EppsNet Archive: Warren Buffett

EppsNet Investment Tips

27 Dec 2016 /

Shares of Warren Buffett’s firm Berkshire Hathaway soared 20% in 2016, helping to boost Buffett’s personal fortune by $12.3 billion – more than any other billionaire in the United States.

Forbes

Buy and hold . . . buy and hold.


I Don’t Understand What Warren Buffett is Talking About

27 Nov 2012 /
Warren Buffett speaking to a group of students...

Warren Buffett

In an op-ed for the New York Times, Warren Buffett argues that higher taxes won’t keep the super-rich from trying to make money:

Suppose that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.

Really, Warren? It’s an investment, right? It’s not a sure thing. It’s not a giveaway. I’m being asked to put money at risk. That’s the difference between an investment and a savings account.

So the number one thing that I want to understand before making the investment is what kind of a net return can I expect — worst case, best case, most likely case. Then I can decide if I’m being adequately compensated for the risk that I’m taking on.

And by net return, I mean after taxes, after commissions, after everything. How much money will I actually get to keep? And if I don’t think I’m being adequately compensated for the risk, then yeah, I’ll leave the money in my savings account.

Assuming a tax rate of, say, 35 percent, why does it not make sense to say, “I would take that risk for an expected return of $X, but not for an expected return of 35 percent less than $X?”

Related Links


Let’s Get Fiscal

17 Oct 2008 /
Lightning on the Balcony

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

BIG DEAL! I said the same thing last week!

Who needs Warren Buffett when you have a good dog?

Talking about Warren Buffett is making me hungry because his name looks like “buffet.” I wish someone would open an all-you-can-eat buffet restaurant for dogs.

I would invest in that . . .

— Lightning paw


The Forgotten Man, Ted Kennedy and Warren Buffett

16 Jul 2008 /

As Ted Kennedy has spent virtually all of his personal wealth on personal consumption of mansions, private jets, women, booze, etc., any help that he has provided to Americans has come at the expense of the “forgotten man” paying taxes. Ted’s own contributions to charity have been minimal (source).

Let’s compare to Warren Buffett. . . . Buffett has spent a negligible portion of his $60+ billion in personal wealth on personal consumption, giving almost all of it away to charity.

Perhaps Buffet is “the forgotten man.” He creates jobs by the thousands. He pays taxes by the $billions. He consumes very modestly considering his means. Yet Buffett is not considered a hero here in Massachusetts, at least.


The Individual Lemming

28 May 2005 /

John Maynard Keynes said in his masterful The General Theory: ‘Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.’ (Or, to put it in less elegant terms, lemmings as a class may be derided but never does an individual lemming get criticized.)


OC Real Estate Report

7 May 2005 /

I recently sold a house in Laguna for $3.5 million. It was on about 2,000 square feet of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre.


Warren Buffett Gets the Last Laugh

10 Mar 2004 /

Warren Buffett published his annual letter to Berkshire Hathaway shareholders this week:

Our gain in net worth during 2003 was $13.6 billion, which increased the per-share book value of both our Class A and Class B stock by 21%. Over the last 39 years (that is, since present management took over) per-share book value has grown from $19 to $50,498, a rate of 22.2% compounded annually.

Continue reading Warren Buffett Gets the Last Laugh