Three Pillar of Berkshire’s Intrinsic Value – What do we Learn?

I am not a hardcore follower of Buffett’s investing philosophy. It is not because I do not agree with Buffett’s/Graham’s investing philosophy, but primarily because, my situation is different. The environment which influences my investing decisions is quite different than in which Buffett makes his decisions. Having said that, I like to understand his thought process to see if there is anything that I can use. I may not be able to use them on ‘as is’ basis, but at least the notion behind them can be applied. For example, I like Buffett’s practice of asking its holding companies to share a significant portion of earnings in the form of dividends. He believes he is in a better position to use this capital than company management.

Buffett’s letter to shareholders is released as a part of Berkshire Hathaway’s (BRK) annual reports. In almost all cases, I completely ignore CEOs/MDs letters in annual report. They are pure garbage in a sense they do not tell you anything. That is not a case with Buffett’s letters. Each and every year, his letters provide an insight in his thought process. This year was no different. Continue reading rest of this article…

TIPBlog Portfolio Update: 2010 Year End

The Year 2010 can be summarized as continued optimism, scams, change of guard at IPL, food rotting in warehouses, revolutions in middle-east, deflection from fragile European economy, etc. As an individual investor, should I care about macro economics? or Should I care what a bollywood celebrity’s dog does? They are all interesting stories, beyond which it has no value. This post summarizes TIPBlog portfolio update and measures progress. Earlier updates are listed under progress updates.

The 2010 year end status update is as follows: Continue reading rest of this article…