Tuesday, November 15, 2011

Warren Buffett: If the stock is cheap, we will buy it

Look at who has been buying in the middle of this turmoil?

Financial Time: Buffett reveals $10.7bn stake in IBM


"The company later disclosed five new investments made during the quarter. At the end of September Berkshire owned stakes valued between $195m and $232m in Intel, drug store chain CVS Caremark, broadcaster DirecTV, Visa, and defence group General Dynamics."

Financial Times: Berkshire spree targets industrial groups

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Berkshire Hathaway, the conglomerate run by Warren Buffett, went on an aggressive buying spree of stocks in the last quarter and shifted its portfolio’s focus from banks and consumer product companies to industrial businesses."

"We’re ready to buy lots of things,” Mr Buffett told Bloomberg Television six weeks ago. “If the stock is cheap, we will buy it."

Form 13F: Report for the Calendar Year or Quarter Ended: September 30, 2011 - Berkshire Hathaway Inc.

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5 comments:

sid said...

I think that U.S. is cheaper than Brazil. If I had more money, I would buy some U.S. shares.
By the way, now Buffett understands technological stuffs (IBM)?

cessna said...

On the opposite side, there's this guy:

[Infomoney: E boa estratégia ficar fora da bolsa, diz economista

Anonymous said...

Sid, we agree, US is cheaper than Brazil (we've discussed before the FCF yields comparisons).. a proposito, ja linkamos seu blog aqui (http://www.brazilianbubble.com/) no nosso blog roll! Abc!
Brazilian Bubble

cessna said...

FT: Buffett steps into the cloud with his bet on Big Blue

sid said...

Now it's clearer why Buffett bought it...
According to Google, IBM has a P/E < 15, ROE 65% and FCF of 6.4% (or 5.2% if discounted the whole investments).
Again, given the quality of the country and company, it's a nice bet. I just feel sorry for not having enough money to put some there...

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