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Data:2009-12-12 2:34
Bearish on the dollar insist on holding the oil ---
Early in March every year, "stock god" Vaulon Buffett announced to investors the investment community should be a sign of the company --- Berkshire Hathaway Annual Report last year and the year letter to shareholders, which was the U.S. investment community regarded as a "investment Bible." March 1 of the 2006 Berkshire annual report released last year, Berkshire Hathaway's insurance company's main profit growth of 29.2%, a profit of 11.02 billion U.S. dollars, earnings per share 7144 U.S. dollars.
With Buffett's investment strategy spin gold from straw, Berkshire's net assets from 1965 to 2006 42 years which have accumulated an increase of 361,156%; while the Standard & Poor's 500 Index constituent stock companies over the same period the accumulated increase of 6479%.
New York Stock Exchange data show that Berkshire shares March 1 opening 105.4 thousand U.S. dollars, the highest intraday had reached 107.1 thousand U.S. dollars, Zhong Pan to close at 106.6 thousand U.S. dollars, up 1.2 thousand U.S. dollars.
â–?decryption key points last year, profits
Buffett's annual letter to shareholders, who remain unbeaten record of multi-year investment "stock god" said the 2006 Berkshire's main source of profits from its main business --- the insurance industry. As of the end of 2006, Berkshire's insurance business achieved an underwriting profit of 3.838 billion U.S. dollars, exceeding the company's total profit 1 / 3. Buffett noted that, while in 2006 because of a heaven-sent (without the hurricane) had brought good results in 2007 of insurance business may also need to change the climate of the various withholding "risk funds." "We are ready for the possible loss of a major hurricane preparation of 6 billion U.S. dollars."
March 9, 1967, Buffett has for the first time 8.6 million U.S. dollars into the insurance industry, to date, Berkshire's insurance float payment has already accumulated 50.9 billion U.S. dollars, 40 years surged 5917.6%. Buffett pointed out that the floating deposit payment is not part of the temporary administration of insurance companies that it funds. Float gold produced there are two main reasons, first, first, insurance companies collect premiums to provide insurance services again, this time difference is usually more than one year; second loss events that took place today, and will not cause insurance companies to make an immediate payment, insurance the actual payment or even many years after the incident will need to negotiate and resolve.
According to annual report, Berkshire's manufacturing, service and retail business in 2006, achieved net income of 2.131 billion U.S. dollars, compared with 1.646 billion U.S. dollars last year, an increase of 29%. In the utilities industry, the Central American energy Berkshire holds 86.6% stake in holding company and, through the latter indirect holding of the United States's second-largest real estate brokerage HomeServices company. In 2006, the Central American energy holding company Berkshire create about 916 million U.S. dollars in net income.
â–?to invest in the oil
In addition to its core insurance business, the investment income is another Berkshire company's earnings power, including equity investments, and bearish on the dollar.
As of December 31, 2006, Berkshire shares a total investment of 22.995 billion U.S. dollars, with a total market value of about 61.533 billion U.S. dollars. Buffett Wells Fargo the largest amount of investment, reaching 3.697 billion U.S. dollars; In addition, American Express, Buffett's largest holding companies (12.6%), Moody's Corporation (17.2%), The Washington Post Company (18%), Coca-Cola ( 8.6%) and White Mountain Insurance Company (16%).
Despite the pressure on the United States so that Buffett had sold its holdings of PetroChina shares, but Buffett said it would not bend the oil pressure in the stock sale. Buffett is currently the largest foreign investor in the oil, holding 1.3% stake in PetroChina, position the total cost of 4.88 billion U.S. dollars, while the total investment in the current market value of 3.313 billion U.S. dollars, earnings rate has reached 578.89%. Buffett was in April 2003 of less than 1.70 Hong Kong dollars per share, PetroChina H shares bought. Since then, PetroChina shares have risen nearly four-fold.
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Buffett's bearish on the dollar is the following since 2002, always insisted on profitable arms. Buffett believes that the U.S. trade deficit is equivalent to 6% of gross domestic product, the large U.S. twin deficits are bound to hurt the dollar. The United States may also become too dependent on foreign capital to support its economy. The U.S. economy in a long time to achieve a "soft landing" may be only a good wish.
2000 -2004 period, Berkshire betting "America's huge trade deficit has the potential to dollar weakness," its foreign exchange investment income of up to 2.96 billion U.S. dollars. In 2005, Berkshire has started to adjust its foreign exchange investment strategies, holdings, including 12 kinds of currencies of its foreign exchange investment portfolio. As of the end of 2006, Berkshire has about one billion U.S. dollars of foreign exchange futures and the level of last September were flat, but far lower than the 2005 size of 13.8 billion during the same period. Nevertheless, last year, the company's foreign investment is still achieved 186 million in revenue.
Is the so-called spin gold from straw, March 1, said Buffett has just been held by South Korea's POSCO (PSCO-US) 4% stake in Posco shares rose 3.8% the next day, to close at â‚?366,500.
Buffett's letter pointed out that the year end of 2006, from 10 billionaires, business insurance and investment company holds the world's third-largest steelmaker 349 million. Posco has not Berkshire's holdings in 2005 list.
â–?flaunted mergers and acquisitions "Rokuji Scriptures"
In addition to equity investments and foreign exchange earnings over many years Buffett has been the leading large mergers and acquisitions. , 76-year-old Buffett said Berkshire's insurance business last year, despite soaring by 38%, but to maintain this strong momentum, still needs some large mergers and acquisitions.
In the letter addressed to shareholders, Buffett said Berkshire should make full use of the company's cash flow, some large M & A transactions. How to conduct a successful mergers and acquisitions, "stock god" showed the sixth canon, that is, first of all large transactions, mergers and acquisitions the company's pre-tax earnings of not less than 75 million U.S. dollars, unless it is a good way to integrate into a Berkshire Hathaway company's an enterprise; followed by a continuing profitability; third business receipts in good condition and satisfaction with equity returns, while the target company should be no (or little) debt; 4 is to have existing management team, in principle, Berkshire will not be Airborne management team; 5 is the business simple, high-tech and no chance; 6 is to provide a bid.
Who is a successor?
Year early in March, the Berkshire Buffett's successor at the helm will become a hot topic in the U.S. investment community. This year was no exception, Buffett, now 76 years old when the pass the torch in the end still a suspense.
Buffett in the "letter to shareholders" and revealed that Berkshire has plans to break his position as chief executive officer and chief investment officer, in October last year, this plan has been approved by the Board, the company plans to hire one to many one investment banker, as the company's chief investment officer candidates in order to Buffett's inability to "Trader" the assurance that the company's normal operations.
Last year, Buffett's five candidates for the uproar had staged a number of versions. But Buffett had made clear that Berkshire's board of directors has delineated three external CEO candidates. Annual letter, Buffett also concerns about their age to the outside world had euphemism refuted. Buffett said that from the investment business point of view, the above-mentioned possible candidates to replace him with no smaller; for example, is responsible for the investment operations of insurance companies to cover Lou Simpson to succeed Buffett's investment in short-term work, he had this year, 70 years old.
In addition, the highly praised Buffett's Geico insurance company CEO Tuoni Nai Leslie once again become a hot focus. Has been working for Geico's 45-year-Tuoni Nai Leslie, in 1992, became the company's CEO, the proliferation of Berkshire insurance a person must be contributed. 2003 -2,006 years, Geico's insurance policies increased from 570 million copies of the current 8.1 million, an increase of 42%.
(Beijing Youth Daily)
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