Investing Like Warren Buffett

Last updated: January 27, 2008

 

I am a huge fan of Warren Buffett and this web page is created to share Warren Buffett's lastest news, transactions (buys and sells), as well as what I have learned about him on the internet as well as books and newspapers. It is a no frills web page, because I update it everyday and hence it will be easier to keep it simple.

Official transaction history filed with the U.S. Securities and Exchange Commission (SEC) - Click here (there is typically a 5 day delay between his real time buys and the posting of the transactions on the SEC page)

Jan 27, 2008

My Commentary

Warren Buffett has been very active in the stock market these days. This is a really good sign that the market is close to the bottom but as we all know, it is impossible to tell when is bottom with Mr. Market. With Buffett's experience and expertise, I think we're pretty close. He once admitted he is usually early to buy when there is a distressed market, and it is common for the stock price to go down for sometime after he buys into it.

On a general note, he's been actively buying up shares of Burlington Northern Santa Fe Corp. (BNI) almost every time it dips, he buys.

Warren Buffett has been most recently buying:

 

Personal opinions

BNI,

As stated in his filings with the SEC, Buffett wants to own about 25% of Burlington Northern Santa Fe (BNI), so he's not going to stop buying until that percentage is reached. As of today, he's at 18.2%. I think his interest in BNI is obvious, gas is getting pricey making trucking and other gas-driven logistics more expensive. Fuel efficient rail transportation is going to take over the industry big time. Especially with the new locomotive technologies that use regenerative breaking, etc...

Why BNI? and not the other US rails - UNP, probably because BNI's business is more focused on moving commodities such as coal and such. And also I believe based on primitive PEG valuation models, BNI is cheaper than UNP.

Swiss Re,

He's going to learn from them, take away customers, and maybe swallow the company whole one day. Swiss Re's stock price got hammered recently from it's mortgage backed investments. It's definitely a value buy!

KMX,

Recessionary concerns are looming strong over the World, and what does better than to buy a company that has solid management and sells used cars! Also, I expect Carmax to profit handsomely by the people who have bought brand new cars over the last 3-5 years and find they cannot afford to make the payments anymore, and opt to sell it a fire sale prices to Carmax.

I currently have been buying BNI along with Buffett, and yes I also hold a very small position with KMX as well. My solution to coat tailing Buffett is to buy his BRK-B shares on every dip, it's really safe and steady.

- more updates to come, happy reading!

 

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