Canada To Start Keystone Pipeline Construction – Defy Obama

Canada To Start Keystone Pipeline Construction – Defy Obama
fox.com.sundaytimesdaily.com
Prime Minister Stephen Harper announced from Ottawa, that Canada would permit the Keystone Pipeline construction. Canada and affected States will allow construction in both the…
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Milestone Reached : 2000 Articles Published

The Anxiety Disorders Association of Victoria (ADAVIC)'s photo.
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WARREN BUFFET Update on Exxon Purchase

 

13F filings came out last week and the most notable stock purchase came from one Warren Buffett.

 

Buffett revealed his largest new stock acquisition in more than two years when his quarterly filing revealed Berkshire Hathaway (BRK.A) (BRK.B) had accumulated a $3.4 billion position in Exxon Mobil (XOM).

 Buffett believes that oil prices are going higher in the future.  His partner Charlie Munger:

“Oil is absolutely certain to become incredibly short in supply and very high priced. The imported oil is not your enemy, it’s your friend. Every barrel that you use up that comes from somebody else is a barrel of your precious oil which you’re going to need to feed your people and maintain your civilization. And what responsible people do with a Confucian ethos is suffer now to benefit themselves and their families and their countrymen later. The way to do that is to go very slow in producing domestic oil and not mind at all if we pay prices that look ruinous for foreign oil.

It’s going to get way worse later …

The oil in the ground that you’re not producing is a national treasure … It’s not at all clear that there’s any substitute [for hydrocarbons]. When the hydrocarbons are gone, I don’t think the chemists are going to be able to just mix up a vat and create more hydrocarbons. It’s conceivable that they could, I suppose, but it’s not the way to bet. We should spend no attention to these silly economists and these silly politicians that tell us to become energy independent.

Of course it is possible Warren Buffett is wrong – do you want to be on the other side of that contract ?

What Is A Bond Investor To Do ? Guidelines

Bond returns are at record lows.

Bond investors must consider a switch of some funds into equities but conservative investors fear the stock market is a Jedi Knight turned to the Dark Side waiting to swoop down and destroy their portfolio. You must act to preserve your ” buying power” but what to do ?

Here is a guideline we suggest for building a portfolio that cuts down risk( risk cannot be eliminated ):

1) limit selections to common stock listed on major exchanges

2) no stock selling for less than $5.00

3) only select companies that are profitable

4) only purchase stocks that are paying a dividend

5) avoid attempts at market timing

The strategy outlined in this  guideline is simple but not easy to follow. For a more detailed explanation of selection criteria please refer to The Apprentice Millionaire Portfolio available from amazon.com

Portfolio  Management : Engagement Process for Jack A. Bass Managed Accounts

The Engagement Agreement authorizes us to officially act on your  behalf and also provides for protection of confidentiality in regards to the dissemination and distribution of your sensitive financial information.Generally you will name Jack A. Bass as a person allowed to trade your portfolio – BUT without any authority to remove funds from your account.

Due Diligence. Once our company is engaged, we undertake the required due diligence to confirm and verify the necessary information required to execute your request.

Evaluation. After due diligence we evaluate your / your  company’s current value and estimate future value based on recent market and other comparable data.

Fees. Engagement Fees are  NOT based on the number of hours and direct costs required to complete due diligence, perform an evaluation, and prepare the necessary information to support your request that we act for you.Our initial review: this includes performing financial analysis, conduct competitive comparisons, in- depth financial reviews, and validating the necessary information to prepare the most compelling portfolio related to your needs.

We earn our fees by performance :

1 % per year as administration

20 % of annual portfolio gains calculated twice a year

There is no cost or obligation to contact us at info@jackbassteam.com ( or call Jack directly at 604-858-3202 – same time zone as Los Angeles)

Main website http://www.jackbassteam.com

Portfolio Management : Engagement Process for Jack A. Bass Managed Accounts

The Engagement Agreement authorizes us to officially act on your  behalf and also provides for protection of confidentiality in regards to the dissemination and distribution of your sensitive financial information.Generally you will name Jack A. Bass as a person allowed to trade your portfolio – BUT without any authority to remove funds from your account.

Due Diligence. Once our company is engaged, we undertake the required due diligence to confirm and verify the necessary information required to execute your request.

Evaluation. After due diligence we evaluate your / your  company’s current value and estimate future value based on recent market and other comparable data.

Fees. Engagement Fees are  NOT based on the number of hours and direct costs required to complete due diligence, perform an evaluation, and prepare the necessary information to support your request that we act for you.Our initial review: this includes performing financial analysis, conduct competitive comparisons, in- depth financial reviews, and validating the necessary information to prepare the most compelling portfolio related to your needs.

We earn our fees by performance :

1 % per year as administration

20 % of annual portfolio gains calculated twice a year

There is no cost or obligation to contact us at info@jackbassteam.com ( or call Jack directly at 604-858-3202 – same time zone as Los Angeles)

Main website http://www.jackbassteam.com

Warren Buffett – The Oracle speaks

President Barack Obama and Warren Buffett in t...

President Barack Obama and Warren Buffett in the Oval Office, July 14, 2010. (Photo credit: Wikipedia)

In the market’s darkest hours over the past five years, timely insights from Warren Buffett always seem to calm rattled investors. Buffett penned an op-ed piece for The New York Times in 2008 entitled “Buy AmericanI Am.” – we’ve referred to this op-ed piece a million times .

Buffett’s insights are timeless, a simple rule dictates his buying: “Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies
make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be
setting new profit records 5, 10 and 20 years from now.

Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month – or a year – from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up.

So if you wait for the robins, spring will be over.” The Pragmatic Capitalist, a financial blog, ran a guest post yesterday that parodied Buffett’s op-ed piece – “Sell American. I am.” which made a case for shorting the S&P 500 – why?:

i) S&P 500 is 49% overvalued – projected return 3.87% per annum over next ten years – BULL CASE ALREADY PRICED INTO THE MARKET;

ii) U.S. secular bear market still in progress – March 2009 low likely did not mark the end of this secular bear; and
iii) Extreme Optimism – Fund managers aggregate long exposure at multi-year highs. Based on historical precedent, the piece says, the SPX will likely fall to around 743 in less than four years

Warren Buffett :Isn’t Freaking Out About The Fiscal Cliff

The Snowball: Warren Buffett and the Business ...

The Snowball: Warren Buffett and the Business of Life (Photo credit: Wikipedia)

 

Nov 16

The CBO has issued a report that says the U.S. would go back into a recessionif it were to go over the fiscal cliff – over $600 billion in tax and spending provisions set to change on January 1, 2013.

In fact the fiscal cliff has rapidly grown to become the number one concern for investors, climbing past Europe‘s sovereign debt crisis, and China‘s slowdown.

But Warren Buffett, the Oracle of Omaha, told CNNthat he does not think the U.S. will go into a recession. He also thinks president Obama is right in trying to raise $1.6 trillion in revenue:

“We need $1.6 trillion. We need to get our revenue up to about 19 percent of GDP, and we need to get our expenses down to 21 or 21.5 percent of GDP. Everyone knows that. So it’s going to take significant action on both sides. And $1.6 trillion happens to be 1 percent of GDP, we’ll need that much revenue, and we’ll need to cut expenditures significantly too.

…”If we go past January 1st, I don’t now if it will be January 10th, or February 1st, but we’re not going to permanently cripple ourselves because 535 people can’t get along.

…We had Hurricane Sandy which disrupted the economy for a period, we had Katrina many years ago, we have things that will disrupt the economy, I mean 9/11 was an extraordinary case but we have a very resilient economy. We’ve had one for hundreds of years and the fact that they can’t get along for a month of January is not something that’s going to torpedo the economy.”

When asked if he thought the U.S. would go over the fiscal cliff now that the elections are done and we know the make up of Congress, he said it depends on the Republicans:

“It really depends very much on the Republicans in Congress. It doesn’t take the whole group in Congress to avoid that. I mean if 25 Republicans decide that they’ll put country above party and sign up for something that makes sense then we don’t need to go over the fiscal cliff.”

Watch the interview at CNNMoney:

Warren Buffett Speaks – AMP Listens

President Barack Obama and Warren Buffett in t...

President Barack Obama and Warren Buffett in the Oval Office, July 14, 2010. (Photo credit: Wikipedia)

Oct. 25

Warren Buffett. Wednesday on CNBC’s Squawk Box, Warren Buffett was interview by Becky Quick

he said the following,

“I think the stock market generally is the best place to have money, and – but I think that there’s no question that worldwide there is some slowing down going on. And in the United States, actually, residential housing is picking up, and we’ve been waiting for that a long time, and that will have a significant impact. It hasn’t gotten to any big level yet, but our carpet businesses and brick businesses and all of that will come on with residential construction, and that has turned.

But the general economy, I think it’s a little bit better in the U.S., certainly better in the U.S. than it is in Europe.” Buffett also believes American business will get a lot better over the next four years – no matter who is elected President.

Buffett’s comment were similar to those of JPMorgan (JPMCEO Jamie Dimon, who was interviewed at the Council on Foreign Relations earlier this month, “The President, whoever he is next, should recognizes one thing for certain, they go into that office with a royal straight flush…If you invest in one place in the world, it would be here.”

From The New York Times, who can forget Buffett’s “Buy American. I Am.” op-ed piece he penned (October 17, 2008), which helped rally  U.S. equity markets: “THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. So…I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly,fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense.

These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now…Over the long term, the stock market news will be good.” Since October 17, 2008, the DJIA has gained 45.5% and the S&P 500 is up 48.7%.

 

 

Warren Buffett can’t understand why his investment strategy isn’t copied more often

 

Don’t swing at everything

“The stock market is a no-called-strike game. You don’t have to swing at everything–you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!'”

Source: The Tao of Warren Buffett via Engineeringnews.com

Be greedy when others are fearful

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”

Source: Letter to shareholders, 2004

Read more: http://www.businessinsider.com/warren-buffett-quotes-2012-8?op=1#ixzz26Wv1YGB4

And now for another nugget from Warren Buffett’s talk with MBA students at Richard Ivey School of Business (based on notes from market folly).

Why haven’t more people copied his investment strategy? Buffett replies:

I don’t know! It’s not about high IQ. It just seems not to resonate with some people and talking about it or showing them the performance/results won’t help. They just don’t feel good about it. I am also puzzled by why value investing hasn’t caught on. I mean, what other type of investing is there? You want something other than value? But the things is, people just don’t want to believe. They elect things that are emotionally satisfying.Even if you show them the results, they still don’t believe you. However, eventually proof comes through results.

So what is value investing? It involves techniques like looking for low price-to-earnings ratios, but basically it comes down to a philosophy. Says Buffett:

Value investors are not concerned with getting rich tomorrow. People who want to get rich quickly, will not get rich at all. There is nothing wrong with getting rich slowly. Remember we both sleep on the same mattress and eat the same food.

This is the most important thing

“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1″

Source: The Tao of Warren Buffett

Beware when investing turns into speculating

“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities ¾ that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future ¾ will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

Source: Letter to shareholders, 2000

No need to be a genius

No need to be a genius

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”

Source: Warren Buffet Speaks, via msnbc.msn

Read more: http://www.businessinsider.com/warren-buffett-quotes-2012-8?op=1#ixzz26WvdJG7r

Some lessons have to be memorized

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