Top Five Warren Buffett Videos

1. How did Warren Buffett made his money?Warren Buffett and Jay-Z interview with Steve Forbes: Video
2. Warren Buffett, The World Greatest Money Maker: Video
3. Warren Buffett on Investment Stratey: Video
4. Secrets of Warren Buffett: Video
5. The Best Classroom Lesson from Warren Buffett: Video

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Buffett's Investment Model is the Key

Warren Buffett has made the business of investment a real simple one. He does this with an investment model that serves him well, both as an investor and a businessman by focusing on;

• his circle of competence
• capital allocation
• not paying a dividend (preventing corporate leaking)
• the strength of company's economic castle and moat
• copycat any investment practice that is worthy
• avoid the commission of investment mistakes

Warren Buffett on investment model: (video)

Buffett buys a business outright or a piece of the business and he gives it to someone else to do the heavy-lifting and remit the profit to him for future deployment.

His value investing foundation marks the principle of selecting where Buffett's capital goes and this is supported by serious consideration for those businesses that possess a strong economic moat around them to protect the economic castle's cash flow and profit.

There is no way you can escape making mistakes, but if you avoid those risk that are obvious risk and the level of uncertainty is high you will do better.

Focus InSight: Keep it real simple and protect what you have invested in beit time or money.

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Top five of investment Blogs

These are my most visited blog since last August;

Excerpt of Ray Dalio's ideas
Copy Cat Investor
Buffett Octopus is Berkshire
Top Five skills of Activist Investor
Understanding Collective Investment

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Marti Whitman on safe and cheap for stocks

Marty Whitman

I took a week off to refresh myself and complete reading "The Aggressive Conservative Investor" by Martin Whitman.

For Marti Whitman buying stocks is all about "safe and cheap". The simplest of investment approach over the long term works like a charm just like it is for Warren Buffett whose mantra is "buy and hold".

What will be your investment approach?

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Top Ten Investor Mistakes

There is no investor that is immune from making mistakes. The greatest of them all make mistakes from time to time. It's surely ain't no feather in a cap, but then again it all depends on how the mistake is viewed by the investor.

Some years ago, the CFA Institute cited the top ten mistakes investors made were;

1. No strategy
2. Too little diversity
3. Buying too high
4. Churning (frequent portfolio turnover)
5. Acting on tips
6. Paying too much
7. Making decisions based on taxes
8. Unrealistic expectations
9. Portfolio neglect
10. Not knowing your real tolerance

Focus InSight: Avoid these mistakes and with time your investment return will be great.

Stock Chart

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FII

Wanna be Rich?

Forbes 400 Richest list is a good place to start looking if you wanna be rich. To be rich requires a sacrifice of some kind or another. Most pursuit to be rich will hinge on one or all of these sacrifices beit time, money, family or relationship.

No matter how you intend to be rich, you will need:

1. Time, anywhere from 15 to 20 years
2. Money, at least a little to start
3. Family, someone to go home to after a day's grind and
4. Relationship, with a person, a group, a community, an industry or an idea.

Warren Buffett's ideas were; 

1. "buy and hold", 
2. "don't lose money",
3. "don't pay a dividend"
4. compound the return on the investible dollar
5. find the economic moat in the business
6. be patient
7. limit the mistakes you make
8. copy cat good practice
9. avoid the union base business and
10. only trust yourself

Focus InSight: Study the habits of the rich and copy the good practice that made them successful.

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FII 

Buffett Octopus is Berkshire

Berkshire Hathaway is like a eight legged octopus with its main businesses separated into two portfolios; 1. Operating businesses and 2. Investments. Each of the portfolio carries different businesses feeding into Berkshire HQ where Warren's appetite for cash allows him to satisfy his capital allocation strategy.

The Octopus

The eight legs of Berkshire if I had it to sum would be:

1. Insurance (Geico inter alia)
2. Media (Washington Post inter alia)
3. Manufacturing (
4. Utility (Mid America Energy inter alia) 
5. Transportation (BNSF Railway)
6. Home Services
7. Finance and Investment
8. Franchise Operations
9. Real Estate ( Warren's extra teeth or leg up)

All these businesses form the foundation of Berkshire's cash generating machine and each employee is like a suction cup gathering cash for Berkshire HQ the supreme conglomerate.

This business model has made many copycats, but nobody does it quite like Warren Buffett. He has made Berkshire Hathaway a mega octopus sucking up cash anywhere it exist while staying within his circle of competence. 

Focus InSight: The key strategy in a great business is finding businesses with cash run off for capital allocation in other generating units.

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FII