News That Matters

Tag: Warren

Warren Buffett’s favorite steakhouse fits his modest style

Warren Buffett’s favorite steakhouse fits his modest style

Finance
Earlier this month, I went to Omaha, Nebraska to cover Berkshire Hathaway's annual shareholder meeting and had the chance to eat at Gorat's, Warren Buffett's favorite steakhouse. Being there, it became clear why the humble stock market sage likes it so much: It doesn't go out of its way to make a splash. Buffett, one of the richest men in the world, drives around in a car he reportedly bought for less than $ 50,000. He also lives in the same house he bought for $ 31,500 in 1958. For breakfast, Buffett goes to McDonald's, where he spends no more than $ 3.17, and eats alone. In many ways, Gorat's strikes the same modest, low-ke...
Warren Buffett on how he turned a $300,000 bet into $2 million for charity in 10 years

Warren Buffett on how he turned a $300,000 bet into $2 million for charity in 10 years

Finance
Warren Buffett believes investors do not need to be brilliant to do well in the financial markets.The Oracle of Omaha made a winning 10-year bet with Protégé Partners in Dec. 2007 that the S&P 500 would outperform a basket of fund of hedge funds.But perhaps more interesting than how a simple index fund beat out some of the brightest Wall Street minds is what Buffett did with the initial proceeds for the bet.He explained in his 2017 annual letter to Berkshire Hathaway shareholders released on Saturday how he turned his $ 318,250 outlay for the bet into $ 2.2 million for the Girls Inc. of Omaha charity."Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarit
Should I follow Warren Buffett's 90/10 investing strategy?

Should I follow Warren Buffett's 90/10 investing strategy?

Finance
I'm in my early 50s, have more than $ 1 million in retirement savings and plan to retire around age 60. I've heard about Warren Buffett's strategy of keeping 90% of one's assets in stocks and 10% in bonds and like the idea of investing my savings that way to earn higher returns. I know my accounts would take a hit if stock prices fall, but I believe I could survive a market downturn. Do you think this is a good strategy for retirees and near retirees?—C.P. Anyone who's followed the strategy of putting 90% of their money in stocks and 10% in bonds that Warren Buffett mentioned in his 2013 letter to Berkshire Hathaway shareholders — would have done very well in recent years. After all, since that missive was released in March 2014, stocks have returned nearly 60%, while the broad taxable bo
Investing lessons from Warren Buffett's $9 billion Oncor 'stumble'

Investing lessons from Warren Buffett's $9 billion Oncor 'stumble'

Finance
Berkshire Hathaway recently made investment headlines with its agreement to purchase the power-transmission company Oncor for $ 9 billion in cash, a would-be coup for the legendary billionaire, as it would have chipped away at Berkshire's bloated cash balance (of nearly $ 100 billion).Disappointment, however, came in the form of Sempra Energy, which swooped in with an offer of $ 9.45 billion. This made headlines, some of which characterized the chain of events as a "stumble" by Buffett, even insinuating that the Oracle of Omaha might be losing his deal-making chops.A recent article in Fortune quotes an equity analyst who argues that Berkshire's loss of two large acquisition opportunities this year "calls into question the effectiveness of their gentleman's agreement acquisition strategy,"...