Warren Buffett

**REWahoo** · 03-04-2006, 03:05 PM

Buffett: caution ahead
The Oracle of Omaha sees modest growth for stocks...

By Shaheen Pasha, CNNMoney.com staff writer
March 4, 2006: 9:44 AM EST

NEW YORK (CNNMoney.com) - In his annual letter to Berkshire Hathaway shareholders, released Saturday, billionaire investor Warren Buffett said he made few changes to the company's stock holdings but cautioned investors that the portfolio's returns may be modest over the next several years.

Buffett said while the company stands by its major holdings -- all "strong, highly-profitable businesses" -- current valuations aren't cheap. He said the group may double in value over the next 10 years with average annual per-share earnings gains of between 6 percent and 8 percent. Stock values, he said, will likely match that growth.

As for the overall stock market, Buffett braces investors for more modest returns to come, citing increased "frictional" costs that eat away at performance. These include costs related to trading, advice and money management.

http://money.cnn.com/2006/03/04/mark...ex.htm?cnn=yes

JPatrick · 03-04-2006, 03:10 PM

Quote:

Originally Posted by REWahoo!

Buffett: caution ahead
[b] increased "frictional" costs that eat away at performance. These include costs related to trading, advice and money management.[/i]

Trading, advice and money management.* hmmmmmmm, I'm thinking he could eliminate 2 of 3 if he spent more time on this forum

retire@40 · 03-04-2006, 03:23 PM

To use a meteorological analogy, he basically forecasted the financial weather to be partly sunny (or partly cloudy if you want to look at the glass half full).

What else would you want him to say? Expect double-digit growth for the next several years? Expect zero returns or negative returns in the next few years?

cute fuzzy bunny · 03-04-2006, 05:56 PM

Even better, if his investors GET zero, he can say "well, I said it wasnt going to be that great", and if they get double digits, he can say "well, its better than we expected...any complaints?"

Cool Dood · 03-04-2006, 06:02 PM

He should start a second career as an astrologer...

Oh, no, wait -- he can afford to retire, so I guess he shouldn't go back to work, but he could always do it as a hobby......

Eagle43 · 03-04-2006, 07:00 PM

We need a one-armed economist. "But on the other hand.."

Brat · 03-04-2006, 07:15 PM

Humm... my grandmother's crystal ball predicts pretty good this year, down turn for stocks next 2-4.

Anyone in the commercial trucking business? Graph out orders for new trucks next 3-4 years. Right now the industry is stocking up because of new requirements that will increase the price of vehicles more than a dime or two. Two years after those requirements are effective yet another set of standards are effective.

Nords · 03-04-2006, 08:08 PM

Here's Warren Buffett's 2005 letter to shareholders.

I like his explanation of the "Gotrocks" hiring "Helpers" on page 18.

Nah, I won't be going to the annual meeting. Too crowded. I'll wait for the photos.

cute fuzzy bunny · 03-04-2006, 09:31 PM

Eat at dairy queen, have some see's candy, check your geico statement online and look at some jordans furniture...just about as good.

03-04-2006, 03:05 PM	#1
REWahoo Administrator Join Date: Jun 2002 Location: Texas Hill Country Posts: 11,606	Warren Buffett Buffett: caution ahead The Oracle of Omaha sees modest growth for stocks... By Shaheen Pasha, CNNMoney.com staff writer March 4, 2006: 9:44 AM EST NEW YORK (CNNMoney.com) - In his annual letter to Berkshire Hathaway shareholders, released Saturday, billionaire investor Warren Buffett said he made few changes to the company's stock holdings but cautioned investors that the portfolio's returns may be modest over the next several years. Buffett said while the company stands by its major holdings -- all "strong, highly-profitable businesses" -- current valuations aren't cheap. He said the group may double in value over the next 10 years with average annual per-share earnings gains of between 6 percent and 8 percent. Stock values, he said, will likely match that growth. As for the overall stock market, Buffett braces investors for more modest returns to come, citing increased "frictional" costs that eat away at performance. These include costs related to trading, advice and money management. http://money.cnn.com/2006/03/04/mark...ex.htm?cnn=yes __________________ [Closed for renovation]

03-04-2006, 03:23 PM	#3
retire@40 Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,583	Re: Warren Buffet To use a meteorological analogy, he basically forecasted the financial weather to be partly sunny (or partly cloudy if you want to look at the glass half full). What else would you want him to say? Expect double-digit growth for the next several years? Expect zero returns or negative returns in the next few years? __________________ No man is free who is not master of himself. --- Epictetus Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo

03-04-2006, 05:56 PM	#4
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Re: Warren Buffet Even better, if his investors GET zero, he can say "well, I said it wasnt going to be that great", and if they get double digits, he can say "well, its better than we expected...any complaints?" __________________ Many an optimist has become rich by buying out a pessimist

03-04-2006, 06:02 PM	#5
Cool Dood Full time employment: Posting here. Join Date: Feb 2006 Posts: 784	Re: Warren Buffet He should start a second career as an astrologer... Oh, no, wait -- he can afford to retire, so I guess he shouldn't go back to work, but he could always do it as a hobby......

03-04-2006, 07:00 PM	#6
Eagle43 Thinks s/he gets paid by the post Join Date: Jan 2005 Posts: 1,653	Re: Warren Buffet We need a one-armed economist. "But on the other hand.." __________________ Resist much. Obey Little. . . . Ed Abbey Disclaimer: My Posts are for my amusement only.

03-04-2006, 07:15 PM	#7
Brat Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,834	Re: Warren Buffet Humm... my grandmother's crystal ball predicts pretty good this year, down turn for stocks next 2-4. Anyone in the commercial trucking business? Graph out orders for new trucks next 3-4 years. Right now the industry is stocking up because of new requirements that will increase the price of vehicles more than a dime or two. Two years after those requirements are effective yet another set of standards are effective. __________________ Duck bjorn.

03-04-2006, 08:08 PM	#8
Nords Moderator Emeritus Join Date: Feb 2004 Location: Oahu Posts: 15,734	Re: Warren Buffett Here's Warren Buffett's 2005 letter to shareholders. I like his explanation of the "Gotrocks" hiring "Helpers" on page 18. Nah, I won't be going to the annual meeting. Too crowded. I'll wait for the photos. __________________ * * For more info see "About Me" in my profile.

03-04-2006, 09:31 PM	#9
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	Re: Warren Buffett Eat at dairy queen, have some see's candy, check your geico statement online and look at some jordans furniture...just about as good. __________________ Many an optimist has become rich by buying out a pessimist

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