Warren buffet- Investor or venture capitalist?

sh50 · #1 25th March 2005, 09:24 PM

Extracts from "Random walk guide to investing" :-

"Warren buffet has taken an active role in the businesses in which he has invested. One of His earliest investments was in the Washington post company. According to Katherine Graham, the papers chief executive, buffet played the critical role in saving the paper from financial disaster and turning the stock into a profitable investment. So it was in many of Birkshire heathaway’s most successful investments. When an error was made in the case of buffett’s investment in the case of Soloman brothers, buffet himself became the firm’s leader to save it from liquidation". Buffet seems to have followed the Index fund principle "Rather than futilely attempting to find that needle in the haystack, buy the haystack instead."

Till date, nobody has been able to figure out how buffet calcualtes the intrinsic value of a share-no wonder.

prem_gkp · #2 21st April 2005, 03:13 AM

hi sh50..
i m not agree with u..it is true tht he takes interest in the business of companies where he invest..and looks like venture capitalist but at the same time he is not risky investor .he always try to go in funadamental of companies wherever he is willing to invest n i dono think that this makes him venture capitalist. coz venture capitalist genarally invest in risky business n support small sector industries in order to help them. i have read that warren buffett do not invest in technological share coz he don't see any staility there....
but may be this is my opinion..and i m new in this field n i m student so don't have any exp.
i hoping n waiting 4 ur rply wat u think now

sh50 · #3 21st April 2005, 08:51 AM

Venture capitalist may not be the right word . What I meant was that if you can directly inlfuence the management of companies in decision making, you cannot be deemed an investor the way we understand it.

prem_gkp · #4 14th June 2005, 11:14 PM

ya i agree with u tht this is not the right word.. but whatever it is he is ultimately the greatest investor of this world

trader9 · #5 15th June 2005, 11:02 AM

Quote:

Originally Posted by sh50

Venture capitalist may not be the right word . What I meant was that if you can directly inlfuence the management of companies in decision making, you cannot be deemed an investor the way we understand it.

"An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return."

-- The Intelligent Investor
Benjamin Graham (teacher and mentor to Warren Buffet)

Therefore as per the above definition an investor is any person who puts in money in any instrument, security where he sees a fair and reasonable return and safety of his prinicpal. Just beause his investment is huge as to give him influence over certain decisions of the management of the companies in which he invests, does not make him anyone other than an investor.
Of course if his motive for investing such a sum of money is to buy a controlling stake so that the decison making powers transfer to him then that makes him the owner/promoter.

Regards!

dilip2k · #6 15th June 2005, 08:35 PM

Hi,
Its not important how you classify Buffet. Its what you can learn from him

He has made an extraordinary fortune , based on some very common sense principles. So, for all those addicted to day-trading, swing trading etc

its unlikely you will come close to buffet

. Sorry but that's the truth!
So learn from the master and respect your money and time.

regards

Dilip

prem_gkp · #7 15th June 2005, 11:08 PM

ya i m agree that we should learn from him give respect to the greatest investor..but at the same time as a student i want to no difference bt/wn investor n venture capitalist..i think everyone shoul understand it....coz these are the fundamental of investing n warren buffett always believe in fundamental of investing.....so i hope i get some good suggesions..

sh50 · #8 16th June 2005, 06:34 AM

One could sum it up by saying that he followed investment strategies in a venture capitlist style.

shorttermer · #9 21st June 2005, 12:24 PM

How about Takeover King?

True, he looks at fundamentals, but it also to assess when he owns a major part of the company how he can turn it around or use it for his benifit. He uses a great amalgamation of both concepts - Investing on pure fundamentals and Buying into a Company to be a Part Owner so that he can be a Partner in the business as well, thereby controlling the running of the company.

shorttermer

neo1599 · #10 25th June 2007, 07:34 AM

Hello,

Believe in yourself and let all your emotions drain out when trading analyse till the time that you 'know' and not 'believe' that the investment opportunity is good and one day 'the greatest investor' might come to ask your advice.

Neo