FINA2802G Investments and Portfolio Analysis (Spring, 2011)
Dr. Dragon Tang
Due: 1pm, Wednesday, 9 Feb, 2011
Please TYPE the assignment and submit it to tutorâ€™s mail box: No.8 (Grace Yu), 9/F K.K.Leung Building. Late assignment will receive zero mark. Remember to type your Name and University No. on the upper right-hand corner.
1. Financial Markets and the Economy. Why is financial market important to our economy? What are the other ways to finance the firms and stimulate economic growth? (Think about Japan, Germany, etc.) What are the advantages and disadvantages between those ways and the financial market?
2. Investing in Competitive Markets. You are a mutual ...view middle of the document...
b) If stock A is split two for one, how should you adjust your answer in part a)?
7. Learning investment from the gurus. Read the case article â€œWarren E. Buffett, 2005â€ and appendix on the next pages, refer to http://www.cnbc.com/id/22130601/ and â€œGreat Investors: Warren Buffettâ€, refer to http://news.morningstar.com/classroom2/course.asp?docId=145663&page=1&CN=COM Answer the following questions.
a) Summarize Warren Buffettâ€™s investments through Berkshire Hathaway Inc. Whatâ€™s new?
b) Describe Warren Buffettâ€™s investment philosophy.
c) Discuss Warren Buffettâ€™s investment strategies with specific details. What have you learned? What suggestions do you have for him?
Berkshire Hathaway Portfolio Holdings as of September 30, 2008
Monday, November 17th, 2008 | Warren Buffett with
As I noted onÂ Friday, Berkshire Hathaway (BRKa)Â has issued its third quarter 13F filing.Â This filingÂ lists the companyâ€™s stock holdings as of September 30, 2008. I always enjoy reviewing these Berkshire Hathaway filings because they provide me with a glimpse at what Warren Buffettâ€™s latest investment moves might be. Here are the latest changes.
New Berkshire Hathaway Stocks
The only new position to appear this quarter is Eaton Corporation (ETN). Eaton is a diversified industrial manufacturer focused on power management systems.Â Berkshire Hathaway added just 2,908,700 share of Eaton, which is much small than the typical Buffett purchase. Therefore, it might represent the holding of a subsidiary, such as a Lou Simpson pick for GEICO.
â€¢ ConocoPhillips (COP): 83,955,800 shares (40.7% increase)
â€¢ NRG Energy, Inc. (NRG): 5,000,000 shares (54.4% increase)
â€¢ US Bancorp (USB): 72,937,126 shares (6.3% increase)
The significant news here is Warren Buffettâ€™s big move into oil with ConocoPhillips. It looks like Mr. Buffett might have been a bit early on this oil play, since the price of oil has dropped significantly since the end of September. However, it should be noted that Mr. Buffett has repeatedly stated that he is not a market timer.Â
I must admit that Iâ€™ve been also watching the price of oil. I made myself a note a few months ago to review oil stocks if the price of crude dropped below $55 a barrel. We are right at that price level now, so I will be looking at some of my favorite energy stocks again.
â€¢ Bank of America (BAC): 5,000,000 shares (reduced byÂ 45%)Â
â€¢ Carmax Inc.Â (KMX): 18,444,100 shares (reduced byÂ 13.4%)
â€¢ Home Depot Inc. (HD): 3,700,000 shares (reduced by 11.5%)
â€¢ Lowes Companies Inc....