Thursday, 5th May 2016

2016 Annual Berkshire Hathaway Shareholder’s Meeting

Written by George Traganidas Topics: Presentations, Stock Investing, Wealth Building

Berkshire Hathaway meeting

Berkshire Hathaway held its 51st shareholder’s meeting in Omaha on Saturday 30th of April. This was the first year that the meeting was also broadcast live through Live Feed Video and it will be available for 30 days after the meeting. This caused a drop in the number of people who attended the meeting this year in Omaha, because they could watch the event from home.

Here follow my notes from the meeting. The notes will not cover all the topics and they are my attempt to summarise their most important points.[…]

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Tuesday, 12th April 2016

Value investor’s guide to company valuation

Written by George Traganidas Topics: Books, Stock Investing

Company Valuation

The job of an investor in the stock of a company is to estimate a fair value for the company and then determine if the stock is trading for more or less than that price in the market. Buying companies for less than they are worth in the market is the basis of value investing. This style of investing became popular with Benjamin Graham and many people continue to practice it with success.

This post is based on the teachings of Bruce Greenwald. Bruce Greenwald is a professor at Columbia University’s Graduate School of Business and he holds the post that Benjamin Graham did. Bruce continues to teach company valuation based on the principles that Ben pioneered. The information in this post is drawn from Bruce’s lectures in Columbia, his book “Value Investing: From Graham to Buffett and Beyond” and from various presentations and talk he gave.[…]

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Wednesday, 27th January 2016

Security Analysis by Ben Graham

Written by George Traganidas Topics: Books, Stock Investing, Wealth Building

Security Analysis by Ben Graham

Ben Graham published the second edition of Security Analysis in 1940 and many investors still consider it one of the best investment books ever written. The book is about 800 pages long and by no means is an easy read. This has discouraged a lot of people from reading the book and learning from the “father of security analysis”. The book does a great job of laying out the investment philosophy of Ben Graham and how to think about investments and businesses. He outlines principles about investing in bonds, preferred shares, warrant and common stocks and uses a lot of examples from companies in that era to demonstrate his thinking.[…]

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Monday, 14th December 2015

Quotes Various People

Written by George Traganidas Topics: Quotes

When facts change, I change my mind. What do you do sir?
– John Maynard Keynes

There is a huge difference between knowing the name of something and knowing something
– Richard Feynman

No matter how beautiful your theory, no matter how clever you are or what your name is, if it disagrees with experiment, it’s wrong. In this statement is the key to science.
– Richard Feynman

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Friday, 16th October 2015

Business Moats

Written by George Traganidas Topics: Stock Investing, Wealth Building

Moat

One of the tasks of an analyst who is evaluating a business is to think about the moat of the business. But what is a moat? A simple way to think about moats is to imagine that the business is a castle and the moat it what surrounds the business and keeps other businesses at bay. Every business has a moat, but the difference is the size and the durability. Some businesses have narrow moats and other have wide ones. Some business moats are shrinking as time goes by, whereas others are widening. Ideally an analyst wants to find a business with a wide moat that keeps widening. One of the characteristics of the capitalist system is that a profitable business will attract more and more competitors and these competitors will test your moat repeatedly. Thus, the more successful a business is the harder it is to keep being successful and widen its moat. […]

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Friday, 29th May 2015

What makes Berkshire Hathaway special?

Written by George Traganidas Topics: Stock Investing

Charlie Munger

This years shareholder’s letter included for the first time a piece that was written by Berkshire Hathaway’s vice-chairman Charlie Munger. In his letter Charlie, reversed engineered the culture of Berkshire; how it operates and how it is run. He explains that all this was not based on any grand design or blueprint that Warren devised 50 years ago, but something that grew organically. Here is what Charlie has to say:

The management system and policies of Berkshire under Buffett (herein together called “the Berkshire system”) were fixed early and are described below:

(1) Berkshire would be a diffuse conglomerate, averse only to activities about which it could not make useful predictions.[…]

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Tuesday, 26th May 2015

Investment advice from Warren Buffett

Written by George Traganidas Topics: Personal Finance, Stock Investing, Wealth Building

Warren Buffett

A lot of people are still wondering where they should invest their money. Should they buy some stocks or are they too risky and they should invest in bonds instead. In his speeches and writings Warren Buffett has always said that a diversified portfolio of American businesses will provide the best long term results as long as the investor buys and holds wonderful businesses for the long term. His approach is simple so anyone can follow it and it delivers results with minimum supervision over the investments and minimum loss of sleep. He has followed his own advice and over 50 years it has helped him to build Berkshire Hathaway into a successful holding company. He is a man who follows his own advice. […]

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Tuesday, 5th May 2015

2015 Annual Berkshire Hathaway Shareholder’s Meeting

Written by George Traganidas Topics: Presentations, Stock Investing, Wealth Building

Berkshire Hathaway meeting

This time every year thousands of people from all over the world are gathering in Omaha to hear the words of Warren Buffett and his partner Charlie Munger. This year the crowd was about 44,000 people and they were not disappointed. The meeting started at 8:30 with the annual movie and at about 9:00, Warren and Charlie started the Q&A session. They answered question for about six hours on every topics. As always no questions were off limit.

Here follow my notes from the meeting. The notes will not cover all the topics and they are my attempt to summarise their most important points. […]

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Sunday, 3rd May 2015

Who will succeed Warren Buffett?

Written by George Traganidas Topics: Stock Investing

Warren Buffett

This is the question that many shareholders are asking every year. Berkshire Hathaway has grown from a small textile company to the 4th largest US company under the leadership of Warren Buffett and his partner Charlie Munger. Now, a lot of people fear that when the two great leaders are not running the company any more, this great story will come to end, because in many people’s eyes Berkshire Hathaway is Warren Buffett. This is a valid concern. Or is it not?

As Charlie once said, when asked about the future of Berkshire, “If your main concern in life is who will succeed Warren then you have any easy life”. […]

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Sunday, 18th May 2014

2014 Berkshire Hathaway Annual Shareholder meeting notes and more

Written by George Traganidas Topics: Presentations, Stock Investing, Wealth Building

Berkshire Hathaway meeting

On Saturday 3rd of May I joined almost 38,000 other “students” to attend the master class for investors that is the Berkshire Hathaway annual meeting. People started queuing at 2:30 am on Saturday in order to get a front seat to listen to Warren Buffett and his partner Charlie Munger. A student was paid $100 to start queuing at 3:00 am for a shareholder who arrived at 7:00 am to take his place in the line. As per usual, Warren Buffett and his long time business partner Charlie Munger sat on stage in Omaha, Nebraska, for over five hours answering questions from reporters, financial analysts, and Berkshire shareholders. Many shareholders had travelled great distances to be part of the weekend.[…]

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