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03-04-2006, 02:05 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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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
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Numbers is hard
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03-04-2006, 02:10 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Re: Warren Buffet
 Quote:
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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]
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Trading, advice and money management.* hmmmmmmm, I'm thinking he could eliminate 2 of 3 if he spent more time on this forum 
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03-04-2006, 02:23 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Posts: 2,670
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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?
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No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
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03-04-2006, 04:56 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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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?"
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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03-04-2006, 05:02 PM
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#5
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 784
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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......
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03-04-2006, 06:00 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jan 2005
Location: DFW
Posts: 2,016
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Re: Warren Buffet
We need a one-armed economist. "But on the other hand.."
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Resist much. Obey Little. . . . Ed Abbey
Disclaimer: My Posts are for my amusement only.
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03-04-2006, 06:15 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,113
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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.
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Duck bjorn.
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03-04-2006, 07:08 PM
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#8
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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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.
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03-04-2006, 08:31 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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