Berkshire Beyond Buffett: Final Chapters

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This is the final post of my live-tweeting and highlighting of professor Larry Cunningham’s book, Berkshire Beyond Buffett. I’ve practically run out of superlatives…. ValueWalk (dot-com) reported Berkshire Beyond Buffett was among the top-10 books purchased in 2014 by its readers. I suspect the momentum will continue this year. If you’ve missed any of the tweets or posts, see them in order here: IIIIII, and IV (and follow on Twitter: @ActiveInvesting).

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Berkshire Beyond Buffett: Modesty and Simplicity

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This is my fourth installment of notes and summary tweets of Larry Cunningham’s perspicacious book, Berkshire Beyond Buffett: The Enduring Value of Values. If you’ve missed any of the tweets or posts, see them in order here: I, II, and III (and follow on Twitter: @ActiveInvesting). I’ve selectively shared nuggets from Larry’s book and I’m finding Twitter’s 140 character limit to be just-right for capturing some of the highlights to share with others that will also spark my memory of the greater detail in the book; this also preserves the bulk of Larry’s hard work.

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Berkshire Beyond Buffett: Values

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Here’s my latest installment of notes I’ve compiled while I continue to read Larry Cunningham’s wonderful book, Berkshire Beyond Buffett: The Enduring Value of Values. Chapter 6 (“Kinship”) is one of my favorites thus far. It seemed to come alive and really epitomize “the enduring value of values.” I will continue to shares notes in this way as it’s much more efficient (posting a summary of my live-tweets) than trying to go back and put my notes into prose. One-third finished reading, I can already say that Berkshire Beyond Buffett is a keeper for me and should be on your reading list if not already. See my earlier posts (I and II).

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Berkshire Beyond Buffett: Insurance Notes

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Berkshire Beyond Buffett - Larry Cunningham (Columbia Business School)Larry Cunningham is one of the most respected authors who has written about Warren Buffett and Berkshire Hathaway. His Berkshire Beyond Buffett: The Enduring Value of Values is proving to be an informative read thus far — last week I posted some notes and takeaways from the first few chapters. This time I’m sharing more of the same from the remainder of chapter 3 as well as chapter 4, which is the first chapter of the second part of the book.

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Susan Decker on the Magic of Berkshire Hathaway’s Returns

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Susan Decker’s recent panel discussion comments pointed out some of the magic behind Berkshire Hathaway’s returns. There is nothing new for Berkshire followers and investors, except the tax-free comment that Decker made got me thinking. Buffett’s baby is simple conceptually (i.e. float-supported — Decker didn’t mention float, by the way — with cash flow rich capital allocation to, and flow back from, operating subsidiaries and portfolio securities) and has performed brilliantly in terms of the annual and cumulative profits/investment returns achieved. See’s Candies is one heck of an example (see the BBB link below).

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Berkshire Beyond Buffett Notes

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The rent is too damn high and the weather is too damn cold. Can I interest you in an all-weather portfolio? All kidding aside, if not already in your possession, get Larry Cunningham’s Berkshire Beyond Buffett: The Enduring Value of Values and enjoy the latest of Larry’s deep dives into Berkshire Hathaway (BRK.A, BRK.B). To keep these posts short I’ll share some interesting Berkshire Beyond Buffett notes every few chapters or so.  Continue reading

ビーピー・カストロール株を利益確定

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先程のツイート

アベノミクス開始約一ヶ月前ビーピー・カストロール()の株を買い始めた。日本にしかない全体市場と銘柄の割安度。しかも黒字でROEも割高の会社は珍しくない。更にビーピー・カも高配当だった。いよいよ5015の人気・株価が行き過ぎて完全に利益確定した。 

利益確定:

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Warren Buffett: 85% Fisher, 15% Graham

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In John Train’s The Midas Touch (Amazon; recent post), published in 1987, he describes Warren Buffett as 85% influenced by Benjamin Graham and 15% by Philip Fisher. After re-reading Fisher’s Common Stocks and Uncommon Profits and typing up 15+ pages of notes to substitute for a future re-read, I am convinced that Buffett is much closer to 85%-Fisher and 15%-Graham, and he was arguably already leaning more Fisher-like than Graham when Train began writing about him. Put Common Stocks on your reading list and consider a re-read if it’s already on your shelf. Continue reading

Business Adventures notes

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Like many others, I became aware of John Brooks’ Business Adventures after the recent WSJ essay by Bill Gates wherein Gates said the book was his favorite of the business genre and that it was Warren Buffett’s recommendation to him in 1991 when he asked Buffett for his best business read (the story goes that Buffett mailed Gates his personal copy and Gates has kept it to this day). I’m in the middle of chapter three (about the U.S. federal income tax) but wanted to share a few notes from the first chapter, “The Fluctuation: The Little Crash in ’62” [chapter two is a 50-page entry about the failed Ford Edsel, a rather quick, enjoyable and informative read]. Continue reading

When to sell a stock?

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For many investors, dyed-in-the-wool value investors especially, buying a stock is not as simple as inputting a buy order — as in value investors need to have done their research and fundamental analysis, the company ought to have for instance some sort of moat (and be a compounder whose shares are priced reasonably if not cheaply) or be trading at a discount to x variable(s) [e.g. margin of safety via current or tangible assets; resource conversion opportunity], and one must have the capital available to establish a position. Further, how much stock does one buy at first; how much of an order will get filled for a smaller cap company? Although, once a position is established and fully-invested, it ought to be more of an auto-pilot mode in the sense of turn off the “quote machine” and let the company work for you. Continue reading