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(Daily Mail)   What do you get when you invest $10,000 the Warren Buffett way? $1.1 billion dollar richer   (dailymail.co.uk) divider line 38
    More: Obvious, Warren Buffett, Berkshire Hathaway, portfolios, amateur investor, Phoenix Business Journal, University of Kansas  
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12090 clicks; posted to Main » on 18 Sep 2013 at 8:18 AM (42 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



38 Comments   (+0 »)
   
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2013-09-18 08:21:51 AM
It was a bit more than $10,000. That was only the first of several stock purchases. But still, not bad for the old guy.
 
2013-09-18 08:21:53 AM
That's why I've got all my money in hooker futures.  When the economy comes back everyone's gonna want to celebrate with a hooker and the 'BAM'.  I'm sitting on easy street.
 
2013-09-18 08:24:55 AM
Thanks subby for confirming yet again that I'm a professional failure.
 
2013-09-18 08:30:41 AM
In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.
This morning, the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million.


Reading comprehension fail, submitter. He has spent at least $1.2m on shares (likely far more), since the share value has not fallen below $300 in the intervening time.

/somebody will now point out how I've screwed up the sums
 
2013-09-18 08:34:26 AM
Rich person becomes more rich, news at 11.
 
2013-09-18 08:35:04 AM
In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.

I don't think every Joe Schmoe had $95K just lying around ready to go in 1980.. My folks had just used most of their savings on a $900 used Dodge Dart.
 
2013-09-18 08:39:28 AM
$10,000 in 1980 was a lot of cash
 
2013-09-18 08:42:57 AM

Rapmaster2000: That's why I've got all my money in hooker futures.  When the economy comes back everyone's gonna want to celebrate with a hooker and the 'BAM'.  I'm sitting on easy street.


Specifically, the corner of Easy St. and Main.
 
2013-09-18 08:53:50 AM
This is how you pull yourself up by your bootstraps!

Too obvious?
 
2013-09-18 09:12:49 AM
Still a very risky strategy. There is no mention of diversification to other investments. If he had been dumping all this cash into a Maddoff fund the story would read differently.
 
2013-09-18 09:14:23 AM
Buffet became wealthy by buying undervalued assets. This guy just bought shares in Buffet's company.

This man did not become rich the Buffet way.
 
2013-09-18 09:14:27 AM

FarkinNortherner: In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.
This morning, the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million.

Reading comprehension fail, submitter. He has spent at least $1.2m on shares (likely far more), since the share value has not fallen below $300 in the intervening time.

/somebody will now point out how I've screwed up the sums


Perhaps the 4300 is the unadjusted number after splits?
 
2013-09-18 09:20:26 AM

FarkinNortherner: In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.
This morning, the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million.

Reading comprehension fail, submitter. He has spent at least $1.2m on shares (likely far more), since the share value has not fallen below $300 in the intervening time.

/somebody will now point out how I've screwed up the sums


You are not looking at the Berkshire A shares which are 173,299 a share.
 
2013-09-18 09:21:54 AM

Iplaybass: FarkinNortherner: In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.
This morning, the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million.

Reading comprehension fail, submitter. He has spent at least $1.2m on shares (likely far more), since the share value has not fallen below $300 in the intervening time.

/somebody will now point out how I've screwed up the sums

Perhaps the 4300 is the unadjusted number after splits?


I'm not going to look it up, but I doubt Berkshire Hathaway has ever split. He likes to keep the share price nice and big.
 
2013-09-18 09:23:23 AM

koniver: FarkinNortherner: In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.
This morning, the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million.

Reading comprehension fail, submitter. He has spent at least $1.2m on shares (likely far more), since the share value has not fallen below $300 in the intervening time.

/somebody will now point out how I've screwed up the sums

You are not looking at the Berkshire A shares which are 173,299 a share.


That's what I'm referring to, by the way, in my last comment.
 
2013-09-18 09:25:19 AM
As was already mentioned, we don't know how much he invested, but it was  far more than $10,000. It sounds like he put all his eggs in one basket and got lucky. His lack of diversification is a very bad idea.

But hey, my return will be far higher when my two dollar power ball ticket wins 400 million tonight.
 
2013-09-18 09:28:32 AM

stuhayes2010: $10,000 in 1980 was a lot of cash


Adjusted for inflation that's almost 30k and that was a large amount of money in 1980 especially when you consider a new car cost 5k in 1980
 
2013-09-18 09:33:13 AM
Good for him.

I am on my way as well. I invested all my savings I the guy I heard about, Bernie Madoff. I should really check in to see how rich I am. I bet I can ditch the 9 to 5 job by now.
 
2013-09-18 09:43:14 AM

BigBooper: As was already mentioned, we don't know how much he invested, but it was  far more than $10,000. It sounds like he put all his eggs in one basket and got lucky. His lack of diversification is a very bad idea.

But hey, my return will be far higher when my two dollar power ball ticket wins 400 million tonight.


The lottery is a tax on people who are bad at math, and weren't lucky enough like me to get in touch with the widow of General Nkumbe. As soon as that check comes in from Nigeria, I'm going to be set!
 
2013-09-18 09:58:13 AM

koniver: You are not looking at the Berkshire A shares which are 173,299 a share.


Yes, I am. He bought 300 shares at the low values listed in TFA. Subsequently he bought further shares. Given that Berkshire A have never fallen between $300 in the intervening period (they're now vastly more than that (and an insane investment choice for most people)), and that he bought 4000 additional shares, he paid at least $1.2m. Right?
 
2013-09-18 10:00:30 AM
I guess whoring is still viable option for me.  I work alone no pimps.  More money that way.
 
2013-09-18 10:27:48 AM

FarkinNortherner: koniver: You are not looking at the Berkshire A shares which are 173,299 a share.

Yes, I am. He bought 300 shares at the low values listed in TFA. Subsequently he bought further shares. Given that Berkshire A have never fallen between $300 in the intervening period (they're now vastly more than that (and an insane investment choice for most people)), and that he bought 4000 additional shares, he paid at least $1.2m. Right?


No divs either so this was money out of his pocket not reinvest
 
2013-09-18 10:40:51 AM
in 1980, my dad almost did the same thing at the urging of one of his best friends.... My dad instead bought a truck and used the rest of his savings to put a down payment on a house, which in total amounted to just under $10,000... He still regrets the decision to this day.
 
2013-09-18 11:40:30 AM
When the economy crashed and I lost my job, I had $18,000 saved up.  Based on Buffet's advice to be greedy when others are fearful, I invested $500 (all I could bring myself to invest given I didn't know how quickly I would find a new job).  I personally got more fearful when the stock I bought at $5 dropped to $1, and rather than investing more, I just sat on my current investment.

Sold it 1.5 years later for $850. Now wish I had bought 18000 shares, as they would be worth $150k at the time I sold them, and $230k as I write this now.
 
2013-09-18 12:10:05 PM
1.1 billion dollars dollar richer?
 
2013-09-18 12:32:13 PM

monoski: Still a very risky strategy. There is no mention of diversification to other investments. If he had been dumping all this cash into a Maddoff fund the story would read differently.


Nope... there is ZERO luck involved with investing... it's all skill... he made money, therefore he was highly skilled and knew what he was doing...

/gotta love America... the guy who owns the shovel gets rich while the guy who actually digs the hole gets thrown into it and buried...
 
2013-09-18 01:58:08 PM
"$1.1 billion dollar"

 Redundant headline is redundant.
 
2013-09-18 02:44:50 PM
The key to making money is to have money from the start....thus the rich stay rich and the poor play lottery.
 
2013-09-18 04:02:00 PM
Not to worry, unless he is a liberal democrat, Obama will come take most of it because
"we have to share the wealth".....
 
2013-09-18 04:17:57 PM
Wow there's a 1.1 Billion dollar bill? Who's picture is on that, Obama?
 
2013-09-18 05:03:25 PM

dolphkhan: In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.

I don't think every Joe Schmoe had $95K just lying around ready to go in 1980.. My folks had just used most of their savings on a $900 used Dodge Dart.


Not to mention 1980 was deep in recession.
 
2013-09-18 05:43:34 PM
I really don't have anything snarky to say. Good for him.
 
2013-09-18 06:11:47 PM
No. Misleading article is misleading. The guy bought 300 shares in 1980 for $94,300. I don't see anywhere that BRK.A shares have ever split. It says "the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million. 'I kept running the family business, but I just kept buying Berkshire.'"

Apples to apples, $10,000.00 in 1980 is worth:

$27,800.00 if saved in a gold portfolio.
$27,900.00 if you put it under a mattress.
$48,700.00 if saved in a short-term asset.
$121,000.00 if saved in a long-term asset at a term of 1 years.
$274,046.98 if saved in a S&P portfolio with dividends reinvested.
$6,603,962.26 in Birkshire Hathaway.

It's still an amazing return but it's not $1.1B. Not sure why they had to implore trickery to make it appear it was a lot more.

http://www.measuringworth.com/calculators/ussave/result.php
 
2013-09-18 06:14:12 PM

stuhayes2010: $10,000 in 1980 was a lot of cash


In 1980 $10, 000 would have been approximately what a typical computer programmer or accountant earned in a year.
 
2013-09-18 07:42:03 PM

kg2095: stuhayes2010: $10,000 in 1980 was a lot of cash

In 1980 $10, 000 would have been approximately what a typical computer programmer or accountant earned in a year.


Son of a biatch! I must be senile for thinking those figures are accurate.

I remember my first job ever back in 1980. I earned $60 per week, but I was only 18, I think most adults would have been earning a bit more than $10,000 per annum though.
 
2013-09-18 08:08:22 PM
Well, Subby has proved one thing at any rate. Inflation has really done a job on the old investment joke.

Q. How do you make a million billion dollars with no effort?
A. Start with ten.

That first million is always the hardest. Damn, it's a bugger. I think there is some kind of inverse work=money power law involved. The less money, the more you have to work. Eventually making millions becomes a totally passive operation, like going from a house made of paper straws to a house made of bricks. The Big Bad Wolf at the door doesn't even have to huff and puff when you are poor. All he has to do is lean on your house.
 
2013-09-18 09:43:07 PM

FarkinNortherner: In 1980 he bought 40 shares in Berkshire for $265 each - an initial investment of $10,600.
Two weeks later he bought 60 more shares at $295 each and, a month later, spent $66,000 buying 200 shares at $330.
This morning, the 4,300 shares he accumulated in Berkshire since 1980 were valued at $746 million.

Reading comprehension fail, submitter. He has spent at least $1.2m on shares (likely far more), since the share value has not fallen below $300 in the intervening time.

/somebody will now point out how I've screwed up the sums


Subtard can do exactly one thing right:

fark shiat up.
 
2013-09-19 12:45:19 AM
From the headline I thought Hillary had been some more investing since resigning as SOS.
 
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