Buffett on Start-Up Investing

CS of Buffett Filter on Catastrophic Risk

The above is an example of how Buffett would approach a “start-up”.  You can assume that he would almost 99.9999999999999999% pass on all opportunities.

Gold Allocation

Performance_Update_2017_12

Today the Fed reports it holds 8133 tonnes of gold, worth $349.4  billion at $1,330 an ounce, which equals 7.9$ of the Fed’s reported $4.4 TRILLION in liabilities.  The current model suggest a 56% weighting of gold to 44% holding of S&P 500.

5 responses to “Buffett on Start-Up Investing

  1. A great read and very relevant today. One of his factors to predict returns and value of stocks is interest rates. In the late 90s he said one way for stocks to consider to grow at a high pace is an decrease of those rates. That’s less likely today so they will most likely have to come from gdp and earnings increases exclusively. What is reasonable to expect from now on?

    Airlines being a lousy business has not been reflected in the market. It will be interesting to study the number of new airplane orders to predict if it could turn soon. Oil going higher is hardly going to help the airlines.

    Could you please help me understand what he means by wanting a 15% day one return on his capital?

    • I think Buffett means that he does not wish to FORECAST a 15% return on capital but invest when the company is ALREADY generating that return. He won’t speculate in the normal sense of the word.

  2. John, that summary that you did up was really great. I loved the example of Buffet assessing an investment with 3 things in mind – the first one being protection of capital. It’s such a simple criteria that we all can easily lose sight of

  3. Re: Mid-Continent, do I understand that he paid $60k for 16% of a company making $360k per year, so his P/E was 1 ?!?

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