Value Investing Podcast

Warren Buffett defined the earnings called "Owner Earnings" that is more relevant to the valuation of a company than the reported earnings on the income statement.  The owner earnings can be calculated by adjusting the reported accounting earnings in the following ways: Owner Earnings = (a) Reported earnings + (b) depreciation, depletion, amortization and certain other non-cash charges - (c) the average annual amount of capitalized expenditures for plant and equipment = cash flow from operating activities - capital expenditures Reference Documents: 1986 Berkshire Hathaway Shareholder Letter Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

This episode covers the concept called Mr. Market that teaches how you can be prepared with short-term stock price fluctuations.  It is a very simple concept to understand, but it is not an easy concept to implement in real life if you are an emotional person and are attached to the money invested in the stock market.  Remember that Mr. Market is there to serve you, not to guide you. Reference Documents: 1987 Berkshire Shareholder Letter; 1985 Berkshire Shareholder Letter Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

This episode covers Warren Buffett's views on why "independent" directors may not be best positioned to represent a majority of shareholder under the current corporate system, and how the board of directors should perform their job on behalf of shareholders.  Warren Buffett provides his own criteria to select the best directors who can truly be independent and are willing to challenge a forceful CEO. Reference Documents: 1993 Berkshire Shareholder Letter; 2002 Berkshire Shareholder Letter; 2004 Berkshire Shareholder Letter Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

Followed by the EP8 which covered the first 7 business principles, this episode covers the rest of 8 business principles in the owner's manual written by Warren Buffett for Berkshire Hathaway shareholders. The purpose of the manual is to explain Berkshire’s economic principles of operation and the manual is included in every annual letter for new shareholders as a reference to understand the important principles behind how Buffett and Munger run the company. Owner's Manual: http://www.berkshirehathaway.com/ownman.pdf Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

This episode covers the first 7 business principles of the owner's manual written by Warren Buffett for Berkshire Hathaway shareholders. The purpose of the manual is to explain Berkshire’s economic principles of operation and the manual is included in every annual letter for new shareholders as a reference to understand the important principles behind how Buffett and Munger run the company. The rest of the 8 principles will be covered in the next episode. Owner's Manual: http://www.berkshirehathaway.com/ownman.pdf Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

In this episode, I discuss the following two topics.1) Basics of insurance business in terms of how insurance companies make money and why Buffett likes them2) Warren Buffett's investment on an insurance company called GEIGO Two key terms for the valuation of insurance companies “Float”, or available reserve, is policyholder money held, but not owned, by insurers, which comes about because there exist time intervals between received premiums and incurred losses to be paid out, usually more than a year.Float = Policy holder money held (Liability side) – Policy holder money not held yet (Asset Side)= [loss and loss adjustment reserves + unearned premium + fund held under reinsurance assumed + other policy holder liabilities] – [premium receivables + loss recoverable + deferred policy acquisition costs + deferred charges on reinsurance + prepaid taxes] Combined ratio = (Incurred Losses + Expenses) / Earned Premium Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

In this episode, I discuss the following two topics in Buffett's investment partnership letters. 1) 1967 letter on why Buffett thinks that his past 10-year outstanding performance would not be replicated in the future 2) 1969 letter on the decision to liquidate Buffett's investment partnership despite the incredibly successful past performance Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

In this episode, I discuss the following two topics in Buffett's early investment partnership letters. 1) Buffett's views on why institutional investors do not perform as well as the general market 2) Why Buffett thinks that a conventional diversification strategy does not make sense for his investment portfolio Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

In this episode, I discuss four topics regarding Buffett's investment partnership.1) Deep dive analysis on why Buffett invested in a company called Dempster Mill manufactoring,2) Buffett's definition of conservative investing,3) A growing fund size and its impact and4) Investment performance relative to the market. Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

In this episode of Value Investing, I discuss how well the first Warren Buffett's investment partnership had performed in its 12 years of operation relative to other mutual funds and the market. In the second half, I perform a deep-dive analysis on why Buffet purchased two stocks that accounted for 25% and 35% of his total portfolio value. Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/

In this episode, I talk about how Warren Buffett started his first investment partnership with a small amount of money and compare his fund's fee structure against that of general hedge funds today. In the second part of the episode, I discuss the three strategies that Warren Buffett used at his early investment career. Podcast website: https://valueinvestpodcast.com/ Donate: https://valueinvestpodcast.com/donate/