In my experience, there is one big difference between the equity markets of the UK and the US: dividends. For example, in the UK it’s pretty easy to find a large-cap stock with a dividend yield of more than 5%. A quick screen for companies with a market cap. in excess of £5bn that yield of 5% or more returns 12 results in a universe of 2733 stocks. More than half of these are FTSE 100 constituents. The FTSE 100’s average…
First published at ValueWalk.com What are the fundamental principles of value investing and how should you interpret them? Joseph Calandro, Jr., a Managing Director of a global consulting firm, Fellow of the Gabelli Center for Global Security Analysis at Fordham University, author of Applied Value Investing, and a Contributing Editor of Strategy & Leadership, published a paper earlier this year that seeks to answer this question. I should say now that this is only a brief summary of the paper…
Warren Buffett The Early Years — Part Seven: Work-Outs As covered in the last part of this series, Warren Buffett had three different types of investments when he was managing his partnerships. These three categories were: generals, workouts and control situations. Workouts, or special situations (corporate events such as mergers, liquidations, reorganizations, spin-offs,) are by far the most interesting of this group. Due to their nature, Buffett was able to predict what kind of a return he would generate from…
On February 15, 1999, Barron’s magazine published an opinion piece entitled, Why Value Investors Are Different. The article looked at one of the most important periods of Warren Buffett’s career and was written by none other than Seth A. Klarman. As usual, Seth Klarman’s insights are invaluable. So, here are some key takeaways from the article. Seth Klarman: Why value investors are different Seth Klarman begins his piece on Warren Buffett with the following statement: “The most dramatic and valuable…
This is the second part of a multi-part series on Warren Buffett’s early years. Before he acquired Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), Warren Buffett managed a number of partnership for select investors, family and friends. And it was the management of these partnerships and his actions in the first few years of managing Berkshire that laid the foundations for him to become arguably the greatest investor of all time. Part one of this series can be found here. Warren Buffett the early…
Following the my last ten part series on the life and career of Charlie Munger, Vice-Chairman of Berkshire Hathaway Corporation and Warren Buffett’s right hand man, in this series I’m taking a look at Warren Buffett’s early career. Before Warren Buffett became well-known, and before he acquired Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), he ran a number of partnerships, investing the money of family, friends and outside investors. It’s these partnerships that helped build his reputation and provided the funds for him…
**This post first appeared on ValueWalk.com. With over 43 pages of text, the Berkshire 50th anniversary letter cannot be summed up easily. Nevertheless, below are a selection of key quotes from the Oracle of Omaha‘s anniversary letter, which value investors may find useful. If you’re looking for a complete analysis of the Berkshire letter, I would highly recommend heading over to the Wall Street Journal. The publication as gathered three dozen Buffettologists, Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) shareholders, value investors and academics…
Table 5 is the record of a friend of mine who is a Harvard Law Graduate, who set up a major law firm. I ran into him in about 1960 and told him that law was a fine hobby but he could do better…”— Warren Buffett’s introduction to Charlie Munger in his essay: The Superinvestors of Graham-and-Doddsville. This is the fourth part of a six part series on Warren Buffett’s essay, The Superinvestors of Graham-and-Doddsville. Click to read the earlier…