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Why Buffett does not practice what he preaches? - Views on News from Equitymaster
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  • Jul 3, 2013

    Why Buffett does not practice what he preaches?

    Here is today's recommended reading list from Equitymaster...

    Are you trying to predict the markets?
    Most investors have a tendency to try predicting short term market movements. But how many times do the predictions turn out to be correct? Again these predictions are also influenced by many factors viz. biases, type of stocks held, etc. In this interesting piece, the author has highlighted about some basic mistakes that investors tend to make. (Money Morning)

    How can investment in Bitcoins put you into troubles?
    The Winklevoss brothers are known for their dispute with Mark Zukerberg over Facebook's origin. They have been into Bitcoins since a long time and hold around 1% of the world's supply of Bitcoins. Recently, they are targeting to create the first mainstream vehicle for investing in Bitcoins. This means, investors who have zero technical know-how, can add Bitcoins to their portfolios with an ordinary brokerage account. The said proposal has been filed with SEC (Securities and Exchange Commission). As per the filing with the SEC, the risks associated with Bitcoins are disclosed. The article discusses eight ways that investing in Bitcoins could go wrong. Read on to know more... (The Washington Post)

    Why Buffett does not practice what he preaches?
    Warren Buffett's fascination for dividends is well known. However, his company Berkshire Hathaway (BH) follows a zero dividend policy. In short, Buffett expects the companies he owns in his BH portfolio to pay dividends but he himself keeps the shareholders of BH aloof from dividends. Basically, it appears that he does not practice what he preaches. However, you cannot expect an investing legend like him to do something which is contrary to his own advice. There has to be some reason behind BH's zero dividend policy. This article explains the reasons behind it. It can give you insights on why some non-dividend paying companies are equally good compared to their counterparts given non-payment of dividends is justified on a case to case basis. Read on to know more... (Seeking Alpha)

    How far is China from a huge asset collapse?
    Is China's very own Minsky Moment much closer than we think? The fear that China's monetary system is under great stress is now turning into something much bigger. And the events in the Chinese financial markets these past few days seem to be adding more fuel to the fire we believe. Read on to find out how bad things really are and whether the dragon nation is on the verge of a major asset price collapse... (The View from the Blue Ridge)

    Guess who is the winner in India's 'war on gold'?
    The Indian government has imposed loads of restrictions on gold imports. Meanwhile, there is another precious metal that is reaping the benefit of this. The import of this metal has nearly doubled on a year on year basis so far in 2013. It also shows that investors have flocked to this metal, most likely as a substitute for their desire for gold. Read on to find out more about this metal... (ZeroHedge)

      Bhavita Nagrani (Research Analyst) is a Chartered Financial Analyst (ICFAI) with nearly six years of experience in the field of equity research. She has a deep understanding of the global as well as the domestic Healthcare industry and keenly tracks the developments therein. When it comes to stock investing, she is a strong advocate of the bottom-up approach to stock picking and has a remarkable ability to discern nuances in the business models of companies belonging to the same industry. Bhavita is the contributor to our large cap franchise, StockSelect.

    This article is for information purposes only. The link in this article will let the User leave www.equitymaster.com and proceed to the linked article. The User's use of each such site is subject to Terms of Use on www.equitymaster.com and other terms of use, if any, contained within each such site. Any data and charts if used, in the article have not been authenticated by Equitymaster and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views, if any in the linked article are not of Equitymaster. Equitymaster will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any investment decisions based on this article. Please read the detailed Terms of Use of the web site.



    Equitymaster requests your view! Post a comment on "Why Buffett does not practice what he preaches?". Click here!

    4 Responses to "Why Buffett does not practice what he preaches?"


    Jul 4, 2013

    I feel that "What We're reading" is one of the best service by equity master. Kindly keep up the good work. Otherwise it will be difficult for us to search web for all happennings in the world of financial markets & economy.

    Dr. Rajeev Kapur: You should accept the fact that we need to keep all our avenues open for learnings. Equity master as an organization having its own limitation to provide all happenings in the world. Sometimes the links may have copyrighted material, equity master may not have rights reproduce the same. but can provide the links to those materials. If you expect equity master to provide only their own produced materials, then we may lose some learning oppourtunity. Personally i donot feel this as a postmaster job.



    Jul 4, 2013

    But do not take out the link please. Good to know that WB also does not practice what he preaches, once when it come to the core. Also, u have not responded to my query that WB is relevant in Indian conditions, where in US, it is more organized in share market. I believe that in India value investing does not mean long term, as satyam, harshad mehta etc.,although SEBI has some control now. I subscribe to Wealth Alliance, ValuePro & EM secrets



    Jul 4, 2013

    Dear Sir, Thank you for writing to Equitymaster Apologies for the inconvenience caused to you. Kindly note that our intention of starting this service was not to deprive readers of our way of looking and analyzing things. Please rest assured that we would continue to provide such information and the depth and the frequency of it will only increase in the future. However, we believe that there is also a lot of important material out there that our subscribers can immensely benefit from. And therefore the decision to give our subscribers an easy access to them. Going forward we will certainly ensure that all the links uploaded by us do not require registration by the readers. Keep writing into us with your views Warm Regards Team Equitymaster


    Dr Rajeev Kapur

    Jul 4, 2013

    The link to the story is a ruse to subscribe to that service e.g., Warren Buffet story can only be read if you register with Seeking Alpha. It asks you to fill in the symbols of 5 stocks - does not accept Indian Stocks. What a waste of time!!

    I do not want to register with every Tom, Dick and Harry to read an article and give away my contact info and investment patterns.

    I am a subscriber of Equitymaster and I expect you go give me complete information / article and not act as a postmaster redirecting the letters to other agencies.

    Equitymaster requests your view! Post a comment on "Why Buffett does not practice what he preaches?". Click here!

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    Aug 18, 2017 (Close)