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Archive for July, 2007

Berkshire Annual Letter 1997 (Part 2)

When Warren Buffett cannot find a well-run and sensibly-priced business with good economics, he will put his money into very short term instruments. While these investments are likely to result in profits, they could also sometimes lead to losses of substantial size.

On the other hand, an investment into a wonderful business bought at an attraction price WILL always make money. It is only a matter of when.

At year end 1997, Berkshire had three non-traditional positions.

…Continue reading » Unconventional Investments

Swisscash Has Been Busted

About nine months ago, I gave a warning about a potential scam called Swisscash. Apparently, looks like they have been busted. Extract taken from the Business Times:

IN an unusual move, the Securities Commission, Malaysia’s capital markets regulator, has taken civil action against the promoters of an alleged investment scam over the Internet that could have bilked Malaysian and other investors by as much as RM285.5 million (S$126.7 million).

…Continue reading » Swisscash Has Been Busted

A few days ago, Warren Buffett was at Hillary Clinton’s presidential campaign fund raising. There was a short Q & A session at the event during which Buffett shared his views on certain topics including:

US as a net debtor nation, US tax rates and private equity, congress and US tax disparities.

…Continue reading » Hillary Clinton Talks with Warren Buffett

The gain in networth for Berkshire in 1997 was $8.0 billion, a good 34.1%. According to Warren, this return was no big deal. When the market goes on a bull run, any investor can get large returns.

It is important to recognise this and not become over-confident of one’s investment abilities during a bull run.

In fact, the S & P index rose almost as fast as Berkshire. Berkshire tends to underperform the S & P during a market boom. The reason is that Berkshire always has to pay tax, something that neither an index nor a mutual fund needs to pay.

…Continue reading » Berkshire Annual Letter 1997 (Part 1)

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