Berkshire Hathaway Annual Meeting – 2016

I just finished the Berkshire Hathaway (BRK.B) annual meeting – what a fantastic marathon meeting from 9:30AM to 12:00PM, break for 1 hr, 1:00-3:30PM and final casting of shareholders votes at 4:15PM. Warren and Charlie were the usual self, entertaining themselves and of-course regaled the crowd of 17K or so in CenturyLink hall.

Many of the questions were the usual suspect about multi-faced businesses that they own, why he invest in Coca-Cola (KO) that is making people so called ‘obese’, whether IBM is still a good investment, how new Nebraska Furniture Mart in Dallas-Fortworth is doing, about Sequoia Fund in view of its Valeant (VRX) investment, BNSF, Insurance and General Re, and impact of global warming on their insurance business. Long time watchers of Berkshire Hathaway meeting almost know the expected answers from the Oracle of Omaha and Charlie, who is 92 yrs, and Warren being younger one at just 85 🙂 Warren joked that he would like to see his insurance business beat State Farms before he is 100. Charlie kept himself busy munching Sees-candies: Peanut Brittle and keeping his throat wet with soda.

There were many memorable moments in Q&A sessions at this Berkshire Hathaway meeting. However, there are few that stuck out and etched in my memory, not because of the answers, but, in-spite of the answer. Whenever Warren elaborated his answer, many times, he will ask Charlie to further explain or add his views, however, Charlie often did not take the bait and would crisply reply:

  • There is nothing to add to that!
  • My ignorance is more than yours. (my personal favorite 🙂  how about you?)
  • Warren, we do not need to answer that question.

There is lot to go through the meeting, however, below are some memorable quotes that applies to DGI investing that we all are so passionate about in our DGI community.

  1. EQ: We do not need to be smart to be good at investing, but need to have emotional stability.
  2. Temperament: We try to behave well in the business, rather than not. If used wisely, it can yield good results.
  3. Deal: You do not try to score all the points, but, as long as it looks good overall, it is a good deal. 
  4. My favorite employer is myself: I decided early in life.
  5. CNBC Risks: stand for Cyber, Nuclear, Biological, Chemical.

Warren took an aim at hedge funds and reminded about his $1 Million bet: any portfolio of hedge funds will under perform a passive S&P 500 index fund over 10 yrs. So far, he is winning the bet with 65.7% S&P 500 returns versus 21.9% HF returns. Warren did not hesitate to bash power point, even though Bill Gates was sitting right in the front rows! However, he got bashed in newspaper throwing contest by a small kid!!

Would love to hear from you and your experience.

Full Disclosure: Long on BRK.B, KO, IBM, except VRX.

What were the notable quotes and lessons you learnt in BRK meeting. Any other interesting anecdotes to share?

Recent Stock Purchase III – April 2016

I initiated positions in 5 new companies in third week of April. Also, I’d added positions in an ETF last month: S&P Metals and Mining (XME) as I do not own much of commodity or resources stocks and want to have some exposure to this beaten down sector. This sector looks quite promising and ready to take off in my opinion.

Below are the companies where I put my capital on towards my race for earning $3000 per month in 3000 days. Last month, I completed 330 days of my freedom race and it was nice to have crossed $800 in passive income for the first time. Without further ado:

1) AES Corp (AES): 25 positions at $11.27 on 4/20
2) Chatham Lodging Trust (CLDT): 25 positions at $21.66 on 4/18
3) EPR Properties (EPR): 5 positions at $64.63 on 4/22
4) Royal Bank of Canada (RY): 10 positions at $62.20 on 4/20
5) Wal-Mart Stores, Inc. (WMT) 5 positions at $69.33 on 4/21

Due to addition of new companies over last several months, total number increased by 11 in my portfolio. I’m watching following companies for adding positions in my portfolio, love to hear views of the DGI bloggers. If you like another company, please mention in below comments. Thank you for your opinions & suggestions, as they provide fodder for new ideas 🙂

1) Southern Co. (SO)
2) Realty Income, Corp. (O)
3) Consolidated Edison, Inc. (ED)

Full Disclosure: Long on above mentioned stocks.

Do you like or considering to buy above companies.

Recent Stock Purchase II – April 2016

I initiated positions in one new company: Crown Castle Intl. Corp (CCI) and added positions in W.P. Carey, Inc. (WPC) in second week of April. I’d initiated a position in an ETF last month: S&P Metals and Mining (XME) as I do not own much of commodity or resources stocks and want to have some exposure to this beaten down sector. This sector looks quite promising and ready to take off in my opinion.

Below are the companies where I put my capital on towards my race for earning $3000 per month in 3000 days. Last month, I completed 330 days of my freedom race and it was nice to have crossed $800 in passive income for the first time. Without further ado:

1) Crown Castle Intl. Corp (CCI): 5 positions at $88.02 on 4/13
2) W.P. Carey, Inc. (WPC): 10 positions at $61.01 on 4/12

Due to addition of new companies over last several months, total number increased by 6 in my portfolio. I’m watching following new companies for addition in my portfolio, love to hear views of the DGI bloggers and the one getting most votes get the honor of being part of my dividend engine. If you like another company, please mention in below comments. Thank you for the suggestions, I highly value each and every opinion of DGI bloggers and investors.

1) Johnson Controls, Inc. (JCI)
2) Mondelez Intl, Inc. (MDLZ)
3) Illinois Tools Works Inc. (ITW)
4) Royal Bank of Canada (RY)
5) Canadian National Rly Co. (CNI)

Full Disclosure: Long on above mentioned stocks except JCI, MDLZ, ITW, RY, CNI.

Do you like or considering to buy above companies.

Recent Stock Purchase I – April 2016

I added positions in 5 companies in first week of April. I’d initiated a position in an ETF last month: S&P Metals and Mining (XME) as I do not own much of commodity or resources stocks and want to have some exposure to this beaten down sector. This sector looks quite promising and ready to take off in my opinion.

Below are the companies where I put my capital on towards my race for earning $3000 per month in 3000 days. Last month, I completed 330 days of my freedom race and it was nice to have crossed $800 in passive income for the first time. Without further ado:

1) BCE Inc. (BCE): 10 positions at $45.01 on 4/07
2) HCP, Inc. (HCP): 10 positions at $32.77 on 4/04
3) Hospitality Properties Trust (HPT): 10 positions at $26.27 on 4/04
4) Verizon Communications (VZ): 10 positions at $53.55 on 4/06
5) STAG Industrial, Inc. (STAG): 25 positions at $19.95 on 4/05

Due to addition of new companies over last several weeks and a reduction in one company: Keurig Green Mountain Inc. (GMCR), total number increased by 5 in my portfolio.

I’m planning to add new companies over next few weeks in my portfolio, 5 added last week. I’ll put the names of the companies for all DGI bloggers to vote and the one getting most votes get the honor of being part of my dividend engine. If you like a company that you want included in coming contest, please mention in below comments. Thanks for your suggestions and I value the opinion of DGI bloggers and investors.

Full Disclosure: Long on above mentioned stocks except GMCR.

Do you like or considering to buy above companies.

Dividend Income Update – March 2016

I’ve completed 330 days of freedom race and it has been awesome with great support of DGI bloggers. I’m truly blessed to be posting it from a country where Statue of Liberty stands. It stands for freedom and I hope to achieve my own financial freedom in 3000 days when I complete my race.

Wow. I crossed another milestone figure of $800 in passive income, holy molly. I’m super excited to write about my passive dividend checks that I received in month of March. They are now pouring into my account without lifting a finger. So far, I’ve got 82 fantastic companies in my growing Portfolio

I hope that this passive income report provides inspiration to all the readers out there that even when you are starting out fresh, you can still do it. Although, it is a long race: slow and steady, we can win it on our terms and time. Without further ado, here are dividends received:

Archer Daniels Midland Co. (ADM): $12.00
Aflac Inc. (AFL): $4.10
Avista Corp. (AVA) : $10.28
Bank of America (BAC): $5.00
BHP Billiton ADR (BBL): $96.00
BP plc (BP): $90.00
ConocoPhillips (COP): $17.50
Chevron Corp. (CVX): $64.20
Digital Realty Trust, Inc. (DLR): $44.00
Consolidated Edison Inc. (ED): $13.40
Emerson Electric (EMR): $11.88
Gilead Sciences (GILD): $6.45
Johnson & Johnson (JNJ): $11.25
Lockheed Martin Corp. (LMT): $8.25
Main Street Capital Corp. (MAIN): $27.00
McDonald’s Corp. (MCD): $4.45
Microsoft Inc. (MSFT): $10.80
New Mountain Finance Corp. (NMFC): $51.00
National Oilwell Varco, Inc. (NOV): $23.00
Realty Income Corp. (O): $19.85
PepsiCo Inc. (PEP): $14.05
Pfizer Inc. (PFE): $12.00
Qualcom Inc. (QCOM): $4.80
Royal Dutch Shell, Inc. (RDS B): $141.00
Southern Company (SO): $37.97
STAG Industrials, Inc. (STAG): $11.58
Target Corp. (TGT): $5.60
United Tech. Corp (UTX): $6.40
Vector Group Ltd. (VGR): $20.00
Ventas Inc. (VTR): $62.05
Wells Fargo & Co. (WFC): $7.50
Exxon Mobil (XOM): $29.20

Total passive dividend income for March: $882.56. So far, I’ve received $2008.35 as passive dividend income.

Instead of getting a single salary once a month, I got paid by 32 fantastic companies throughout the month, simply by owning a tiny sliver of a slice. Imagine that there are thousands of people hired by those companies and that they are working for you, rather than, you working for them. This feeling of achieving financial freedom over 3000 days, is what drives me to keep racing and I’m sure readers alike!

Full Disclosure: Long on above mentioned stocks.

How did your passive dividend income come along in March?