August 13, 2007 by Joe Ponzio

Take one of my old spreadsheets (found elsewhere on this site), plug in BNI’s past performance, and you’ll get a per share value of $60.15. Mike and I both did it, and we were both perplexed. Did Buffett pay upwards of a 30% premium for BNI? Let’s pick it apart.

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August 9, 2007 by Joe Ponzio

I just wanted to quickly post that I am going on vacation today (August 9, 2007) and will be back on Monday. If I get a chance, I’ll try to get something online for Friday…but no guarantees (or should I say, weather permitting). And no, I won’t be watching my…

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August 8, 2007 by Joe Ponzio

Berkshire Hathaway bought another 1.62 million shares of Burlington Northern Santa Fe (BNI) in the past few days, according to a recent filing with the Securities and Exchange Commission. If you recall, Buffett’s company disclosed in April that it had bought 39.03 million shares of BNI, sending the stock some…

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August 7, 2007 by Joe Ponzio

If your business doesn’t have a moat, it is unpredictable at best. Can money be made in no-moat businesses? Absolutely-but it is a gamble at best. Ben Graham, Warren Buffett’s mentor and friend, stated: An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory…

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August 6, 2007 by Joe Ponzio

When a business changes your language, it likely has a good moat. Still, plenty of businesses have huge moats-and it is just a matter of understanding and uncovering them. Why do you need a moat? As Buffett says, to protect you from the guy who is going to come along…

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August 3, 2007 by Joe Ponzio

Moat-one of the most important concepts in value investing. Every company has a value; but, the companies with big moats are generally less sensitive to outside forces which means you can invest with more confidence and comfort. There are a million different types of moats. Some are economic; some are…

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August 2, 2007 by Joe Ponzio

Yesterday, a visitor brought up a couple of points regarding the analysis of Johnson & Johnson. It looks as though growth might be slowing based on the 2001-2006 owner earnings growth rate and he brought up a good point-is it a cause for concern?

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August 1, 2007 by Joe Ponzio

Hope. It can kill a portfolio. The more rational, cold, and calculated you are in your investing, the more confidence you can have in your portfolio. Each emotion you introduce only digs you further into the hole. You can hold a company because you love their products; but, you better…

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July 31, 2007 by Joe Ponzio

In his 1996 Letter To Shareholders of Berkshire Hathaway, Warren Buffett offered investors some pretty rational advice. I’ll take you through it, but let’s paraphrase his first words of caution: If you aren’t going to own individual stocks, buy index funds-not Wall Street’s mutual funds. Considering that most of Wall…

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July 30, 2007 by Joe Ponzio

I don’t like to write about the stock market. Why? It’s simple-whatever I write on Sunday night may very well be outdated by Monday’s lunch. It is much easier, safer, and more comfortable to buy stocks in wonderful businesses and ignore the stock market than it is to trade stocks,…

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