Friday, February 10, 2012

Person to Person with Warren Buffett


  1. I do not believe that many folks realize this about Berkshire Hathaway. When buying shares in warren buffetts holding company they believe they are getting the same deal that someone buying shares in berkshire hathaway was getting in the past. I have heard warren buffett comment in interviews do not buy Berkshire Hathaway stock simply put because of the extreme popularity of warren buffett and his holding company and its great historical record of performance the shares generally trade at a premium not a good value investment. Another thing about Berkshire Hathaway that Warren Buffett has commented about in interviews is because of the enormous size of Berkshire hathaway the holding company is forced to buy large cap and mega cap stocks which generally do not deliver real large returns. But in spite of all of this talk from Warren Buffett many investors fail to heed his advice

    1. As Buffett himself has said, it's no secret that given the size of the company he can no longer compound returns like he did in the past. But does that mean Berkshire Hathaway is a bad investment? He has been written off as a has been many times before (think of the internet craze back in the late 1990s). Again, let Buffett do the talking on this issue. Earlier this year, Berkshire initiated its first stock buy-back program ever at 1.1 times book at around $75 a share. That is the price where Warren thinks his company is the best deal in the marketplace.