Tags: Tilson | Buffett

Whitney Tilson: Buffett Still Has the Magic Touch

Thursday, 01 Dec 2011 01:25 PM

By Dan Weil

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
When Berkshire Hathaway shares hit a 20-month low in September, some investors speculated that the magic is gone for the firm’s legendary CEO Warren Buffett.

Not so fast, says Whitney Tilson, long-time Buffett watcher and founder of money management firm T2 Partners. Berkshire Hathaway represents the biggest position for the firm’s funds.

“One of the greatest risk factors is that Buffett suddenly starts losing it and destroying value by allocating capital poorly,” Tilson tells Steve Forbes, chairman of Forbes Media.
________________________________________________________

Sick and Tired of Playing Retirement Roulette?

Fleeced by uncontrollable inflation, taxes, and dire unemployment, millions are being forced to dangerously gamble their life savings in the . . . Learn More About How You Can Protect Your Life Savings, Click Here.

________________________________________________________

“So we watch him very closely. And so far anyway, it’s remarkable. I’m not sure I’ve ever seen an 81-year-old person as nimble and spry mentally. And he’s seemingly getting better with age.”

Tilson is impressed with Buffett’s willingness to venture abroad to invest in PetroChina, for example, earning a 700 percent gain.

buffettgetty200v2.jpg
Warren Buffett
(Getty Images photo)
Buffett showed flexibility in purchasing Burlington Northern, after viewing the railroad industry as a loser for 50 years, Tilson says.

And Buffett’s latest big move, a $10.7 billion investment in IBM, makes sense too. “He’s looking for things that he can buy and hold for decades,” Tilson says. And Big Blue fits that bill.

Tilson thinks Berkshire stock is 35 percent undervalued.

Hedge fund manager Doug Kass, a huge Buffett fan over the years, is less impressed and recently sold his shares.

The IBM investment indicates “more ordinary and plain vanilla investments will be the feature of Berkshire's portfolio strategy in the future,” he writes on Real Money Pro.

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved