Tuesday, November 4, 2008

Buffett Likes Those Quarterly Cash Payments

The Oracle of Omaha Warren Buffet has probably been in the news more in the last couple years than his first 50 years of his business career. One reason is that he is one of the richest people in the world second he has made his fortune strictly off of investing and third he is at the twilight of his career. But the reason for this article was to touch upon his investing style, and what he looks for in order for him to invest or buy the complete company. I will not get into the details with this post, but I do want to bring up a point, which is Warren Buffett- The Ultimate Dividend Investor(see dividendgrowthinvestor.com, a good article) has transformed as an investor over his long career. Yes Warren Buffett still very much adheres to the rules that Ben Graham wrote nearly 75 years ago which were Margin of Safety and Mr. Market. I do believe he is the ultimate dividend investor. Many of his public companies are dividend paying ones, plus the companies that are wholly owned subsidiaries send profits back Berkshire Hathaways(BRKA, BRKB) bottom line, much like the float of his insurance companies do. Buffets Berkshire(BRKA, BRKB) has been forced to change just out of its shear size. However I do believe in his personnel portfolio he still looks for 50 cent $1 bills. This is just my personnel observance while reading many books and articles that have been written on him.





This article intends to point out that he has gravitated to investing in large, cash paying companies rather than his early years which were Ben Grahams, cigar butt style of investing.


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