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Warren Buffett Watch

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  Friday, 14 Nov 2014 | 5:03 PM ET

Buffett backs Detroit with bigger GM stake

Posted By: Alex Crippen
Warren Buffett, Chairman and CEO of Berkshire Hathaway answers questions at a press conference at which Detroit was named the 11th city to be included in the $500 million Goldman Sachs initiative at Ford Field.
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Warren Buffett, Chairman and CEO of Berkshire Hathaway answers questions at a press conference at which Detroit was named the 11th city to be included in the $500 million Goldman Sachs initiative at Ford Field.

Warren Buffett's Berkshire Hathaway is showing some confidence in Detroit's attempted comeback as it puts more of its money behind General Motors.

In an SEC filing Friday afternoon, Berkshire said it held 40 million GM shares as of the end of the third quarter on Sept. 30.

That's an increase of 21 percent from the almost 33 million shares it owned three months earlier on June 30.

The additional shares are worth more than $223 million at GM's current price. The full stake is valued at almost $1.3 billion.

»Read more
  Thursday, 13 Nov 2014 | 12:00 PM ET

Duracell trade is sign Buffett is bearish on P&G

Posted By: Alex Crippen

Warren Buffett rarely sells stock. On Thursday, he unloaded Berkshire Hathaway's entire $4.7 billion stake in Procter & Gamble for P&G's Duracell battery business.

That's surely a sign the Buffett isn't all that confident about P&G's long-term future.

P&G, the global beauty and home products maker, added about $1.8 billion in cash to the deal. That values Duracell itself at about $2.9 billion. Buffett could presumably have just given P&G stock worth that amount and kept the remaining shares. Instead, he unloaded all 52.8 million shares and, like someone using a dollar bill to buy a 75 cent candy bar, got some change back.

Read MoreBerkshire Hathaway to buy Duracell from P&G

As Sanford Bernstein analyst Ali Dibadj told Reuters, "I don't take it as a good sign that Buffett would rather own Duracell than P&G."

»Read more
  Thursday, 13 Nov 2014 | 12:05 PM ET

Berkshire Hathaway to buy Duracell from P&G

Posted By: JeeYeon Park

Berkshire Hathaway announced Thursday it has acquired the Duracell battery business from Procter & Gamble.

P&G will receive shares of P&G's common stock currently held by Berkshire, which has a current value of nearly $4.7 billion. Procter & Gamble is one of Berkshire Hathaway's biggest stock holdings.

P&G said it would contribute about $1.8 billion in cash to recapitalize Duracell before the transaction.

Read MoreBerkshire Hathaway's 15 Biggest Stock Holdings

»Read more
  Tuesday, 11 Nov 2014 | 7:24 AM ET

Warren Buffett's 9 rules for running a business

Posted By: Alex Crippen
Warren Buffett
Adam Jeffery | CNBC
Warren Buffett

Warren Buffett is legendary as an investor, but he's also an incredibly successful businessperson, too—a fact that sometimes gets lost in the millions of words that have been written about his advice on how to buy a stock.

That advice can be summarized with a just a few words. Appearing on the CNBC-produced syndicated program "On the Money" last month, Buffett said, "If you own your stocks as an investment—just like you'd own an apartment, house or a farm—look at them as a business."

Using that viewpoint, you shouldn't buy a stock simply because you think it will go up in price sometime soon. Instead, you should buy a piece of a business that you think will generate profits for a long time to come.

That long-term perspective is also at the core of the business advice that Buffett has provided over the years.

Here are some examples from his annual letters to Berkshire Hathaway shareholders.

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  Tuesday, 21 Oct 2014 | 9:31 AM ET

Warren Buffett just lost ANOTHER $1B on this

Posted By: Ben Berkowitz

Spare a thought for Warren Buffett, whose portfolio is not doing him any favors this week.

On Monday, Buffett lost nearly $1 billion on his third-largest investment, IBM, after the company posted disappointing earnings.

On Tuesday, Coca-Cola did the same thing, posting third-quarter revenue that fell short of expectations and warning of currency headwinds.

Read MoreBuffett sells 'huge mistake'

Coke is Buffett's second-largest investment and has been one of the stalwarts of his portfolio for decades. (He left Coke's board in 2006 and his son Howard took a board seat there in 2010.)

With 400 million shares, Tuesday's decline of $2.72 cost the Oracle of Omaha $1.09 billion. Shares were on track for their worst day since October 2008. (With IBM's $7 decline on Tuesday, he was out another $494 million there, too).

"I love Coke. I love the management, I love the directors," Buffett said in a CNBC interview in April, while discussing the recent controversy over the company's executive pay plan.

The losses in IBM and Coke add to a recent rough patch for Buffett, who slashed Berkshire Hathaway's stake in British grocer Tesco earlier this month.

Read MoreBuffett on stocks: Look at them as businesses

He has described buying into the stock as a "huge mistake."

»Read more
  Monday, 20 Oct 2014 | 9:31 AM ET

Warren Buffett lost about $1 billion on this

Posted By: Ben Berkowitz

Warren Buffett does not like to lose money in general, so losing $1 billion before lunch on a Monday morning can not be going down well.

The plunge in IBM shares Monday after its weak earnings results cost the Oracle of Omaha dearly. The stock fell $13.06, and Buffett held about 70.2 million shares as of June 30, according to the most recent SEC filings.

That means the sharp decline cost him $916.5 million—a drop in the Berkshire Hathaway bucket, to be sure, but still noteworthy. (At IBM's lows of the day, he was down as much as $1.08 billion).

Read MoreIBM on earnings: We're disappointed

In April, after a prior weak earnings report, Buffett told CNBC he had not "soured" on IBM, that he had bought more stock this year and that he had not sold a share.

The stock was recently the third-largest holding in Buffett's portfolio, trailing only Wells Fargo and Coca-Cola.

IBM CEO Ginni Rometty dismissed talk of the tech company splitting up, despite its large size, Monday's earnings miss and the recent fad for tech companies to split in two.

Read MoreRometty: Clear path forward

"There is no doubt that marketplace speed has increased," she said in a CNBC interview. "We have a very clear strategy about how to take this company to the future."

»Read more
  Thursday, 16 Oct 2014 | 5:17 AM ET

Buffett sells off ‘huge mistake’ Tesco

Posted By: Catherine Boyle

Warren Buffett, the legendary investor and chairman and chief executive of Berkshire Hathaway, has cut the company's stake in U.K. supermarket Tesco.

»Read more
  Friday, 10 Oct 2014 | 8:00 AM ET

A chance to ride with Warren Buffett

Posted By: John Jannarone

Warren Buffett often makes investments that are out of reach for ordinary investors. But in the case of his recent car dealership deal, there's a rare chance to join him for the ride.

Last week, the Oracle of Omaha bought privately owned car dealership Van Tuyl Group for an undisclosed sum. The deal surprised some observers because annual domestic car sales have reached levels above 16 million—near a historical high.

The concern is that sales growth will be difficult to achieve and auto industry profits will stagnate. Indeed, shares of General Motors have fallen 24 percent so far this year while Ford has declined by 10 percent.

But Buffett recognizes that dealerships can thrive even without much growth in car sales. First, dealers can make just as much money selling extras like insurance and doing repair work. And given that the industry is very fragmented, it's reasonable to expect big players to scoop up smaller rivals through lucrative acquisitions over the next several years.

»Read more
  Friday, 3 Oct 2014 | 11:40 AM ET

Warren Buffett: I made a mistake on Tesco

Posted By: Abigail Stevenson

Warren Buffett said he was wrong when it came to investing in Tesco.

"With Tesco, we definitely made a mistake. I made a mistake on that one more than anybody else made a mistake ... That was a huge mistake by me," the billionaire told "Squawk Box" on Thursday.

The U.K. supermarket retailer has seen its shares fall more than 48 percent year to date. Buffett's investment firm Berkshire Hathaway is now nursing losses of more than $700 million. According to Berkshire's annual letter to shareholders, Buffett has 301,046,076 Tesco shares.

Read MoreBuffett loses big on Tesco share dive

»Read more
  Sunday, 5 Oct 2014 | 1:00 PM ET

Buffett on stocks: 'Look at them as a business'

Posted By: Katie Kramer

The man known as America's greatest investor isn't bothered by stock market volatility.

"I have no idea what the stock market's going to do tomorrow or next week or next month or next year," said Berkshire Hathaway Chairman and CEO Warren Buffett.

"If you own your stocks as an investment—just like you'd own an apartment, house or a farm—look at them as a business," Buffett advised. "If you're going to try to buy and sell them based on news or something your neighbor tells you, you're not going to do well. Find a good bunch of businesses and hold them."

Read MoreBuffett's Good, Bad & Ugly includes a big mistake

Buffett's Berkshire Hathaway owns 75 subsidiary companies, including some he's held for decades, such as See's Candies.

"You will not make money trying to sell stocks daily or weekly," Buffett said.

»Read more

About Buffett Watch

  • Warren Buffett is arguably America’s most-admired and most-followed investor. Buffett is the largest shareholder and CEO of Berkshire Hathaway and one of the world’s most famous and most generous philanthropists. Legions of investors - from all walks of life - follow Buffett's homespun investment philosophy: invest in what you know, invest in value. Here on CNBC.com's Warren Buffett Watch, we’ll keep you up to date on what the “Oracle of Omaha” is doing by following Buffett's trades, words and deeds.

 

  • Senior Coordinating Producer

  • Warren Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway