Don't make travel plans just yet for the funeral of Warren Buffett-style 'buy and hold' stock strategy. Marc Faber, the investor known as "Dr. Doom" tells CNBC the "Warren Buffett approach is dead ... and it's going to be dead for another ten years." But value investor Whitney Tilson makes the case that the "'Buffett way' is the best way to tame troubled times.
Berkshire Hathaway shares have bounced back to six-digit territory. They closed today (Friday) at $100,700 each, up $4,300 or 4.46 percent. It's the first close above $100,000 since November 14 for Warren Buffett's holding company.
Amid all the headlines asking if Warren Buffett has lost his "touch" as Berkshire Hathaway's stock tumbles, comes a Bloomberg story today headlined Buffett Stock Picks Beat Financials Index As He Dodged Subprime. The takeaway: Buffett's moves to increase Berkshire Hathaway's holdings of Wells Fargo and U.S. Bancorp, while avoiding subprime lenders, are "paying off."
With shares of Berkshire Hathaway down almost 50% from December, are investors losing confidence in Warren Buffett?
Warren Buffett tells Bloomberg today that more information about Berkshire Hathaway's derivative positions will be included in the company's annual report early next year. In an email sent by his assistant, Buffett says investors will be told about "all aspects of valuation" for the contracts. In addition, the report will discuss "deficiencies in the formula" for pricing the derivatives, "which we nevertheless use."
Barron's predicted last December that Berkshire Hathaway shares would take a tumble. They did. Now the magazine says Wall Street's worries about Warren Buffett's big derivatives contracts appear "overblown" and the stock is ready to rebound.
Warren Buffett doesn't appear to be worried about multi-year lows in the stock market. In an interview on Fox Business Network, a smiling Buffett says "it's happened before" and it's been even worse. As for the sharp drop in Berkshire's stock price, Buffett says that's also happened in the past and he jokes that he hopes he lives long enough for it to happen to him again several times in the future.
After falling for nine straight days, shares of Warren Buffett's Berkshire Hathaway have dropped almost 50 percent from their all-time closing high set last December. Berkshire closed today at $77,500 a share, down $6,500, or 7.7 percent. It's a fresh three-year low. Buffett's reputation as the world's greatest investor means the stock's big fall is getting lots of attention as some investors ask if he's losing his touch and other's defend him.
Warren Buffett drives a hard bargain. When he invests billions in a company, he can generally get a better deal than the rest of us. Now SmartMoney columnist James B. Stewart writes about "a rare opportunity to invest on terms that may be even better than Mr. Buffett got" for his $5 billion infusion into Goldman Sachs.