Tag: Berkshire Hathaway (NYSE:BRK-B)

Top Approaching in Berkshire Hathaway?

Posted on by The INO.com Team

By: Elliott Wave International

Editor's note: The following article originally appeared in a special September-October double issue of Robert Prechter's Elliott Wave Theorist, one of the longest-running financial letters in the business. From Sept. 25 to Oct. 1, Prechter's firm, Elliott Wave International, is throwing open the doors to all of its investor services 100% free. Click here to join EWI's free Investor Open House now.

It piques our interest when a person or company makes the front page of a magazine or newspaper. On August 15, USA Today ran an article with a chart on the share-price performance of Warren Buffett's company, Berkshire Hathaway. The Guardian and other papers covered the news, too, which was that the stock had cleared $200,000/share.

The stock (symbol BRK-A) has returned a 19.7% compounded annual return to shareholders since 1965, the year Buffett turned a failing textile company into an investment company. It has returned 22.8% annualized since 1977. Let's just say that the stock has produced about 20% per year compounded.

The above figure shows that the stock has just met a 16-year resistance line on arithmetic scale. The next figure shows that it is still a bit shy of that line on log scale. Continue reading "Top Approaching in Berkshire Hathaway?" →

Successful Investors Read, And Read A Lot

Posted on by The INO.com Team

By: Tim Melvin

Warren Buffett and Charlie Munger have commented many times in the past about the need to read widely and often to achieve investment success. "I have said that in my whole life, I have known no wise person over a broad subject matter area who didn't read all the time -- none, zero," Munger commented at the 2003 Berkshire Hathaway (NYSE: BRK-B) annual meeting.

"Now I know all kinds of shrewd people who by staying within a narrow area can do very well without reading," he added, "but investment is a broad area. So if you think you're going to be good at it and not read all the time, you have a different idea than I do. . . . You'd be amazed at how much Warren reads. You'd be amazed at how much I read."

When Warren was asked by an interviewer how he achieved success he held up a sheaf of papers and commented, "Read 500 pages like this every day. That's how knowledge builds up, like compound interest." This is an underappreciated talent in today's investing world. We flock to seminars and meetings to learn how to pick stocks and analyze markets using charts and pictures, without developing the knowledge of what is driving the price moves.

Get Your Nose In A Book

Continue reading "Successful Investors Read, And Read A Lot" →