens by announcing the change in per-share book value rather than the earnings per share number. Over long periods of time, the change in per-share book value should nicely approximate the returns to owners. You may remember that, in my analysis of Energizer Holdings, I applauded the company for reporting comprehensive income within the income statement. Although a company’s net income is often referred to as its bottom line, net income is, in fact, a (sub)component of comprehensive income. Energizer Holdings (ENR) literally reports comprehensive income as its bottom line.

FASB merely requires that “an enterprise shall display total comprehensive income and its components in a financial statement that is displayed with the same prominence as other financial statements that constitute a full set of financial statements”. Unfortunately, despite the lack of attention paid to it by investors, the statement of changes in stockholders’ equity is considered “a financial statement that constitutes a full set of financial statements”.

Therefore, comprehensive income can be reported in a statement many investors either do not review or do not understand. Alternatively, a company may choose to report comprehensive income in a separate Statement of Comprehensive Income. This, of course, baffles many investors, who think they are reading a second copy of the income statement. After all, what is comprehensive income? Isn’t the net income number reported in a (traditional) income statement a comprehensive number?

No. The widely reported earnings per share number is not comprehensive. That isn’t to say the EPS number isn’t important. It is very important. In fact, for certain businesses, it may be the most useful figure for evaluating a going concern. This is especially true if the investor is only looking at the financials for a single year. A single year’s comprehensive income may actually be less representative of a business’ performance than a single year’s EPS number (both can be pretty unrepresentative).Remember, the earnings per share number does not tell you how much wealth was actually created (or destroyed). You need to look to the comprehensive income number to find that information.

Essentially, Buffett is reporting Berkshire’s earnings in that opening line. He is simply using a more comprehensive income figure. He’s saying here’s how much wealth we created, and here’s how much capital it took to create that wealth. When he writes “Our gain in net worth during 2006 was $5.6 billion, which increased the per-share book value of both our Class A and Class B stock by 6.4%” he’s really saying Berkshire earned $5.6 billion and a 6.4% return on equity. He prefers using comprehensive income rather than net income, because comprehensive income includes non-operating earnings such as changes in the market value of available for sale securities.

If you still have doubts about the idea that Buffett is essentially reporting Berkshire’s comprehensive income in that formulaic opening line of his annual letters, compare the change in net worth numbers Buffett has reported in past years to the comprehensive income numbers found in Berkshire’s annual reports. For the past three years, Berkshire’s reported “gain in net worth” and Berkshire’s reported “comprehensive income” were $5.6 billion vs. $5.5 billion, $8.3 billion vs. $8.2 billion, and $13.6 billion vs. $13.4 billion. I hope this helps explain why I like it when public companies prominently report comprehensive income instead of presenting net income as if it were the Holy Grail of investing.

Of course, there is no such Grail. Neither net income nor comprehensive income captures the true economic changes to an owner’s share of the business. There is no truly comprehensive income number – and there never will be. A review of the financial statements alone is not sufficient to determine how a business’ competitive position has improved (or deteriorated) over the course of the year.

“Every day, in countless ways, the competitive position of each of our businesses grows either weaker or stronger. If we are delighting customers, eliminating unnecessary costs and improving our products and services, we gain strength. But if we treat customers with indifference or tolerate bloat, our businesses will wither. On a daily basis, the effects of our actions are imperceptible; cumulatively, though, their consequences are enormous.”

It is to these actions and their effects that an investor must look when he is forming his qualitative assessment of a business. After all, a company may lose money and yet improve its competitive position. In fact, that is exactly what a great many young businesses do. The question, of course, is whether those present losses will be more than offset by future gains after accounting for the opportunity costs incurred.

All costs are opportunity costs. It makes no sense to evaluate a year’s losses as if the alternative was to stop time. The available returns on the lost capital must be considered as well. That is why when one of Berkshire’s units has consumed capital, the loss has weighed heavily on Buffett.

Over Berkshire’s history, the cost of any losses also included the over twenty percent compound annual gain that was foregone. Buffett has always been painfully aware of the fact that, for Berkshire, losing $1,000 today would be much the same as losing over $7,000 ten years from today or over $125,000 twenty-five years from today. Berkshire will no longer grow its per-share book value at over 20% a year. So, these particular figures are outdated. However, if you refer to Buffett’s thoughts at the time when the Buffalo News was losing money (and when Berkshire’s textile operations were losing money), you will see just how heavily these opportunity costs weighed on him.

Still, it is possible that a business operating at a loss is actually improving its competitive position and creating wealth for its owners. One very difficult question that must be answered is exactly what the assets (often the intangible assets) that have been gained at great expense are actually worth. In some very special businesses, huge expenses are fully justified.

“Auto policies in force grew by 12.1% at GEICO, a gain increasing its market share of (the) U.S. private passenger auto business from about 5.6% to about 6.1%. Auto insurance is a big business: Each share-point equates to $1.6 billion in sales.”

“While our brand strength is not quantifiable, I believe it also grew significantly. When Berkshire acquired control of GEICO in 1996, its annual advertising expenditures were $31 million. Last year we were up to $502 million. And I can’t wait to spend more.”

This excerpt helps explain why I think all the money PetMed Express (PETS) puts into cable TV ads is money well spent. Pet medications, like auto insurance, is a highly fragmented business. Sales volume is important. Obviously, name recognition is as well. PETS can spend a lot on cable advertising and still spend less per sale than its competitors. It’s also important to remember that pet medications are rarely the sort of thing a customer buys once (just like auto insurance). While you won’t be able to retain all your customers, you will have a much easier time getting a current customer to stick with you than you will getting a new customer to switch from a competitor.

I’ll end this post with one of Buffett’s best lessons:

“Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.”

Geoff Gannon writes a daily value investing blog and produces a twice weekly (half hour) value investing podcast at Gannon on Investing.

Some Great Investment Ideas From the Master of Investment, Warren Buffett

Value investing made simple: Here I write about great ideas from Warren Buffett, and share some ideas about making money on the stock market. Let me share some great investment ideas and concepts of value investment from the famous Buffett with you:

1. Many people buy stocks and see them as pieces of paper that give dividends or capital appreciation. Yes, that is actually what stocks are, but Warren Buffett suggests a different approach. Why not see stocks as parts of businesses? Every stock certificate is linked to a company. Stocks are indeed linked to businesses, and the prices of the paper stem from the businesses. This key insight means that the stocks yield money when the businesses are healthy. You can therefore make investment decisions by asking the following questions:

Is there a market for the product? Is the particular company doing well now and does it seem likely to do well in the future? Is the company under good management, or are the people in control known for not being trustworthy?

Simply put: see the stocks as linked to businesses, and apply fundamental analysis to make money on the stock market. Warren Buffett reads a lot of annual reports and therefore he makes a lot of money when the decisions turn out right.

2. Use market fluctuations to your own personal advantage to make money in the stock market. This is a great idea. Warren Buffett and Ben Graham often talk about Mr Market. This is an allegory. It goes like this: A man called Mr Market turns up every day and quotes prices. He is basically a price quoter and does nothing but quote prices, and you must decide whether to buy or to sell. Market fluctuations therefore help you if you can sell to Mr Market when he quotes high and buy from him when he quotes low. Mr Market is occasionally optimistic and then again sometimes pessimistic, but as long as you buy and sell at the right prices, there is no need to worry because you will make money. Why? … because you are able to profit from folly and profit from market fluctuations.

3. Another metaphor here : Warren Buffett once mentioned a bridge and suggested that you do not drive heavy trucks over a bridge meant for heavy loads, but rather, you drive light trucks over a bridge that can bear more load. This is the idea of margin of safety. This is also a key concept: the margin of safety in investment.

Another way of looking at it would be: it’s better to buy a dollar for 40 cents than it is to buy a dollar for 70 cents. This enables you to make money. The key learning point is this: We learn the value approach. Just as we do not want to fall over a precipice by driving a heavy truck over a bridge, and just as we want to make money by buying dollars cheap, we should do the same for stock investments. We should have a margin of safety.

4. Last but not least, use common sense. This is a great idea but may prove harder than the more technical aspects of value investing, like margin of safety and fundamental analysis, and other elements of Buffett’s system. The reason is that this needs to come via experience. Diversification may not be a good idea if you know what you are doing, but if you don’t then diversification might save you. That kind of common sense is sometimes counterintuitive and may take some time to acquire.

What have we learnt here in this short article on value investing?

Don’t see stocks as paper!

Profit from folly; don’t join in!

Always have a margin of safety.

Use your investment common sense.

Hope you glean several insights from this article. Thanks for reading and cheers!

My site has more on <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=http://ideasonhowtobecomerich.blogspot.com/>ideas on how to become rich</a>, so do drop by and visit me for more investment education and financial education.

Shawn Seah writes on diverse topics, mainly investment and education. He has a site on ideas on how to become rich as well as How to Learn German Fast,, Get Your Uni Degree Online and more.

8 Money Secrets From Warren Buffett

We all have someone whom we admire and respect. For me one person on my shortlist is Warren Buffett who is sometimes referred to as the “Sage of Omaha”. I first heard about Buffett back in 2001 when I first started getting serious about investing and so I started reading all the titles with his name on it. Off course Buffett hasn’t actually written any of them but they were priceless none the less.


If you have never heard of Buffett, Forbes currently ranks him as the third richest man in the world and he is arguably the world’s greatest investor. He has amassed his fortune by making astute investment decisions and investing in businesses. Here is what I have learnt from Buffett:


1. Rich Is A State Of Mind

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.” – Warren Buffett


The difference between being poor and being rich is really just a state of mind. Poor people think thoughts of poverty and lack, rich people think thoughts of abundance and prosperity. Your beliefs are going to determine the way you perceive wealth, the decisions you make and the way you act towards it.


2. Success Is More Than About Your Bank Balance

When asked by CNBC what is the secret to success, Buffett replied “If people get to my age and they have the people love them that they want to have love them, they’re successful. It doesn’t make any difference if they’ve got a thousand dollars in the bank or a billion dollars in the bank… Success is really doing what you love and doing it well. It’s as simple as that. I’ve never met anyone doing that who doesn’t feel like a success. And I’ve met plenty of people who have not achieved that and whose lives are miserable.”


3. Spend Less Than You Earn

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” -Warren Buffett


It seems like common sense advice and you’ve no doubt heard financial experts preaching about it for years. You can’t possibly get ahead financially if you’re spending more than your paycheck. Buffett is famous for living a simple and frugal lifestyle. He is the only billionaire I know that still lives in the same house he bought back in 1958 for $31,500. He drove a 2001 Lincoln Town Car for years which he bought second hand. Buffett has a net worth in excess of $52 billion and yet lives off an annual salary of $100,000. The relative percentage of his spending based on his overall net worth is minuscule.


4. Avoid Consumer Debt

The sooner we realize that consumerism is a social plague that has been propagated by billion dollar marketing machines to keep you shackled to your job, the sooner we can stop spending money on useless stuff. It is a fool’s game to spend today so that you can work tomorrow to pay it off. It is a losing proposition because one day your working days are going to be over but the debt is still going to be hanging over your head. Clever marketing has convinced our society that to be happy you have to have more, be more and do more. Buffett abhors consumer debt instead choosing to use debt wisely by leveraging it in investments.


5. You Are Who You Associate With

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” -Warren Buffett


If you want to succeed financially you need to associate with people who are most conducive to encouraging and cheering on your financial journey. If the people you associate with see money as evil, object to capitalism and find wealth a foreign concept then your financial health and well being is going to be influenced by their views. Whether we like it or not we are all influenced to some extent by the people we spend our primary time with. If you aspire to achieve financial security then you need to find a mastermind of people in your life whom you can all encourage and help each other.


6. Gambling Is A Fools Game

“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” – Warren Buffett


While we are young and naive we choose to take risks with our money that are dumb and stupid. Trying to hit a home run with your money every time is a losing proposition with long term consequences. To chase investments that offer a high rate of return you must also assume that it also comes with a higher rate of risk. Bill Gates once quipped “Warren’s and my betting has always been confined to $1 bets” when talking about them paying poker together. If two billionaires take risk management this seriously, it’s time we average punters did the same thing.


7. Give Back To The Community

“Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.” – Warren Buffett


They say that to have more you need to give more. A contradiction in terms, maybe, but it’s a simple truth that is as enduring as time. As the bible says “It is more blessed to give than to receive -Acts 20:35”. Buffett has announced in 2006 that he was giving away over $30 billion to the Bill and Melinda Gates Foundation making it at the time of writing the largest charitable donation in history. He also contributes large sums to his children’s charitable foundations.


8. Generosity and Abundance Goes Hand In Hand

“Even though Ben Graham [Buffett’s mentor] had everything he needed in life, he still wanted to give something back by teaching, So just as we got it from somebody else, we don’t want it to stop with us. We want to pass it along too.” – Warren Buffett


A famous bible quote goes: “What benefit will it be to you if you gain the whole world but lose your own soul?” – Mark 8:36. The path to wealth isn’t a solo endeavor. How sad would life be if you come to the end of your life and there is no one to share it with. So as you journey on your path to financial abundance remember that there will be many people who generously helped you on your journey so it is only fitting to pay it forward when the opportunity arises. Generosity with your time, with your money, with your resources are great virtues to have. The greatest ally to building a strong friendship is to help others achieve what they want from life.


I leave you with this last quote “You only have to do a very few things right in your life so long as you don’t do too many things wrong.” – Warren Buffett

Being 4 Eva Young is not about age, it’s about attitude. 4 Eva Young is dedicated to inspire, motivate and encourage anyone who is young at heart to live a life of significance filled with peace, joy, and contentment. For more information visit: http://www.4evayoung.com