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He was 13 when he first heard about trading stocks. Finally, he filters for volume with the "50-day average volume"— the average number of shares traded daily over 50 days — above 25,000 shares. He had been watching Nvidia's chart since December, and it had a consistent 200-day moving average trend upward. As of January 3rd, it held above its 50-day moving average, bouncing off resistance points around $8.83 and $8.94 with minor pullbacks. The stock had a strong 150- and 200-day average uptrend.
Persons: Leoš, Benjamin Graham's, William O'Neil, Mark Minervini, Norman Zadeh, Mikulka Organizations: Investor's, Gamestop, US, Business, Apple, Nvidia, Mitsubishi UFJ Financial, Holdings Locations: Prague, IBD
This year's annual meeting of Berkshire Hathaway shareholders kicked off with a video tribute to Berkshire vice chairman and Warren Buffett right-hand man Charlie Munger, who passed away last year at age 99. Buying great companies, rather than great valuesWhen citing Munger's most important lessons, multiple shareholders on the floor recalled a key early disagreement between Munger and Buffett. "I learned that it's better to buy good businesses at fair prices than pretty bad businesses at really great prices," said Jerone Gillespie of Maryland. "I think that's the same thing that Warren Buffett said was one of the most important lessons that he learned from him." But now that you control Berkshire, add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices," Buffett recalls Munger telling him in 1965.
Persons: Berkshire Hathaway, Warren Buffett, Charlie Munger, Munger, they're, I'm, Luis Lozano, Dean Miller, , We're, Buffett, Jerone Gillespie, Gillespie, Benjamin Graham, Warren, Ben Graham, cryptocurrency Organizations: Berkshire, CHI Locations: Omaha , Nebraska, Munger, Cancun , Mexico, Monticello , Minnesota, Jerone Gillespie of Maryland, Berkshire
The group kept lagging last year as markets braced for a recession that would especially hurt economically sensitive small caps. And although the market isn't on small caps' side, Rendino believes historical precedent is. However, Rendino isn't discouraged by small caps' slow start and is instead pleased that his firm is outperforming. "Small caps were up in the fourth quarter, and we're having a really good year," Rendino said. "And I know why companies aren't in the good graces of investors and why certain investors shy away from companies."
Persons: , Kevin Rendino, Rendino, Russell, He's, Rendino isn't, he's, we're, we've, Benjamin Graham, David Dodd Organizations: Service, Business, Capita, Federal Reserve, Capital, Federal
Warren Buffett shared a heartfelt tribute to the late Charlie Munger, calling his business partner of 60 years the architect of today's Berkshire Hathaway . "In reality, Charlie was the 'architect' of the present Berkshire, and I acted as the 'general contractor' to carry out the day-by-day construction of his vision," Buffett wrote. In a way his relationship with me was part older brother, part loving father." With much back-sliding I subsequently followed his instructions," Buffett wrote in the letter. Though I have long been in charge of the construction crew; Charlie should forever be credited with being the architect," Buffett said.
Persons: Warren Buffett, Charlie Munger, Berkshire Hathaway, Charlie, Buffett, Munger, Warren, Ben Graham, Benjamin Graham, jerked Organizations: Oracle, Columbia University, BNSF Railway Locations: Berkshire, Omaha, Dairy
Baupost's Seth Klarman dumped several stocks in the fourth quarter, while trimming some of his biggest holdings, including Google and YouTube owner Alphabet , according to a new regulatory filing. The hedge fund manager, who oversees almost $30 billion in assets , exited his stake in Coinbase , which was worth more than $70 million in the third quarter of 2023. After soaring 130% in the fourth quarter, Coinbase has retreated nearly 20% in the first quarter of 2024. Among Baupost's top holdings, the hedge fund cut its stakes in Alphabet , Fidelity National Information Services and Just Eat Takeaway. During his last CNBC appearance in mid-2023, Klarman warned of an "everything bubble," sounding the alarm on cryptocurrencies, SPACs and a host of other speculative trends.
Persons: Baupost's Seth Klarman, Coinbase, Baupost, John, Klarman, Benjamin Graham's, Warren Buffett, Graham, David Dodd Organizations: Google, Dollar, Seagate Technology, Metals, Solutions, Fidelity National Information Services, Liberty Global, CNBC, Boston, Harvard, Cornell grad Locations: Coinbase
The farm cost Buffett $280,000, a bargain after the 1980s bubble in farm prices burst, leaving many Iowa and Nebraska banks saddled with sour loans. NYU retail The second investment Buffett discussed was a New York retail property that he co-purchased in 1993 through an introduction by Larry Silverstein, Salomon Brothers' landlord when Buffett briefly stepped in as the investment bank's CEO. "If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on." Key to investing Through telling stories of such specific assets, the legendary investor taught his followers that what matters the most to any investment is its future earnings. If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on," Buffett said.
Persons: Warren Buffett, Buffett, Berkshire Hathaway, Larry Silverstein, Salomon Brothers, Benjamin Graham, Charlie Munger Organizations: Apple, New York University, Federal Deposit Insurance Corporation, Buffett, NYU, NYU wasn't, Columbia University Locations: Nebraska, New, Manhattan, Omaha, Iowa, New York
Warren Buffett is arguably the most celebrated investor of our generation, but he couldn't have earned the title without Charlie Munger's influence. Munger, Berkshire Hathaway's vice chairman who passed away Tuesday at the age of 99, was instrumental in directing a young Buffett into buying strong-brand quality companies instead of dirt-cheap failing names that he called "cigar butts." The blueprint Munger instilled in Buffett was simple: To buy a wonderful business at a fair price, not a fair business at a wonderful price. In 1972, Munger convinced Buffett to sign off on Berkshire's purchase of See's Candies for $25 million even though the California candy maker had annual pretax earnings of only about $4 million. "Overall, we've kept moving in the direction of better and better companies, and now we've got a collection of wonderful companies, Buffett said.
Persons: Warren Buffett, couldn't, Charlie Munger's, Buffett, Munger, Charlie Munger, Benjamin Graham, we've Organizations: Munger , Berkshire Hathaway's, Berkshire, Oracle, Columbia University Locations: Munger , Berkshire, Berkshire, Omaha, California
Berkshire Hathaway Vice Chair Charlie Munger arrives to begin the company's annual meeting in Omaha May 4, 2013. EXPANDING BUFFETT'S HORIZONSMunger and Buffett did differ politically, with Munger being a Republican and Buffett a Democrat. Like Buffett, Munger was a fan of the famed economist Benjamin Graham. ORACLE OF PASADENAFans dubbed Buffett the "Oracle of Omaha," but Munger was held in equal esteem by his own followers, who branded him the "Oracle of Pasadena" after his adopted hometown in California. "I was raised by people who thought it was a moral duty to be as rational as you could possibly make yourself," Munger told Daily Journal shareholders in 2020.
Persons: Charlie Munger, Rick Wilking, Charles Munger, Warren Buffett's, Munger's, Buffett, Munger, Berkshire Hathaway, HORIZONS Munger, Santa Barbara, Warren, Benjamin Graham, Charlie, Ben Graham, Charles T, Kathy Kristof, Buffett's, Ernest . Buffett, Olson, Wheeler, Alice Schroeder, Nancy, Graham, Heinz, Todd Combs, Ted Weschler, Nancy Munger, Jonathan Stempel, Diane Craft, Rosalba O'Brien Organizations: Berkshire Hathaway, REUTERS, Berkshire Hathaway Inc, Munger, CNBC, Buffett, HORIZONS, Republican, University of California, Berkshire, ORACLE, PASADENA, Oracle, Wesco Financial Corp, Daily Journal Corp, Daily, Los Angeles Times, University of Michigan, U.S . Army Air Corps, Harvard Law School, Tolles, Munger &, Omaha Club, BNSF, 3G Capital, Kraft Foods, Reuters, Thomson Locations: Omaha, California, Berkshire, Omaha , Nebraska, Vienna, Santa, Pasadena, Munger, TETE, Los Angeles, New York
In fact, the Berkshire vice chairman called it "insane" to teach that one has to diversify when investing in common stocks. "I have a friend who says the first rule of fishing is to fish where the fish are. We've gotten good at fishing where the fish are," the then-93-year-old Munger told the thousands of people at Berkshire's 2017 meeting. Big money is in the 'waiting'The investing sage believed that in investing, it pays to wait. Munger often defended Berkshire's inaction as he always saw the virtue of sitting on the sidelines to wait for a good opportunity.
Persons: Charlie Munger, Warren Buffett's, Buffett, Benjamin Graham, Munger, Berkshire Hathaway, We've Organizations: Columbia University, Berkshire, Costco Wholesale Corp, Price Club Locations: Berkshire, Berkshire's
TOKYO, Nov 17 (Reuters) - Warren Buffett's vote of confidence in Japanese trading houses is helping Mitsubishi Corp (8058.T) overcome long-held investor wariness about its complex global business that covers everything from sausages to natural gas, a top executive said. "Until fairly recently, being an industrial conglomerate had negative connotations," Kobayashi said in an interview. Appointed as the trading house's first chief stakeholder engagement officer in April, Kobayashi is now focused on wooing investors who focus on growth, not just value. Berkshire first announced roughly 5% stakes in August 2020, with Buffett saying the trading houses "have many joint ventures throughout the world and are likely to have more". read moreStill, Mitsubishi is trading at a price-to-book ratio of just a little over 1, or at almost no premium to the value of its assets.
Persons: Warren Buffett's, wariness, Berkshire Hathaway, Kenji Kobayashi, Kobayashi, Itochu, outperforming, Buffett, Benjamin Graham, that's, Anton Bridge, Miho Uranaka, David Dolan, Miral Organizations: Mitsubishi Corp, Berkshire, Reuters, Mitsubishi, Mitsui, Sumitomo, Tokyo Stock Exchange, Nikkei, Columbia University, Thomson Locations: TOKYO, Berkshire, Japan
The stock market tumbled into correction territory this week, spurring fear among investors that more turmoil is ahead. But if you are a disciple of Warren Buffett, a 10% drawdown for the equity benchmark shouldn't matter. "I know what markets are going to do over a long period of time — They're gonna go up. Buffett believes that when there's emotional selling in the market, it offers an opportunity for him to hunt for bargains. "Anytime stocks go down as far as I'm concerned, I like it because I'm a net buyer of stocks," he said.
Persons: Warren Buffett, Buffett, Benjamin Graham, They're, I've, Berkshire Hathaway, Stocks, aren't Organizations: Columbia University, CNBC, Berkshire, Oracle, Omaha, BNSF Railway, America, Dow, Cities Locations: Berkshire
A blowout September jobs report , surging bond yields and expectations for higher interest rates that last a while stoked big price swings in the stock market lately, leaving investors on edge. But in the stock market you get it," Buffett said at Berkshire's shareholder meeting in 1997 . "If you're an investor, you love the idea of wild swings because it means more things are going to get mispriced...Volatility is a huge plus to the real investor." 'Gambling mentality' Buffett's recent purchase of a big chunk of Occidental Petroleum is an example of taking advantage of market volatility. "We'd make a lot more money if volatility was higher, because it would create more mistakes in the market," Buffett once said.
Persons: Warren Buffett, Berkshire Hathaway, Buffett, Benjamin Graham, Graham, Charlie, we've Organizations: Berkshire, CNBC, Oracle, Columbia University, Occidental Petroleum Locations: Omaha, Berkshire, America
The chief executive officer of Berkshire Hathaway , with his legendary keen eye for value, thinks that bargains are rarely found in the IPO market. 'Ridiculous' commission Both Buffett and Munger have called the underwriting fees that investment banks charge for IPOs "ridiculous," saying they inflate IPO prices. Better in auction market The investment icon likens the stock market to an auction market where extraordinary bargains pop up now and again. By contrast, the IPO market resembles a negotiated deal where cheap securities are hard to come by. "In my view — you're way more likely to get incredible bargains in an auction market.
Persons: Warren Buffett, Berkshire Hathaway, Buffett, Charlie Munger, Buffett's, Munger, Goldman Sachs, Benjamin Graham, they're Organizations: Arm Holdings, Berkshire Hathaway, Oracle, Wall, Columbia University, Berkshire, BNSF Railway, Apple, Clayton Homes Locations: Omaha, Alleghany, It's
They are: BOCIP China Value A Fidelity China Focus A Dist USD Ninety One GSF All China Eq A Acc HKD The first two have a value-style tilt – and not only beat the MSCI China Index in the first half of this year, but also in all of 2022, according to Morningstar. Although both value and growth China funds have generally posted losses over the three years ended July 2023, growth has lagged value by 12% a year, Liang said. However, she was quick to point out that just focusing on a single investment style such as value versus growth isn't enough. In terms of Morningstar's fund ratings — based on factors the firm calls people, process and parent — Schroder's ISF China Opps and FSSA China Growth have gold ratings for strong performance in the "people" and "process" categories. Closely watching valuations helped Schroders China's portfolio manager take some timely profits on "some overheated information technology" stocks, Liang said.
Persons: Warren Buffett, , Claire Liang, Morningstar's, Liang, Benjamin Graham's, Goldman Sachs, It's, Timothy Moe Organizations: Morningstar, Fidelity, Acc, China, House Research Institute, Netflix, Suzhou Maxwell Technologies Locations: China, Fidelity China, Asia, Suzhou
Baupost Group's Seth Klarman picked up a few stocks last quarter during the market rally, including tech giant Amazon and discount retailer Dollar General . The billionaire hedge fund manager bought $125 million worth of Amazon shares in the second quarter when the e-commerce juggernaut rallied more than 26%. Klarman has traded in and out of Amazon in the past year. He also bought $41 million worth of Dollar General , as well as $36 million of Union Pacific shares last quarter. Shares of the retailer fell nearly 20% in the second quarter as it slashed its full year outlook after missing Wall Street's estimates for quarterly earnings.
Persons: Baupost, Seth Klarman, Klarman, Warren Buffett, Benjamin Graham's, Klarman hasn't Organizations: Union Pacific, Oracle, Boston, Liberty Global, ViaSat, Liberty Media, CNBC Locations: Union, Baupost
Baupost Group's Seth Klarman, nicknamed "the Oracle of Boston," is revered in value investing circles for his disciplined investment philosophy, maybe because his style has stood the test of time. The billionaire hedge fund manager has been an almost religious follower of Benjamin Graham's investing style, buying out-of-favor and undervalued assets to ensure a margin of safety. Klarman has drawn comparisons to Warren Buffett — Buffett being a student of Graham's at Columbia University — for his patient, disciplined investment style. The 66-year-old Harvard and Cornell grad published his investment book, "Margin of Safety," in 1991. The hedge fund manager posted a mid-single digit decline last year, beating the S & P 500 which fell nearly 20%, the Financial Times reported.
Persons: Baupost, Seth Klarman, Benjamin Graham's, Klarman, Warren Buffett — Buffett, Columbia University —, Benjamin Graham, David Dodd, Klarman hasn't Organizations: Oracle, Boston, Columbia University, Harvard, Cornell grad, CNBC, Financial Times Locations: Baupost
Seth Klarman has some words of advice for regular investors who are following the guidance of Warren Buffett, and others, and are putting their money into stock index funds. In other words, when using index funds, you have to stay in the markets to capture the upside when it comes. The notable value investor also gave one other word of caution on index funds. Many financial advisors recommend steady buying over time when investing in index funds. Klarman is the editor of the recently released seventh edition of Benjamin Graham and David Dodd's investing classic "Security Analysis."
Persons: Seth Klarman, Warren Buffett, Benjamin Graham, David Dodd's Organizations: Baupost, Bank of, Klarman
When billionaire hedge fund manager Seth Klarman looks at the investing world today, he sees asset bubbles pretty much everywhere. Historically low interest rates, even zero rates, have precipitated that bubble." With the investing world now ruled by trendy bubble-like investments such as Bitcoin and meme stocks, Klarman said the need for a sound, practical approach to investing is vital. In a letter to clients at the end of 2022, he accused the U.S. central bank of constructing a "financial fantasyland" of artificially low interest rates and liquidity pumping. In the current environment, investors face challenges relating to economic uncertainty and a central bank holding interest rates high to battle inflation.
Persons: Seth Klarman, we've, Klarman, Benjamin Graham, David Dodd, You've, Warren Buffett — Buffett, Columbia University —, Graham, Dodd Organizations: CNBC, Cornell, Columbia University, Buffett, Liberty, Federal Reserve Locations: Boston, U.S
Discounted closed-end funds aren't exactly the most headline-grabbing part of Wall Street. The elite investor also mentioned Elon Musk while explaining his fondness for these niche funds. "The majority of Warren Buffett's holdings when he was about to enter that class were discounted closed-end funds," Weinstein said. "In closed-end fund arbitrage, you can actually control your destiny," he said. Weinstein's firm takes activist positions in closed-end funds run by BlackRock and other big asset managers.
Persons: Boaz Weinstein, Taylor Swift, Warren Buffett, Elon Musk, , Scott, Weinstein, Benjamin Graham's, Warren Buffett's, Elon, Buffett, Ed Thorp, Warren Organizations: Service, Saba Capital Management, Bloomberg, Berkshire Hathaway, SpaceX, Twitter, BlackRock Locations: Wall
AI boom could expose investors’ natural stupidity
  + stars: | 2023-05-19 | by ( Felix Martin | ) www.reuters.com   time to read: +7 min
Indeed, enthusiasm about AI has become the one ray of light piercing the stock market gloom created by the record-breaking rise in U.S. interest rates. It’s a good moment for investors to be especially alert to the tendency of natural stupidity to drive stock market valuations to unrealistic – and therefore ultimately unprofitable – extremes. However, the most important lessons of behavioural economics relate to a more fundamental question: Will the new generation of AI do what it promises? Behavioural economics offers some cautionary tales for such attempts to apply AI in the wild. For example, stock market returns can be affected by a small number of rare but extreme movements in share prices.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWarren Buffett and Charlie Munger share their 100-year vision for BerkshireBerkshire Hathaway Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger preside over the 2023 Berkshire Hathaway annual meeting. Buffett and Munger share their admiration for Benjamin Graham and discuss the vision for the company.
Warren Buffett is set to kick off Berkshire Hathaway 's annual shareholder meeting Saturday before tens of thousands of adoring shareholders. Berkshire's annual "Woodstock for Capitalists" will be held in Omaha, Nebraska, the second straight in-person gathering after two virtual meetings during the pandemic. The question of Buffett's Activision stake is expected to come up at the annual meeting. Geico Berkshire shareholders will also be eager to learn more about what's next for auto insurer Geico , the crown jewel of Berkshire's insurance empire and Buffett's "favorite child." ESG issues There are a few ESG-related shareholder proposals being put to a vote at the annual meeting, including requiring Berkshire to publish an annual assessment of climate-related risks and publish data on its workforce composition by gender, race, and ethnicity.
A 33-year-old real-estate investor has become a tennis star after beating a former top-10 player. Pecotic counts Bill Ackman as a mentor, and compares his game preparation to day trading. "Being mentored by Bill Ackman continued to influence that hunger," Pecotic said. The moonlighting tennis star scours match tapes and other information sources to spot his opponents' weaknesses and refine his own game. "In our world, we are all about information, put the emotions aside – analytics, analytics, analytics," he said.
Warren Buffett has inspired generations of value investors, and one 53-year-old, market-beating mutual fund has his legacy all over it. For almost three decades, starting in 1979, the fund was run by another acolyte of value, Jean-Marie Eveillard. Since 1979, First Eagle Global has returned more than 12% annually, even including the 5% load fee charged on the first $25,000 invested. The fund employs three main elements when it comes to security selection within the universe of global value, Brooker said. When we're not able to find things that make sense to us, that meet our underwriting criteria, we'll wait in cash," Brooker said.
Insider's Phil Rosen asked ChatGPT to share book recommendations for someone looking to become a better investor. OpenAI's language bot listed five titles, including two with ties to Warren Buffett. ChatGPT generated a list of five books, including two that have ties to Berkshire Hathaway Chairman and CEO Warren Buffett. 'The Intelligent Investor' by Benjamin GrahamThis is the first book ChatGPT listed with ties to Buffett: Graham was one of Buffett's mentors. "These books provide a solid foundation for understanding how to invest in the stock market intelligently," ChatGPT concluded.
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