Editor’s Note: Related tickers: Berkshire Hathaway Inc. (NYSE:BRK.A), LinkedIn Corp (NYSE:LNKD), Microsoft Corporation (NASDAQ:MSFT), H.J. Heinz Company (NYSE:HNZ), American International Group, Inc. (NYSE:AIG), Citigroup Inc (NYSE:C), Royal Bank of Scotland Group plc (ADR) (NYSE:RBS)
Filthy rich businessman Warren Buffett, one of America’s wealthiest citizens (that’s filthy in a good way, of course) obviously has some strong ideas about what’s wrong with America, specifically our nation’s staggering national debt. Mr. Buffett told a cable television interviewer some time back that he could end the deficit in five minutes. Just pass a law, he explained, that says that “any time there is a deficit of more than 3 percent of gross domestic product, all sitting members of Congress are ineligible for re-election.”
3 Things Bill Gates Has Learned From Warren Buffett (WallStCheatSheet)
Bill Gates proves that no matter how rich or successful you are, there’s always room for more learning and improvement. In a light, insightful post written on his LinkedIn Corp (NYSE:LNKD)‘s profile, Gates offers the three things he believes to have learned from Warren Buffet over the years. He speaks endearingly about Buffet — with whom he’s on a first-name basis, a privilege we’ve arguably not yet been afforded — with a relaxed and playful tone that allows his humility to shine through. …The first thing Gates outlines has to do, unsurprisingly, with investing. But interestingly enough, Microsoft Corporation (NASDAQ:MSFT)‘s former CEO contends that what he learned first and foremost from Buffet is that, it’s not just about investing.
Warren Watch: A ‘long run’ for Buffett assistant? (Omaha)
Even the Wall Street Journal’s recent profile of Tracy Britt, Warren Buffett’s financial assistant, doesn’t answer the question many people would ask if they got the chance: Will she be Berkshire Hathaway Inc. (NYSE:BRK.A)’s next CEO? Britt’s duties include researching potential acquisitions and serving as nonexecutive chairwoman of four Berkshire subsidiaries: Benjamin Moore, Johns Manville, Larson-Juhl and Oriental Trading. The Journal’s reporting indicated that she has an office next to Buffett’s, accompanies him to meetings and was dispatched to Brazil to find out more about 3G Capital after Berkshire Hathaway Inc. (NYSE:BRK.A) and 3G agreed to buy H.J. Heinz Company (NYSE:HNZ).
Rising Interest Rates to Test Berkshire Outperformance, Buffett Legacy (TheStreet)
Some of the most followed Wall Street commentators fear an era of rising interest rates will dent the legacy of this generation’s best investors. For Warren Buffett, however, rising interest rates could trump fears he has expressed that Berkshire Hathaway Inc. (NYSE:BRK.A) will underperform rising markets in coming years. When Berkshire Hathaway Inc. (NYSE:BRK.A) commenced its May 4 annual shareholder meeting, Buffett had a lot to celebrate given the conglomerate’s rise to new record share price highs and a strong first quarter earnings report due to growth from the firm’s operating subsidiaries.
Berkshire forms unit for excess and surplus market insurance (IVCPost)
Berkshire Hathaway Inc. (NYSE:BRK.A), through a press release last Thursday, announced the formation of Berkshire Hathaway Specialty Insurance. This is the recently created commercial property casualty insurance group is now operating to underwrite property, casualty and other executive liability insurance. According to Berkshire CEO Warren Buffett. “It’s official: We are moving into commercial insurance in a substantial way, and we are here to stay. With our proven underwriting discipline and financial strength, along with a stellar management team, Berkshire Hathaway Inc. (NYSE:BRK.A) Specialty Insurance is a welcome solution for customers seeking large-scale property and casualty capacity for the long term.”
Warren Buffett Embraces an Old Love (DailyFinance)
It didn’t take long after Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) welcomed four former American International Group, Inc. (NYSE:AIG) executives into the fold that it introduced a new, specialty insurance arm to the world. Based in Boston, Mass., the new entity will sell commercial insurance products encompassing property & casualty, as well as professional liability insurance. The public got some insight into Buffett’s plan when the American International Group, Inc. (NYSE:AIG) crew came on board, but the Oracle had been planning this move for some time, telling Bloomberg right before Berkshire Hathaway Inc. (NYSE:BRK.A)’s annual meeting, “We would like to get into the commercial-insurance business very big time.”
Warren Buffett — Winnipeg-style (WinnipegFreePress)
Tim Burt was preaching to the choir at a recent luncheon where he was the guest speaker. Like him, most of the attendees were investment analysts. So they were well-versed in Burt’s topic, the basics of value investing — an investment philosophy made famous by Warren Buffett. Considered one of the world’s most successful investors, with the vast wealth to back it up, Buffett earned his nickname the Oracle of Omaha because of his ability to buy undervalued companies that eventually become highly valued ones.
Buffett’s MidAmerican Planning $700 Million Solar Bond Sale (MoneyNews)
Warren Buffett’s MidAmerican Energy Holdings Co. may complete a $700 million bond offering this month to finance its $2.74 billion Antelope Valley solar farm in Southern California. The company plans to issue Series A senior secured notes due in 2035, Elizabeth Fogerty, a Fitch Ratings spokeswoman, said by e-mail. Barclays Plc, Citigroup Inc (NYSE:C) and Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) are leading the offering, according to data compiled by Bloomberg.
Warren Buffett’s Mentor Was A Crappy Hedge Fund Manager (BusinessInsider)
Jack Bogle, the outspoken godfather of index funds and passive investing strategies, didn’t approve of a recent Wall Street Journal article defending hedge funds. In particular, he took issue with the author’s reference to Benjamin Graham, the legendary Columbia finance professor who literally wrote the book on Security Analysis and mentored Warren Buffett. …Citing Benjamin Graham as the first “hedged fund” operator is an especially unfortunate example. “The trick,” Mr. Rice writes, was Graham’s “clever way to make money . . . whether it [the market] continued to rise, or started to fall.”
