Apr 02

In a speech given in New Delhi March 25, 2011, the chairman of Berkshire Hathaway, Warren Buffet predicted the decline of the U.S. dollar.

The billionaire investor warned investors to avoid “long-term fixed-dollar investments” such as 10-year U.S. Treasury bonds. Buffett worries that the $2.3 trillion in new money the US government has pumped into the economy, when combined with interest rates so low they’re practically giving money away, are combining to dilute the value of the dollar.

U.S Dollar Projection: Forecast : Prediction

As a result, Buffett warns: “If you ask me if the U.S. Dollar is going to hold its purchasing power fully at the level of 2011, 5 years, 10 years or 20 years from now, I would tell you it will not.”

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Feb 27

In Warren Buffet 2011 Letter to Berkshire Hathaway Shareholders, Warren Buffet made an interesting forecast on the direction of the  USA housing market.

The sage of Omaha suggested a housing recovery will likely begin within the next year, which would help the economy and several Berkshire subsidiaries, including ones that make carpets and bricks.

If Buffet is right then expect a pick up of mortgages and a rise in house prices going into 2011 & 2012.

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Jan 11

The biggest investing dilemma for an investor is knowing when to buy or sell stocks. The best investing quote as to when to buy or sell stocks has to be the following investing quotes by Warren Buffet.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

The following quote came from Buffet in 2010 at the height of the Credit crisis explain why he was buying stocks when others were selling.

When it’s raining gold, reach for a bucket, not a thimble.

This investing quotes should be a guide on when to buy or sell stocks

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Oct 26

Warren Buffet is the current CEO of Berkshire Hathaway. Buffet has led the investment company since inception. At 80, the talk now is who will be Berkshire Hathaway next CEO.

The following are some of the contenders as per internet rumour mills.

1. Charlie Munger

He has been Warren Buffet right hand man for decades. But there is a little problem of his age, at 86 he is a long short to be next CEO.

2. Ajit Jain

He is a Berkshire manager, who runs the National idemnity business.

3. David Sokol

The chief of huge Berkshire subsidiary MidAmerican Energy and recently installed CEO of NetJets, has also been viewed as a top contender.

4. Todd Anthony Combs

On 25 October 2010 Warren Buffet announced 39 Year old Todd Anthony Combs had been hired after a three-year search to “handle a significant portion of Berkshire’s investment portfolio.”. The internet went into a frenzy tipping him as Berkshire Hathaway next CEO.

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Oct 26

The latest business news is that Warren Buffet, the Oracle of Omaha has tapped 39-year-old Todd Anthony Combs to manage a major part of Berkshire Hathaway investment portfolio.

That appointment will only and fuel to burning question? Who will succeed Warren Buffet? Is Todd Anthony Comb the chosen one?

Is he Berkshire Hathaway Next CEO

Todd Anthony Combs, who is CEO and portfolio manager at Greenwich, Conn.-based Castle Point Capital Management, will “handle a significant portion of Berkshire’s investment portfolio,” Buffett, 80, said Monday, in announcing Combs’s hiring.

Todd Anthony Combs is by birth a Floridian who graduated in 1993 from Florida State University with majors in finance and multinational business operation.

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Oct 16

Warren Buffet is recommending buying or investing in stocks instead on bonds. From a Motley Fool blog post:-

Warren Buffett said this week that investors that are buying bonds at current yields are “making a mistake,” offering the following investment advice on asset allocation:

“It’s quite clear that stocks are cheaper than bonds,” Buffett said. “I can’t imagine anyone having bonds in their portfolio when they can own equities, a diversified group of equities.”

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Sep 18

Warren Buffet once said, We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

Businessweek has an article of how investors this years are frustrated by stock returns and are now running away from stocks.

Americans continue to be wary of stocks. The Standard & Poor’s 500-stock index is almost unchanged since the end of 2009, and mutual fund investors have yanked money from equities for four straight months. Activity in the options market shows that concern has never been higher that stocks will plunge. At the same time, other indicators, including cash flow and dividend yields, suggest equities are attractively valued.

The article continues to make an argument as to why investors should jump back into stocks. Read the rest of the article at Businessweek

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Jul 26

If you are asking the question whether this is a good time to invest in the stock market? Then read the following investing check list that will guide you to answer that question.

Are you young?

If you are in your 20s this is the best time to start investing in the stock market. Young investor have the advantage of time. The more time you have the more money you can invest over time.

Do you have the capital?

Most investors reason you should start investing immediately you have the capital. If you you keep the money in the bank you run the risk of spending the money.

The Price Earning Ratio.

Is the the Price earning ratio at historical low. A low P.E is a sign of a bargain more so if the company earnings are projected to remain stable.

Governement stimulus

Government stimulus have a habit of giving an economy a big kick. All that government money goes into the hands of consumers, who spend the money in making purchases. That consumer demand boosts companies revenue and profits. Higher profits translates to higher share prices.

Market Psychology

The best investor to explain this concept is Warren Buffet in the following quote

“Be fearful when everyone is greedy and greedy when everyone is scared”

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Jul 20

Warren Buffet is arguably the best investor in the world. Over the years Buffet has shared his ideas on investing. Most of this ideas are found in his annual letter to Berkshire Hathaway shareholders.

In this article I share some of the investment gems by Warren Buffet.These ideas can used as an investment guide to investing in stocks.

1. Buy and Hold.

This idea of buy and hold is synonymous with Warren Buffet. He buys into company’s and seems to hold the stocks forever.

2. Buy Stocks That You Understand.

Buy into companies which you understand their products and services. Warren Buffet is quoted saying “Stick to what you know. Bill Gates is a good friend, and I think he may be the smartest guy I have ever met. But I don’t know what this little things do. So I didn’t invest in Microsoft.

3. Always Have Spare cash

The reason why Buffet seems to do better then the rest is because he always has spare cash. During periods of crisis, he uses the extra liquidity to take advantage of opportunities.

4. Buy When Everyone is selling and Sell when everyone is buying.

He was quoted in 2009 saying “When it’s raining gold, reach for a bucket, not a thimble.”

5. Don’t Be Fooled By the Media Buzz / Euphoria

Charlie Munger his trusted lieutenant was quoted “avoid businesses whose futures we can’t evaluate, no matter how exciting their products may be.”

6. List down your reasons for buying a stock.

When your force yourself to write down your reasons for buying a stocks it prevents you from making dumb decisions.

7. Understand The Behaviour of the Crowd

A simple rule dictates my buying: Be fearful when others are greed and greedy when others are fearful.

8. Understand The Value in the Business

As he said in 2009 letter to investors, “In the end, what counts in investing is what you pay for a business — through the purchase of a small piece of it in the stock market — and what that business earns in the succeeding decade or two.”

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Jul 09

Warren Buffet is having a look at how his company, Berkshire Hathaway is performing and is convinced the US economy is on the upswing.

In  a 2010 yahoo finance and huffington blog interview the famous investor was quoted saying : -

The stimulus is working

If you feel the massive stimulus is not working for you, Buffet may disagree

“We’re hiring,” he adds, referring to many of his Berkshire Hathaway companies.

Buffet then painted a sunny picture for the US economy

The stimulus is working and the economy will improve in the next 2-3 years.

If you doubt Warren Buffet predictions Just remember his nick name is the Oracle of Omaha

To watch the full interview visit yahoo finance

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