Tag: Warren

08
Oct
2020
Posted in technology

Warren Buffett’s Snowflake, Barrick Gold bets signal new strategy

  • Warren Buffett’s Berkshire Hathaway has made surprise bets on Barrick Gold and Snowflake in recent months, clashing with the investor’s past warnings about gold, tech stocks, and IPOs.
  • Berkshire’s bosses may be pursuing smaller, more frequent investments and cashing in on corporate actions, Brian Gongol, a longtime Berkshire shareholder, told Business Insider.
  • “I wouldn’t be surprised if Buffett, Weschler, Combs, and Ajit Jain all got on the phone and had a talk where they decided to ‘think small’ with some fraction of the company’s cash pile,” Gongol said.
  • Buffett and his team also signaled Berkshire was “the best big investment they could find” when they spent $5.1 billion buying back stock in May and June, Gongol said.
  • Visit Business Insider’s homepage for more stories.

Warren Buffett’s Berkshire Hathaway stunned investors when it revealed a $560 million stake in Barrick Gold in August, and shocked them again with its $735 million bet on Snowflake when it went public in September.

After all, the billionaire investor has blasted gold as an inferior asset and repeatedly warned against backing aggressively valued, lossmaking technology companies, and IPOs.

Yet Barrick and Snowflake aren’t necessarily betrayals of Buffett’s principles, according to Brian Gongol, a longtime Berkshire shareholder and close follower of the company.

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“At first glance, the Snowflake investment really does look out of character — even for Weschler and Combs,” Gongol told Business Insider, referring to Buffett’s two portfolio managers, Ted Weschler and Todd Combs.

However, he pointed to Buffett’s description of “work-outs” — investing opportunities driven by corporate actions such as mergers, spinoffs, and reorganizations — in his 1962 letter to investors in his partnership.

“An IPO is

06
Oct
2020
Posted in technology

Billionaire investor Dan Loeb follows Warren Buffett and Marc Benioff into Snowflake

Dan Loeb, Loeb, Third Point, Daniel Loeb


  • Billionaire hedge-fund manager Dan Loeb has joined Warren Buffett and Marc Benioff as a Snowflake shareholder.
  • Loeb’s Third Point, which counts Amazon and Alibaba among its biggest holdings, revealed a position in Snowflake in its latest portfolio update.
  • Buffett’s Berkshire Hathaway and Benioff’s Salesforce both purchased Snowflake stock in private placements immediately after it went public last month.
  • Snowflake is a natural fit for Third Point and Salesforce’s tech-heavy portfolios, but it’s an unusual bet for Berkshire given Buffett’s past warnings against tech stocks and IPOs.
  • Visit Business Insider’s homepage for more stories.

Billionaire investor Dan Loeb has followed Warren Buffett and Marc Benioff into Snowflake, the cloud-data platform that went public last month and saw its stock price more than double during its first day of trading.

Loeb’s Third Point fund counted Snowflake among its winning investments in September, its latest portfolio update shows. However, it didn’t disclose the size of its stake or when it was purchased.

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Snowflake contributed to an 11.7% gain for Third Point’s portfolio last quarter, outstripping the S&P 500’s 8.9% gain over the same period. Yet the fund’s 3.6% gain for the year to September trailed the benchmark index’s 8.9% rally.

The software company is a natural fit for Third Point, which held stakes in Alibaba, Amazon, Adobe, Salesforce, Facebook, and other tech stocks at the last count.

The same is true for Salesforce Ventures, the investment arm of Benioff’s enterprise-software giant, which backed Snowflake before it went public and bought $250 million of its stock in a private

02
Oct
2020
Posted in technology

Warren Buffett’s charity dinner spurred the boss of an online-trading platform to embrace value investing

Justin Sun Warren Buffett


  • Cryptocurrency entrepreneur Justin Sun paid $4.6 million for a charity dinner with Warren Buffett in January.
  • Sun hoped to convert Buffett into a Bitcoin fan, but instead one of his guests, eToro CEO Yoni Assia, embraced Buffett’s value-investing approach.
  • Assia read the definitive book on the subject written by Buffett’s mentor, hired a value-investing consultant, and became a bigger proponent of in-depth research and longer investment horizons, Bloomberg reported.
  • The boss of the social-trading platform also tweeted that value investing is a “hidden magic that reveals itself to you only after 20 years of making 15-20% and compounding it.”
  • Visit Business Insider’s homepage for more stories.

Cryptocurrency executive Justin Sun shelled out $4.6 million for a charity dinner with Warren Buffett in a vain attempt to convert the billionaire investor into a Bitcoin believer. Instead, one of his guests embraced Buffett’s signature value-investing strategy, Bloomberg reported on Friday.

After dining with the Berkshire Hathaway boss in January, eToro CEO Yoni Assia devoured “The Intelligent Investor,” the value-investing bible written by Buffett’s mentor, Benjamin Graham.

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The boss of the social-trading platform also recruited a value-investing consultant and told his team to spread the word about the power of in-depth research and longer investment timeframes.

“Warren Buffett’s value-investing strategy still rings true,” Assia wrote in a Twitter thread following the dinner. He described it as a “hidden magic that reveals itself to you only after 20 years of making 15-20% and compounding it.”

Assia didn’t immediately respond to a request for comment from Business Insider.

eToro, which boasts 15 million registered users and north

30
Sep
2020
Posted in technology

Silver Lake was labeled the ‘Warren Buffett of tech’ for investing billions during the pandemic. It’s emulating Buffett again with its new 25-year strategy



Warren Buffett wearing a suit and tie: Warren Buffett Getty Images


© Getty Images
Warren Buffett Getty Images

  •  Silver Lake is launching a 25-year investment strategy, The Wall Street Journal reported on Tuesday.
  • The private-equity giant is becoming even more like Warren Buffett with its longer investing timeframe.
  • Silver Lake has invested billions of dollars in Twitter, Airbnb, Expedia, and other businesses during the pandemic, similar to how Buffett handed cash to the likes of Goldman Sachs and General Electric during the 2008 financial crisis.
  • The firm has also emulated Buffett by lending money at lofty interest rates and securing equity warrants.
  • Visit Business Insider’s homepage for more stories.

Silver Lake pulled from Warren Buffett’s playbook when it injected cash into ailing companies during the coronavirus crash this year. The private-equity giant is emulating the famed investor once again with the launch of a 25-year investment strategy.

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Abu Dhabi’s sovereign-wealth fund, Mubadala, is acquiring a sub-5% stake in Silver Lake and contributing $2 billion to the new fund, The Wall Street Journal reported, citing people familiar with the matter.

Silver Lake, which manages more than $60 billion in total assets, has a quarter of a century to employ Mubadala’s cash and realize any gains — more than double the usual 10-year timeframe for private-equity funds, The Journal said.

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Buffett, the billionaire CEO of Berkshire Hathaway, has championed long-term investing for decades and held stocks such as Coca-Cola for more than 30 years. “Our favorite holding period is forever,” Buffett wrote in his 1988 shareholder letter.

Silver Lake hasn’t just adopted a Buffett-esque investment horizon, it has also taken up his mantle