巴菲特方法论.pptVIP

Life Styles of Warren Buffet Taro Aoki Jennifer Liu Nirav Mody Fez Qamar Ryan Vaughn Agenda Background Qualitative Analysis Quantitative Analysis McDonald’s Analysis Conclusion An Exceptional Child Sold 6-packs of Coke for a profit Bought his first shares at age eleven Graduated from college in 3 years while working full time Only student at Columbia to receive an A+ in one of Benjamin Graham’s classes A Great Businessman The second richest man in the world with $ 20 billion Turned $105,000 into $300,000 in one year and returned 1,156% on the same portfolio after 10 years Director of Berkshire Hathaway which has had stock highs of $80,000 A Great Businessman (cont.) Was named CEO of Salomon Brothers in one day to solve bond debacle Personal investment moves are mimicked by the market Tenets of the Oracle of Omaha Marginal gains are a stupid reason to hold stock “Lethargy, bordering on sloth, should remain the cornerstone of an investment style” “Never invest in a business you cannot understand” Investing is Business-Like Does not believe in the Efficient Markets Hypothesis Believes diversification is for idiots Does not care about market fluctuations Thinks investing is only correct when it is business-like Qualitative Analysis Investing From a Business Perspective Look at the economic ownership of businesses the common stock represents Not a horse race with numbers found every morning on the Wall Street Journal Warren Looks at… The annual EPS figure Its predictability The market price Wall Street Looks at … They work for a commission Interested in selling the priciest security they can find Do not care about the price at which they sell you the stock, so NO bargains Earnings Give back in form of dividends (-) Subject to capital gains tax (-) Cannot reinvest as well Retain Earnings (+) Can reinvest better (+) Increases value of stock price The Compounding Rate of Return Warren’s real trick is to get a high annual compounding rate of return Philosophies Warren a