Warren Buffett -- Top Stories

Buffett University

2008-12-10T06:11:00.000-08:00

Warren Buffett shared an idea on a Fox Business special called "Buffett University" that could inspire young value investors who don't have a lot of money to invest.

When Buffett was starting out he had less than $10,000. A "buy and hold" strategy just wouldn't be very fruitful with that little capital. So here's what he did to grow his wealth: He bought cheap stocks... and then sold them to buy cheaper stocks.

Get the full story right here.

Buffett's not afraid of bear markets

2008-12-02T07:28:00.000-08:00

Warren Buffett says he's seen bargain buys in 50 out of 60 years. And today's crummy market is no different. There are several strong, undervalued companies among the market rubble.

As The Motley Fool points out in the article on Buffett and the bear market, don't fret that the S&P 500 is down 40% year-to-date. Look at the long term. Historically stocks outperform almost every other type of investment vehicle over the long haul. So you should only panic if you've got a cash flow problem and you're forced to sell your holdings while they've taken a beating.

On the other hand, now's a perfect time to invest in Buffett-like stocks while share prices are very attractive. If you can afford to go without the cash for 5 or 10 years, you might want to consider buying some Buffett-like stocks.

Warren Buffett just bought 66 millions shares of ConocoPhillips (NYSE: COP)

2008-11-25T06:56:00.000-08:00

It was speculative among fellow Buffett watchers, but Nathan Slaughter from TopStockAnalysts.com just confirmed it:

"Between March and September, billionaire investor Warren Buffett picked up about 66 million shares (6%) of ConocoPhillips (NYSE: COP, $46.84), one of the world's largest integrated oil companies."

So what does Buffett like about this stock? Here's what Slaughter has to say:

"To start, the firm's exploration and production (E&P) business has operations that span nearly two dozen countries around the globe. Last year, producing wells from Alaska to Libya spit out 854,000,000 barrels of oil and over 5 billion cubic feet (bcf) of natural gas daily.

As for reserves, the company still has a mountain of 10.6 billion barrels of oil equivalent (BOE) waiting underground, and exploratory drilling in Africa, the Middle East, the North Sea and many other regions should add to that total going forward.

Conoco is also the nation's second-largest refiner, with 12 facilities capable of processing and converting oil into gasoline, diesel fuel and other products. From there, the firm's marketing segment operates a chain of 10,500 wholesale and retail outlets (Conoco and Phillips66) throughout the U.S. and Europe.

Outside of this core business, the company also has extensive midstream natural gas gathering and processing assets and a massive petrochemicals division that produces $13 billion in annual revenues just by itself.

Added up, you're looking at a company that has generated $25 billion in operating cash flow over the last 12 months on revenues exceeding $230 billion. Over the past three months alone, Conoco has raked in enough cash to repurchase $2.5 billion worth of stock, dish out $700 million in dividend distributions, and still have over $4 billion left over to upgrade facilities and expand exploration activity.

Of course, the windfall of profits from soaring commodity prices has died down for the time being, with crude backtracking from $147 per barrel to around $50. But don't feel too bad for Conoco -- the firm still banked over $12 billion in profits last year by selling oil at an average price of $67 per barrel (with an average production cost of $7.21 per barrel).

In other words, Conoco will still be immensely profitable even if oil prices continue falling. But it's the firm's strategic partnerships that really help it stand out. Decades ago, global oil companies had a world of opportunities to explore. But now, only a small fraction of the planet's oil reserves are accessible, as most have been locked up by national oil companies (think Venezuela) trying to hoard their own supplies.

But Conoco has proven that it can be a valuable ally, particularly when it comes to extracting the oil/gas from new discoveries. That's why the company has been able to strike lucrative deals with state-owned companies in Brazil, Abu Dhabi, and Saudi Arabia, among other places. The firm also has a valuable 20% equity stake in Russian giant Lukoil, and its investment in that oil-rich country has yielded almost $2 billion in profits so far this year.

However, despite all this, the shares have been cut in half since this past summer and can now be had for just four times earnings -- about half the pricier multiples commanded by rivals like Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM).

Many companies might be toppled by this harsh economic downturn, but Conoco will not be one of them. Now is an excellent time to buy this world-class energy company (and its valuable untapped reserves and foreign partnerships) for a deeply discounted price.

Thanks to the sharp downturn, these shares offer an attractive risk/reward profile and a respectable yield. I see COP at this level as a blue-chip stock that you can sleep easy owning. I estimate its fair value at about $87, which means I'm optimistic for a potential gain of +86% from current levels."

Obama might pick Buffett for Treasury Secretary

2008-11-13T20:39:00.000-08:00

Warren Buffett vs. Donald Trump

2008-11-13T20:29:00.000-08:00

Who would you rather work for -- Warren Buffett or Donald Trump?

While "The Donald" seems to motivate his people through intimidation -- "The Oracle of Omaha" does it through inspiration.

Beyond Buffett's reputation for profiting from undervalued stocks -- he's known for something equally as admirable: He seems like a great boss. Read the story here.

The Snowball: Warren Buffett and the Business of Life (Video)

2008-11-06T07:05:00.000-08:00

In this video interview, author Alice Schroeder discusses Warren Buffett and her biography about him, The Snowball: Warren Buffett and the Business of Life.

(See previous post for a review of this book)

Warren Buffett's role in an Obama Administration?

2008-11-04T18:13:00.000-08:00

We're still hours away from finding out who our next President is and there's growing speculation about how Buffett will benefit from an Obama victory.

Will Buffett be appointed Treasury Secretary? If so, there's one company in particular that is sure to profit. 24/7 Wall Street is on the story here.

Buffett contributes $1,150 to campaign

2008-10-30T19:56:00.000-07:00

Sounds like Warren Buffett and his wife both donated $1,150 towards Kevin Johnson's campaign.

If you're thinking what I'm thinking, then we're both thinking:

"Who the heck is Kevin Johnson?" and "Wait a second... $1,150?? Is there a decimal point missing?!" Get the story here.

Surprised that Buffett's announcement didn't help

2008-10-29T07:57:00.001-07:00

I've got to admit it... after Warren Buffett's recent "I'm buying American" announcement, I thought for sure the market would soar on investor confidence.

Well, I suppose it did on occasion since then -- yesterday being a prime example.

But it's also had those massive drops too. Weird.

I don't know about you, but I thought Buffett's announcement would have drove investor confidence to a level that would stabilize the markets quite a bit better than what we're seeing.

Nevertheless, here's another article about why Buffett is buying today. And as a bonus, this article reveals the names of 10 healthy, American stocks hand-picked by Zack's Investment Research that may be a bargain for value investors...

Was Warren Buffett wrong on taxes?

2008-10-29T07:25:00.001-07:00

Amidst the financial crisis, the richest man in the world recently stated that the government should raise taxes for the rich... pointing out that he's paying the lowest rate that he's ever paid in his life.

This comes at a time when Americans are just downright scared about the market. So naturally, any advice or wisdom coming from Warren Buffett is not taken with a grain of salt.

And with the Presidential election now less than one week away -- and the U.S. economic situation rising to the forefront of issues -- Buffett's opinions can certainly be used as propoganda to steer voters to one political party or another.

The question is, was Warren Buffett wrong about his comment on taxes?

Brian Sullivan gives one side of the story here.

Both History and Buffett tell you to buy stocks right now

2008-10-28T14:21:00.000-07:00

History class teaches us that history repeats itself.

Warren Buffett teaches us that the time to buy is when everyone else is afraid.

Dr. Steve Sjuggerud from The Daily Wealth put today's economic situation in pretty plain English: "It's time to get rich in stocks."

Be Like Buffet With These 3 Undervalued Penny Stocks

2008-10-27T12:15:00.000-07:00

Hold the horse... "Buffett" and "Penny Stocks" in the same sentence?

The idea is that while everyone is scared stiff to pump any more cash into the markets during this financial crisis... smart investors looking to bank big time should follow Buffett's lead and be greedy when others are fearful.

And that means scooping up the stocks that are absolute bargains right now. And according to Greg "Gunner" Guenther from the Penny Sleuth, there are 3 screaming bargains right now...

Get the names of these undervalued penny stocks right here.

The Snowball: Warren Buffett and the Business of Life

2008-10-27T11:53:00.001-07:00

Steve Weinberg posts a book review of "The Snowball: Warren Buffett and the Business of Life" by Alice Schroeder. His review is posted on The Christian Science Monitor.

Here's an excerpt from the book and the review...

"At age 9, already obsessed with earning money, Warren Buffett is playing in the yard with his younger sister, catching snowflakes.

"He starts to pack them into a ball. As the snowball grows bigger, he places it on the ground. Slowly it begins to roll. He gives it a push, and it picks up more snow. He pushes the snowball across the lawn, piling snow on snow. Soon he reaches the edge of the yard. After a moment of hesitation, he heads off, rolling the snowball through the neighborhood.

"And from there, Warren continues onward, casting his eye on a whole world full of snow."

Read Weinberg's review here.

"Buy American. I Am." Is Warren Buffett a Government Propagandist?

2008-10-25T18:22:00.001-07:00

No doubt you read the New York Times op-ed on Buffett last week where he gives his endorsement for buying American stocks.

Well, I just read an interesting take from Karen De Coster that poses the question: Is Warren Buffett a government propagandist? Read her post on Buffett's "Buy American" endorsement here.

What do you think?

Buffett photos at Fortune's "Most Powerful Women Summit"

2008-10-24T17:04:00.000-07:00

Looks like Warren Buffett enjoyed himself among a crowd of 350 women leaders earlier this month. Check out all the photos here.

"Not taking Warren Buffett's advice is like turning down gold lessons with Tiger Woods"

2008-10-24T07:58:00.000-07:00

The headline says it all ...

Why on earth would anyone ignore the investing advice of Warren Buffett right now?

Read the short article here. Credit goes to Andy Carpenter from Investor's Daily Edge.

Buffett's portfolio loses billions this year...

2008-10-23T17:50:00.000-07:00

Buffett's in the news almost every day. Everyone wants to know when he buys, when he sells, and frankly, if he's the richest or second richest man in the world (he seems to go back and forth every other day with his buddy Bill Gates)

But today Buffett made headlines for something else...

Go right here to see how the financial crisis has taken an unbelievable chunk out of the value of Buffett's Berkshire-Hathaway.

What Warren Buffett is Doing in this Unprecedented Market

2008-10-22T08:57:00.000-07:00

Warren Buffett has definitely seen his share of down markets. But he knows this is the environment where investors can find the best values. No wonder he just gave a resounding endorsement of U.S. stocks.

But what's Buffett seeing in today's market? In this issue, StreetAuthority's Nathan Slaughter explores what's behind the "Oracle of Omaha's" thinking. Read the full story here.

Credit: This story is written by Nathan Slaughter -- Editor of StreetAuthority's Half-Priced Stocks

Buffett's Loading Up on Preferreds with 10% Yields

2008-10-22T08:03:00.000-07:00

Warren Buffett has been on a buying spree lately.

While most investors have been downright spooked by uncertainty in today's turbulent market, Buffett has been pouring $8 billion into new investments over the last few weeks alone.

But Buffett's not just buying anything...

In fact, his latest investments are starkly different from the rest of his bellwether holdings... While the vast majority of Berkshire Hathaway's portfolio is made up of common stocks, almost all of his recent purchases have been preferred stocks with double-digit yields.

There are a number of compelling reasons why this little-known asset class is at a historically attractive buy point -- including their higher yields, safer income streams, and price stability. Obviously, these reasons aren't lost on Warren Buffett. Should we follow his lead? Read the full story here.

Credit: This story is written by Amy Calistri -- an Investment Analyst for Global Dividend Opportunities