Comments on: Let a Billionaire Manage Your Finances for Free http://tynan.com/let-a-billionaire-manage-your-finances-for-free Life Outside The Box Thu, 09 Feb 2012 05:16:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Why I Sold My Berkshire Hathaway Stock | Life Outside The Box | Tynanhttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-239777 Why I Sold My Berkshire Hathaway Stock | Life Outside The Box | Tynan Thu, 20 Jan 2011 15:43:20 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-239777 [...] subscribe to my RSS.I logged into my stock account the other day and realized that contrary to my previous claim/strategy of investing solely in Warren Buffet’s Berkshire Hathaway, I had no Berkshire shares left. Time for an update, I reckon.So what happened? Nothing against [...] [...] subscribe to my RSS.I logged into my stock account the other day and realized that contrary to my previous claim/strategy of investing solely in Warren Buffet’s Berkshire Hathaway, I had no Berkshire shares left. Time for an update, I reckon.So what happened? Nothing against [...]

]]> By: Not So Materialistic » Tynan is… Better Than Your Boyfriendhttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-25641 Not So Materialistic » Tynan is… Better Than Your Boyfriend Fri, 23 Feb 2007 19:43:15 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-25641 [...] My new philosophy is that I want to have as few possessions as possible, but to have them be as high quality as possible. Getting there is basically just a process of selling off my extra stuff. I want to be as portable as possible without sacrificing functionality. I used to have over 20 computers working. Now I have one, and it’s a laptop. I even want to get rid of my clothes. I want two pairs of jeans, 7 identical t-shirts, some outerwear, my hats, and a pair of shoes. I can’t even tell you how many shoes I have. I’m not at girl level or anything, but I have at least two pairs of Ferragamo shoes I haven’t worn in a year. I’ve spent thousands of dollars on these clothes. Now I wish I just bought some black t-shirts and saved the money. That could have been a couple extra shares of Berkshire Hathaway. [...] [...] My new philosophy is that I want to have as few possessions as possible, but to have them be as high quality as possible. Getting there is basically just a process of selling off my extra stuff. I want to be as portable as possible without sacrificing functionality. I used to have over 20 computers working. Now I have one, and it’s a laptop. I even want to get rid of my clothes. I want two pairs of jeans, 7 identical t-shirts, some outerwear, my hats, and a pair of shoes. I can’t even tell you how many shoes I have. I’m not at girl level or anything, but I have at least two pairs of Ferragamo shoes I haven’t worn in a year. I’ve spent thousands of dollars on these clothes. Now I wish I just bought some black t-shirts and saved the money. That could have been a couple extra shares of Berkshire Hathaway. [...]

]]> By: mhinze.com » Blog Archive » links for 2007-02-06http://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-21659 mhinze.com » Blog Archive » links for 2007-02-06 Mon, 19 Feb 2007 14:02:57 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-21659 [...] I let Warren Buffet manage my money (tags: finance stocks) [...] [...] I let Warren Buffet manage my money (tags: finance stocks) [...]

]]> By: Natehttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-17783 Nate Fri, 09 Feb 2007 05:55:02 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-17783 Cautions: in the year 2000 after huge gains in the previous 17 years of the entire stock market, Warren Buffet was asked to predict what he expected stock market returns to be over the next 17 years. His answer was 4% Between the years 2000 and 2005 the total return on Berkshire Hathaway was 0, that's right , zero. More than half of Berkshire hathaway is in 2 insurance companies, GEICO (the gecko auto insurance company) and General RE, a reinsurance company. I like Berkshire Hathaway very much. His business purchases are based on cash flow of the business. His annual reports in the past have given his 4 principles for buying a business (or a stock): 1. honest competent management 2. Long term favorable prospects (buying brands with pricing power) 3. Understandable businesses(cash flow, no technology that can go out of date) 4. He only buys at a good price based on cash flow.The financial company he became a director for was Salomon Brothers, and he owned most of the company. He joined the board after the company illegally tried to gain a monopoly on Treasury bonds sales and almost wrecked the world's economy. Cautions: in the year 2000 after huge gains in the previous 17 years of the entire stock market, Warren Buffet was asked to predict what he expected stock market returns to be over the next 17 years. His answer was 4%
Between the years 2000 and 2005 the total return on Berkshire Hathaway was 0, that’s right , zero.
More than half of Berkshire hathaway is in 2 insurance companies, GEICO (the gecko auto insurance company) and General RE, a reinsurance company.
I like Berkshire Hathaway very much. His business purchases are based on cash flow of the business. His annual reports in the past have given his 4 principles for buying a business (or a stock):
1. honest competent management
2. Long term favorable prospects (buying brands with pricing power)
3. Understandable businesses(cash flow, no technology that can go out of date)
4. He only buys at a good price based on cash flow.

The financial company he became a director for was Salomon Brothers, and he owned most of the company. He joined the board after the company illegally tried to gain a monopoly on Treasury bonds sales and almost wrecked the world’s economy.

]]> By: stevehttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-17245 steve Mon, 05 Feb 2007 18:06:24 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-17245 That is an excellent idea! I think I might purchase a share and attend.Personally, I also sleep well with my money invested in Vanguard index funds. The great majority of managed funds can't beat the market... if you can't beat it, why not be it? =) That is an excellent idea! I think I might purchase a share and attend.

Personally, I also sleep well with my money invested in Vanguard index funds. The great majority of managed funds can’t beat the market… if you can’t beat it, why not be it? =)

]]> By: Administratorhttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-7635 Administrator Sun, 07 Jan 2007 00:31:00 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-7635 My only argument is that Warren Buffet probably knows best, and all of his money is in Berkshire. Past performance is an indicator of future performance, just not the only indicator. It's like saying that Tiger Woods might become a bad golfer. It's possible, but doubtful because of his past performance. Same with WB.As for margin, it's not that complicated. It's a secured loan with 10% interest. At any given time I have a fraction of a share on margin (averaging 50% of a share, of course). Because Berkshire has such huge cash reserves, it would be virtually impossible for the stock price to hit 50% and thus trigger a margin call.I will checkout those two firms you mentioned, but for now I'm happy with Berkshire.Tynan My only argument is that Warren Buffet probably knows best, and all of his money is in Berkshire. Past performance is an indicator of future performance, just not the only indicator. It’s like saying that Tiger Woods might become a bad golfer. It’s possible, but doubtful because of his past performance. Same with WB.

As for margin, it’s not that complicated. It’s a secured loan with 10% interest. At any given time I have a fraction of a share on margin (averaging 50% of a share, of course). Because Berkshire has such huge cash reserves, it would be virtually impossible for the stock price to hit 50% and thus trigger a margin call.

I will checkout those two firms you mentioned, but for now I’m happy with Berkshire.

Tynan

]]> By: The Reel Dealhttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-7603 The Reel Deal Sat, 06 Jan 2007 16:26:04 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-7603 FOOLISH advice and terrible investment philosophy. This is novice at best and I would say 'safe' except for the use of margin.Past results are not an indicator of future returns. Don't use margin unless you are an experienced investor and have educated yourself. As a former investment banker and trader (I've traded and learned from some of the best traders-including for BERK-on the floors of the CBOE and NYSE), I urge you to thoroughly educate yourself first before taking investment advice from this blog.If you like WB Value investment philosophy look into diversifying in other quality value investment management firms. I personally love 'Value' and it offers the most value to me and my lifestyle. There aren't too many great ones (that aren't already closed to new investors), but two excellent firms off the top of my head are Century Management Parners (ironically Austin based) and Brandes Investment Partners out of La Jolla, CA. Both are impecable with superior returns. I've met both of the firms personally and they have similar Value investing philosophies to WB (Brandes is known for international holdings-Read Charles Brandes' book). By my professional definition, "Value" mean the holdings should be 30-50% below book value when purchased by the portfolio manager.Ty, stick to just being awesome. Cheers mate. FOOLISH advice and terrible investment philosophy. This is novice at best and I would say ‘safe’ except for the use of margin.

Past results are not an indicator of future returns. Don’t use margin unless you are an experienced investor and have educated yourself. As a former investment banker and trader (I’ve traded and learned from some of the best traders-including for BERK-on the floors of the CBOE and NYSE), I urge you to thoroughly educate yourself first before taking investment advice from this blog.

If you like WB Value investment philosophy look into diversifying in other quality value investment management firms. I personally love ‘Value’ and it offers the most value to me and my lifestyle. There aren’t too many great ones (that aren’t already closed to new investors), but two excellent firms off the top of my head are Century Management Parners (ironically Austin based) and Brandes Investment Partners out of La Jolla, CA. Both are impecable with superior returns. I’ve met both of the firms personally and they have similar Value investing philosophies to WB (Brandes is known for international holdings-Read Charles Brandes’ book). By my professional definition, “Value” mean the holdings should be 30-50% below book value when purchased by the portfolio manager.

Ty, stick to just being awesome. Cheers mate.

]]> By: segfaulthttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-7418 segfault Fri, 05 Jan 2007 20:07:00 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-7418 A couple of things - I own a single share of BRK-B. My motivation for buying it was to one day take advantage of the shareholder privilege to attend the annual meeting in Omaha. Unfortunately, that has conflicted with my final exams for the past several years. However, I should be done with school in 2008, and might attend then. I have seen Buffett speak and highly recommend it if you ever have the opportunity.I know that BRK owns a lot of different companies (and a large horde of cash, which is kind of like owning bonds), but personally, I sleep better at night having the bulk of my long-term investments in low-cost mutual funds from Fidelity and Vanguard. A couple of things – I own a single share of BRK-B. My motivation for buying it was to one day take advantage of the shareholder privilege to attend the annual meeting in Omaha. Unfortunately, that has conflicted with my final exams for the past several years. However, I should be done with school in 2008, and might attend then. I have seen Buffett speak and highly recommend it if you ever have the opportunity.

I know that BRK owns a lot of different companies (and a large horde of cash, which is kind of like owning bonds), but personally, I sleep better at night having the bulk of my long-term investments in low-cost mutual funds from Fidelity and Vanguard.

]]> By: DeuceDeucehttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-7322 DeuceDeuce Thu, 04 Jan 2007 16:46:45 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-7322 You put it plain and simple, thanks for the tip. B shares are going for about 6 g's right about now. When I get my weight up, Im in. You put it plain and simple, thanks for the tip. B shares are going for about 6 g’s right about now. When I get my weight up, Im in.

]]> By: Administratorhttp://tynan.com/let-a-billionaire-manage-your-finances-for-free/comment-page-1#comment-7171 Administrator Tue, 02 Jan 2007 22:56:24 +0000 http://www.tynan.com/let-a-billionaire-manage-your-finances-for-free.htm#comment-7171 A few things - At most I have one share on margin, at as I build up cash in the account I have just a tiny bit on margin.He has pledged 5% of his shares yearly to Bill Gates' foundation.It's not a perfect investment, but it's as close as possible.Tynan A few things – At most I have one share on margin, at as I build up cash in the account I have just a tiny bit on margin.

He has pledged 5% of his shares yearly to Bill Gates’ foundation.

It’s not a perfect investment, but it’s as close as possible.

Tynan

]]>