Lessons From Warren Buffett’s See’s Candies Acquisition

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Lessons From Warren Buffett’s See’s Candies Acquisition

“Let’s take a look at what kind of businesses turn us on. And while we’re at it, let’s also discuss what we wish to avoid.” In his 2007 Berkshire Hathaway annual letter, Warren Buffett provides us with a primer on what to look for in businesses, and on what to avoid. He also does something rare – he gives us a detailed post-mortem analysis of his 1972 purchase of See’s Candies. Both have a lot of gems of wisdom for us to enjoy and learn from.

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How To Put Together An Investing Soccer Team That Can Win

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How To Put Together An Investing Soccer Team That Can Win

With the World Cup coming up, I thought it was timely to share a mental model that I find helpful in constructing a portfolio. Don’t get me wrong, I am not trying to gamify investing. Far from it – I take my responsibility for our capital very seriously. However, I frequently find that other disciplines have a lot to offer in helping me think about how to best invest, and this is one of those times.

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My Journey To Chess Mastery

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My Journey To Chess Mastery

I grew up in the former Soviet Union, where almost everyone played chess to some degree. It was also something that was studied very rigorously from an early age by those who wanted a chance to excel, the same way that math or science was. In St. Petersburg, the best chess school was at the “Dvorets Pionerov” or the “Palace of the Pioneers.” That’s where future Grand Masters trained, typically from an age of 5.

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Warren Buffett’s Big Investing Mistake

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Warren Buffett’s Big Investing Mistake

Warren Buffett is the world’s most successful investor. Yet, even the best make mistakes, as any good investor knows. Analyzing Warren Buffett’s mistakes in depth can make you a better investor. In the just-released 2020 Berkshire Hathaway annual letter, Buffett briefly tells us about a recent, big, mistake: Precision Castparts (“PCC”). Let’s dive in and see what we can learn.

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What’s Missing From Howard Marks’ “Something Of Value”

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What’s Missing From Howard Marks’ “Something Of Value”

I have been a long-time reader of Howard Marks’ memos, which I find to be insightful, and this one, titled “Something of Value” was no different. In fact, I think this was one of Marks’ best memos. And yet, there were also several important things missing, which if not discussed are likely to leave the readers with an incomplete understanding of the subject.

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3 Insights From Warren Buffett at Berkshire Hathaway’s 2020 Annual Meeting

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3 Insights From Warren Buffett at Berkshire Hathaway’s 2020 Annual Meeting

Warren Buffett is idolized by many as the world’s greatest investor of all time. This is well-deserved based on the amazing amount of wealth that he has created for himself and others over decades. Unfortunately, if you were expecting that Buffett’s wisdom at Berkshire Hathaway’s 2020 annual meeting was going to yield easy answers about the current investment landscape, you are likely to be disappointed.

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Today’s Financial Bubbles: Avoiding Colossal Loss In A Strange Investment Climate

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Today’s Financial Bubbles: Avoiding Colossal Loss In A Strange Investment Climate

This is as precarious an investment environment as any that I have experienced during my two decades of investing. Prices of many securities and asset classes are optimistic, in some cases bordering on irrational. When the pendulum of the market swings so far towards greed, we need to be even more careful than we usually are in our capital allocation. Just because most market participants are in a generous mood does not decrease the amount of uncertainty facing businesses. What it does is make it very easy to lose large amounts of money and hard to make good returns.

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