Is It A Good Time To Invest?

– With the current situation in the financial markets we have seen stock prices drop significantly over the past 12 months.  Reaction & bailout measures by the Fed (US) in an attempt to instill investor confidence & calm the financial markets.  They claim they “got it right this time”, and will avoid such messes in the future.  As a result we’ve also seen the stock market surge incredibly in the last 3...

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Warren Buffett (Berkshire Hathaway) Stock Portfolio – Update 2008 Q2

Warren Buffet’s Berkshire Hathaway stock updates for the second quarter of 2008: New Additions: NRG [NRG Energy] – 3,238,100 shares were purchased. The N.J. based power wholesaler owns 49 power plants with a total capacity of 24,120 megawatts. It is involved in construction & operation of power generation facilities, the transacting in and trading of fuel and transportation services, and the trading of energy, capacity...

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Berkshire Hathaway 2008 Q2 Results

– Profit at Berkshire Hathaway (BRK.A / BRK.B) decreased 8%, due to weaker results from insurance underwriting. – Insurance underwriting profit decreased 43% to $360M. Earned premiums increased 5% to $6.23B. – Net income decreased to $2.88B, or $1,859 per class A share, from $3.12B, or $2,018, a year earlier. – Operating profit declined 10% to $2.27B, or $1,465 per share, from $2.51B, or $1,625, a year earlier....

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Investment Risk

Many times I have come across the phrase “investing is risky”, particularly when it comes to stocks/securities. I don’t think this is true, in a sense that when people say “risky” they really mean to say that the risk of loss is large and therefore it is unsafe. Generally, not knowing what the risks are in a particular investment, or not having the necessary knowledge, is what makes investing in anything...

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Warren Buffet's Favorite Bank, Wells Fargo, Is On Sale

The financial sector got hammered yet again. Shares of Wells Fargo (WFC), one of Warren Buffet’s favorite banks, and a large holding of the Berkshire Hathaway portfolio has also been hammered. Today it went down as far as $23.96 at one point! Like Warren Buffet & Benjamin Graham (Buffet’s teacher) stated, the intrinsic value calculation is only an approximation of the true value. Everyone’s calculated intrinsic...

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