The BBC wants you

The BBC are working on a documentary on the Sage of Omaha, Warren Buffett. Associate Producer Charlotte Dawes is looking for shareholders of Berkshire Hathaway (although I don't expect many from New Zealand) who are willing to share their thoughts or stories about the man and his investment style.

I have been asked to participate as to why I follow his unique way of investing but Charlotte is principally looking for Poms to be included, because it is the BBC and they will be following some Brits to the Berkshire Stockholders meeting coming up in May.

If you are interested in participating please email Darren Rickard here .

I would be chuffed to get some readers to contribute their thoughts opinions and ideas, especially if you are a shareholder.

Related Links

2008 Warren Buffett Letter to Shareholders
Everything Warren Buffett

Recent Share Investor Reading

• Tortoise VS Hare: Tortoise wins again
• The NZX continues to lose ground with retail investos
• 2008-2009 KFC sales figures mislead investors
• Sweetheart deal for Fletcher Building's friends make small investors sick
  
• What 11 years of Stockmarket investing has taught me
  

Recommended Amazon Reading


The Four Filters Invention of Warren Buffett and Charlie Munger by Bud Labitan
Buy new: $29.65 / Used from: $26.48
Usually ships in 24 hours

Kindle 2: Amazon's New Wireless Reading Device (Latest Generation)

c Share Investor 2009

Fruit cake Andrew Williams must go

"The 'dog's breakfast' as you describe us will develop a co-operative plan for our region. I would recommend that you work with us and not be the lone sheep."

Andrew Williams text to John Banks, 10.28pm last Thursday

Andrew Williams said that the Local Government Minister Rodney Hide misled Prime Minister John Key about his consultation with Auckland mayors. Last week in a TV news report.

Fruit cake mayor Andrew Williams paranoid rantings continue, this time over his impending unemployment  due to supercity elections late in 2110.

He has started a stoush with John Banks, Mayor of Auckland City which has lead to a mistaken text sent to him instead of its original recipient Aaron Bhatnagar:

"I leave this to Whaleoil. TV3 are running this lunitic (sic) tonight?"

John Banks mistaken text to Andrew Williams, 5.57pm Saturday.

Whaleoil wants Williams removed from office and is smearing him as much as it can to bring this to a head. I had no idea part of Whaleoil's motivation was because it is run by Cameron Slater - son of Citizens & Ratepayers president John Slater, and a friend of Mr Banks.

Nevertheless, Andrew Williams is out of control, has abused his political foes and ratepayers of the North Shore City so he deserves a good grilling over an open public flame.

Williams recent behavior has seen him send off abusive emails to his constituents, fight with basketball players, drunken abuse at political functions and a number of other bizarre incidents where his mouth has written checks his brain couldn't cash.

Williams was elected by a small minority of Shore residents (and sadly me) and his popularity has plummeted since then, becoming now one of the North Shores most unpopular mayors in the areas history.

I fear the representation of the North Shore by a drunken, abusive, paranoid individual with clear mental heath problems is not doing this region any good at all.

Time to fall on your sword Andy.

c Political Animal 2009

Kindle 2: Amazon's New Wireless Reading Device (Latest Generation)

Tortoise VS Hare: Tortoise wins again

Long VS short, there just aint no contest!

Yeah, I know, I know, he is going to bang on again about the merits of long term investing over short term.

Absolutely, it is a good subject and important if you want to make money well into the future. Invest in a good business, it will have its highs and lows performance wise regardless of its share price and the odds are better than a short term punt that you will be happier in the end.

I am motivated to write this column because of my sustained interest in Warren Buffett and his investment style; buy a great company for a good price and never sell it.

Recent developments for Buffett have seen his Berkshire Hathaway company lose money, lose share price and Berkshire losing its high credit rating a few days ago.

That has seen his critics lather at the mouth to come out and critique his recent moves to buy stocks and spend money rather than do the opposite I presume.

One virulent critic has been Doug Kass and he has been shorting Berkshire stock over the last year.

But surprize, surprize being the short term thinker he his today he came out and did a complete 180 degree flip flop, Doug is buying Berkshire stock for his long term draw!

This from Doug:

"When conditions change, as they appear to be doing now -- see this morning's Wells Fargo (WFC Quote) news -- opinions must change, and opportunities must be embraced. This is especially true in the case of Berkshire Hathaway as the considerations that led to my shorting of Berkshire Hathaway's shares at around $145,000 a share have now reversed, and, with the shares today trading under $90,000 a share, I have begun to accumulate a long position in Berkshire Hathaway".

Doug could have bought Berkshire at $74,100 in November and again in February 2009 at $73,677.30.

But if you looked at Buffett's move when "his" Wells Fargo bought the basket case Wachovia last year, as a long term investment, you might have had the fortitude to buy Berkshire stock thinking Well's management might know what they were actually doing.

Kass even advocated buying Wells Fargo last November, but not Berkshire Hathaway stock, which owned around a 7% stake in the company according to filings last December. Wells is now one of Americas largest banks.

Berkshire has been the owner or part-owner of many global brands and added more recently.

Kass could have had a stake in all of these cheaply for a long term recovery but only picked one.

The purchase of debt or stock in Harley Davidson, Tiffany, Goldman Sachs, General Electric and a number of other smaller and some larger purchases over the last 12 months also look to pay off as the economy inevitably recovers in the long term.

Oh how the tortoise has taught the hare a lesson, and more to come I would think.

Thanks for your indulgence of my self-indulgence once again.

Recent Share Investor Reading

• The NZX continues to lose ground with retail investors
• 2008-2009 KFC sales figures mislead investors
• Sweetheart deal for Fletcher Building's friends make small investors sick
  
• What 11 years of Stockmarket investing has taught me
• Emotional Refuse

• Discuss this topic @ Shareinvestor.net.nz

Related Amazon Reading


The Four Filters Invention of Warren Buffett and Charlie Munger by Bud Labitan
Buy new: $29.65 / Used from: $26.48
Usually ships in 24 hours


c Share Investor 2009

Sir Roger Douglas Parliamentary Speech

There was another speech given yesterday in parliament by the great former Finance Minister Sir Roger Douglas. It was much more interesting, well read, containing actual facts rather than the fantasies in the selfish rant of the former Prime Minister Helen "no regrets" Clark.

I will post that speech here in its entirety when it becomes available but will add a small summary of it taken from the ACT website.

It is about the amount of money stolen by the Labour Government from hard working New Zealander over the last 9 years .

These are facts:

Posted on 08 Apr 2009

ACT New Zealand Finance Spokesman Sir Roger Douglas today released information showing that New Zealanders have spent more than a decade being robbed blind through over-taxation.

"These figures demonstrate that the spending binge of the past 13 years is today costing every man, woman and child $7,567.63 - or more than $30,000 from every family each year in taxation" said Sir Roger.

That is in direct contrast to the 13 years preceding 1996 - the period of reform - during which time the burden of Government spending increased by only $300 per person. From 1984 - 1996 we had economic growth. Now we have economic stagnation. It doesn't take a genius to figure it out: Government spending stifles innovation and growth.

"Given the current economic climate, this robbery must stop. What have families got for their $30,000? How has the Families Commission helped? Or introducing tax breaks for the racing industry? Has the massive expansion in Government really been worth it?

"Had that money been left with families, most would now be mortgage free, educated two children at an Independent School, or provided the entire family with private health insurance while allowing them four family holidays to Australia.

"But the reality is much worse. Wasteful Government spending has significantly decreased our economic growth. Taking into account the lack of growth, the figures are disgraceful: average salaries are $15,000 lower than if we had left the cash in the wallet of those who earned it.

"If we factor in this loss of income, and add it to the increase in Government spending, then the average family is $60,000 worse off every year. It's time to get real and drastically cut wasteful Government spending - and we need to do it now," said Sir Roger.

Related Amazon Reading

The World's Best Tax Havens: How to Cut Your Taxes to Zero and Safeguard Your Financial Freedom by Lee Hadnum
Buy new: $42.25 / Used from: $55.52
Usually ships in 24 hours

c Political Animal 2009