生活与风格的巴菲特方法论.pptxVIP

Life Styles of Warren BuffetTaro AokiJennifer LiuNirav ModyFez QamarRyan Vaughn AgendaBackgroundQualitative AnalysisQuantitative AnalysisMcDonald’s AnalysisConclusion An Exceptional ChildSold 6-packs of Coke for a profitBought his first shares at age elevenGraduated from college in 3 years while working full timeOnly student at Columbia to receive an A+ in one of Benjamin Graham’s classes A Great BusinessmanThe second richest man in the world with $ 20 billionTurned $105,000 into $300,000 in one year and returned 1,156% on the same portfolio after 10 yearsDirector 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 debaclePersonal investment moves are mimicked by the market Tenets of the Oracle of OmahaMarginal 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-LikeDoes not believe in the Efficient Markets HypothesisBelieves diversification is for idiotsDoes not care about market fluctuationsThinks investing is only correct when it is business-like Qualitative Analysis Investing From a Business PerspectiveLook at the economic ownership of businesses the common stock representsNot a horse race with numbers found every morning on the Wall Street Journal Warren Looks at…The annual EPS figureIts predictabilityThe market price Wall Street Looks at …They work for a commissionInterested in selling the priciest security they can find Do not care about the price at which they sell you the stock, so NO bargains EarningsGive back in form of dividends(-) Subject to capital gains tax (-) Cannot reinvest as wellRetain Earnings(+) Can reinvest better(+) Increases value of stock price The Compounding Rate of ReturnWarren’s real trick is to get a high annual compounding rate of return5%10%15%20%10 yrs $ 162,889 $ 259,374$ 404,555$ 619,17320 yrs $ 2