Locked and Loaded: Warren Buffett’s Elephant Gun.

Apparently Warren Buffett’s Berkshire Hathaway Inc. is sitting on a record pile of cash; USD$72.7B as at June 30, 2016. This record-breaking kitty has everyone in the investment world guessing where (in addition to when and if) Warren will go “hunting”. Will the “Oracle of Omaha” look to scoop up another major industrial player like he most recently did with Precision Castparts Corp., or seek to expand his insurance operations like he did with the much smaller purchase of Medical Liability Mutual Insurance Company.

http://www.bloomberg.com/news/articles/2016-08-08/buffett-cash-pile-climbs-to-72-7-billion-setting-record-chart

http://www.bloomberg.com/gadfly/articles/2016-08-08/buffett-s-berkshire-hathaway-transforms-again

 

 

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When It May Be Time To Cash In Your Chips.

An interesting bit of news concerning railroad operator Canadian Pacific Railway Ltd. and Pershing Square Capital Management LP:

http://www.bloomberg.com/news/articles/2016-08-03/ackman-s-pershing-square-sells-position-in-canadian-pacific

 

Apparently All That Glitters Is Gold!

http://www.bloomberg.com/news/articles/2016-07-31/gold-s-50-billion-m-a-spree-builds-as-price-gains-boost-values

 

 

My Year-End Scorecard

As I consider myself to be a long-term investor, I take short-term disappointment in stride…not a few months does a successful investment make. Having said that, periodic performance reviews should be undertaken to ensure the ‘story’ that lead you to invest in the business in the first place has not materially changed (i.e. obsolescence, regime change etc.) and the businesses are still attractive for the long haul.  Continue reading