Value Investing News

Once a company reaches a certain size, significant growth is difficult to sustain. Knowing this, savvy investors looking for growth will turn to small-cap stocks. This week week, I screened my dividend growth stocks database for Small- and Mid-Cap stocks with a yield and dividend growth at or above 4%. The results are presented below:

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So, what is your greatest wealth building asset? Everyone is born with it. Few realize its importance until they lose most of it. The asset is so valuable it can't be bought. Your most valuable wealth building asset is...

After each quarter-end, I review my asset allocation and year-to-date total returns by category. The attached PDF contains my actual asset allocation as of 2011-Q2. Below is a high-level summary of the information contained in the PDF:

A member of the Value Investors Club named Den1200 has valued Berkshire Hathaway B shares at $125.05 per share in his March 28, 2011 write-up of the company. The $125 valuation is over 60% higher than Berkshire’s current trading price of about $77.

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The recent discussions about how the David Sokol matter reflects on Warren Buffett and Berkshire Hathaway has been largely impacted by the recency effect. Wikipedia defines this as, “The tendency to weigh initial events more than earlier events.”

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.

Warren Buffett's surprised the financial world this week when he selected Todd Combs as Berkshire's next CIO. The selection of Combs only further shows Buffett’s adherence to his core principles and bodes well for Berkshire shareholders.

The article is the second part in a series which explains why a good business is characterized by high returns on capital. It discusses how Buffett measures returns in Berkshire's manufacturing, service and retailing operations segment and how you can use this tool in analyzing your own investments.

Article performs a complete side-by-side comparison of Warren Buffett's stock portfolio and Lou Simpson's stock portfolio. Both invest on behalf of Berkshire Hathaway (BRK.B). Simpson invests for GEICO.

Geoff Gannon goes through Berkshire Hathaway (BRK.B) 13F and separates Lou Simpson's GEICO portfolio from Warren Buffett's own buys and sells. This article lists the 22 stocks in GEICO's portfolio and the amount allocated to each.

Describes the proven investing process that Bruce Berkowitz used to beat the S&P 500 by over 13% during the last decade and build wealth for himself and his investors.

Discusses an article in today’s Wall Street Journal about the possibility that Li Lu will eventually be named as one of Warren Buffett’s successors. Includes analysis of the article and links to resources on Lu and his prominent investment in BYD.

Goldman Sachs’ June 29, 2010 report on Berkshire Hathaway. Goldman Sachs calculates that the total intrinsic value of the Class A shares is $171,235. They calculate the “Target Intrinsic Value” as $152,399 based on the fact that it has historically traded at 89% of their calculation of intrinsic value.

Geoff Gannon interviews Tariq Ali, author of the Street Capitalist value investing blog. In this 38 minute interview, they discuss Tariq's investments past and present. Stocks include: Fairfax (FFH), Madison Square Garden(MSG), and Air Transport(ATSG).

Bud Labitan is a fellow value investor and the author of Valuations – 30 Intrinsic Value Estimations in the Style of Warren Buffett and Charlie Munger. I recently met with him on the campus of Purdue University Calumet at the School of Management.