Saturday, June 20, 2009

My Hero : Warren E. Buffett

Dear readers,

I'm back after an extremely long hiatus. Now that I'm back, I would like to share with you wisdoms from the most successful investor of all time, Warren E. Buffett. It was Sir Isaac Newton who first said, "If I have seen further than others, it is by standing upon the shoulders of giants." As Warren has over 60 years of superior record, we should attempt to learn and grasp as much as possible from him. He is one of the giants. All the wisdoms, thinking, words, quotes, etc, are from one of the following sources:

1) Berkshire Hathaway annual report
2) Notes/transcript from Berkshire Hathaway meetings (from Whitney Tilson website)

May all those who embrace his wisdoms and teachings be financially enlightened.

Warmest regards
Brian Chan


Penny Stocks said...

Why is it that everybody buys the most popular stocks. If you do this your are doomed to get only average returns over time. Why not focus on decent companies that are extremely undervalued instead. I bought a stock called seaboard corporation About 7 or 8 maybe 9 years age something like that and paid 190 dollars a share. I sold my shares about 5 years later for 2500 hundred dollars. The company was profitable when I bought it and profitable when I sold my shares. Bear in mind I would not say anything that I cannot back up believe me. I will give an example of a compny of really decent quality that I consider really undervalued. the company is Bunge Limited symbol {BG} engages in the agriculture and food businesses worldwide. The stock currently trades around 60 dollars a share. I think the stock could easily get to 450 dollars a share over the next five years. Yes you heard right four hundred and fifty dollars a share assuming their are not stock splits. And what do I base this on If the companies profit margain expands from around 1.75% to 4% over the next five years and if the sales of the company expand from 55 billion to 85 billion thats about 7 or 8 percent a yearand if the companies stock than trades at a price earnings ratio of 20. Keep in mind that their are stocks that are popular that trade at much higher price earnings ratios than 20 times earnings one example is whole foods market it currently trades at 35 times earnings..
keep in mind that bunge is a company of really decent quality not at all a high risk stock. It has the potential to leave a company like proter and gamble in the dust. I understand your skepticsm if you are reading this but go to any stock broker of financial planner CPA that knows how to value stocks and they confirm everything that I Im saying here. I have never heard warren buffett say a word about bunge this should be the type of classic value stock that warren buffet should be investing in yet its never been refered to a single time by warren.


Warren has sure made a name for himself.