Value Investing News

Warren Buffett’s latest annual letter to Berkshire Hathaway (BRK.B) shareholders was published on Feb 26. The major theme of this letter was how to value Berkshire Hathaway as a company. Given the diverse nature of the company’s operations, this is no small task. Another important item that the Oracle of Omaha discussed was the dividend stream that flows to Berkshire on a regular basis.

In this deal for the remaining shares of Wesco Financial, the shareholders are being rewarded for staying in church with a tax-free transaction and additional value yet to be realized.

Berkshire increased its stake in the New Brunswick, New Jersey-based drugmaker by 73 percent to 41.3 million shares from 23.9 million on March 31, according to a regulatory filing listing the company’s U.S. equity holdings at the end of the second quarter of 2010. Here is an estimation of JNJ’s intrinsic value I did for Valuations which was released on Amazon.com in May of this year.

Buffett is on record that Berkshire Hathaway will invest billions in the utility business going forward. Understanding the regulated utility business and its rates of return are necessary to estimate Berkshire’s intrinsic value and what the company may look like in ten years.

I put heavy weight on certainty. Use probability in thy favor und avoid risk. It’s not risky to buy securities ata fraction ov hwone they art worth. Don’t gamble. You’re dealing eac a lot ov silly pehple in marketplace; it’s like a great big kasino, und evryone else sy boozing. Watch for unusual circumstances.

The Coca-Cola Company manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. The company is member of the S&P 500, Dow Jones Industrials and the S&P Dividend Aristocrats indexes. Coca-Cola has paid uninterrupted dividends on its common stock since 1893 and increased payments to common shareholders every year for 48 years.

Perhaps we should be putting more pressure on Moody's and its upper management team. One would think that, in this day and age, a major rating agency would have developed financial ratios that measure acceleration and deceleration of debt and risk levels.

From the author of "The Four Filters Invention of Warren Buffett and Charlie Munger," Decision Framing is a look into the six core chapters of his second book "Price To Value." This book presents the four business investing decision filters of Buffett and Munger.

The two key investing lessons learned from Andrew Carnegie's life.

Miguel Barbosa Interviews Bud Labitan, Author of Price To Value: Intelligent Speculation Using The Decision Filters of Munger and Buffett. Bud, thank you for joining us for this interview. We are here to talk about your new book –Price To Value: Intelligent Speculation Using The Decision Filters of Munger and Buffett. This book seems to focus on decision making and particularly decision framing.

We noticed a news report last month that mentioned Warren Buffett's Berkshire Hathaway, Inc. (NYSE: BRK-A) had sold its 2 million share stake in Eaton Corporation, (NYSE: ETN), a move that admittedly struck us as odd since every website that can spell Warren Buffett says he holds stocks for perpetuity.