50 years of investment magic

Investment Perspective – March 2015

Peter Flannery CFP AFA

 

 

“Neither the investing method nor the fundamentals of the business are right or wrong because the mood of the market is favourable or unfavourable toward the “stock”. That is because when you really think about it, “stocks” (shares) are all about the financials and the trading price, the share price… the cash up value. What matters more is the economics of the business” 

Peter Flannery

 

Because it’s the 50th anniversary since the current management at Berkshire Hathaway took over the management of the company, I thought it appropriate to hear from the man himself, Warren Buffett, and his partner Charlie Munger.

 

Business Economics

Investing in the underlying business economics is one of the keys to Warren Buffett’s success and that of Berkshire Hathaway.  In other words they did not speculate on the latest news, the most recent profit number, a rising share price, the potential of a good sounding story.

 

They kept away from things they did not understand. 

Tom Watson, the founder of IBM, used to say “I’m no genius.  I’m smart in spots – but I stay around those spots.”

Good businesses are those that use capital well, consistently, and may not necessarily be the subject of popular conversation.

 

Investing magic

Click here to read the 2014 investment letter to shareholders …

There is plenty of wisdom in Warren Buffett’s latest annual letter to shareholders – enjoy.

 

©1987 – present WISEplanning. All Rights Reserved. The integral concepts are part of The Money M – A – T – R – I -X and Wise Asset Management and cannot be used without the written permission of WISEplanning. If you would like further information about The Money M – A – T – R – I -X programme other services and products, please telephone 03 375 7001, fax 03 386 0686 or email admin@wiseplanning.co.nz 

Attention: Any form of reproduction, or further dissemination of this content is strictly prohibited. The views and opinions expressed are those of the author, and are not necessarily those of WISEplanning, and are not intended to be a personalised service for an individual retail client. The views and opinions are general in nature, and may not be relevant to an individual’s circumstances. Before making any investment, insurance or other financial decisions, you should consult a professional financial adviser for personalised advice.

Any calculated projections or any predictions given by me to you are not guaranteed and are merely an expression of opinion and are intended for illustration purposes only.
Product performance can vary over time. The payment of a particular rate of return and the repayment of your capital is not guaranteed by myself, the company or any of its officers,  Historical information and performance may not necessarily be a good guide to future performance.

While every care has been taken to supply accurate information, errors and omissions may occur. Accordingly, WISEplanning accepts no responsibility for any loss caused as a result of any person relying on the information supplied.

Any mention of Warren Buffett or other successful investors is not intended to mislead anyone to think that WISEplanning or clients of WISEplanning will be as successful as Warren Buffett and other successful investors.

Click here to view our Disclosure