STE's Stocks Investing Journey

Just to share some interesting quotes /wisdom from Howard Marks latest memo as below:  " Buy, sell or hold?   I think it’s okay to do some buying because things are cheaper.   But there’s no logical argument for spending all your cash, given that we have no idea how negative future events will be.  What I would do is figure out how much you’ll want to have invested by the time the bottom is reached – whenever that is – and spend part of it today.   Stocks may turn around and head north, and you’ll be glad you bought some.  Or they may continue down, in which case you’ll have money left (and hopefully the nerve) to buy more.  That’s life for people who accept that they don’t know what the future holds."

image credit to cnbc.com Is it possible to Mimic Warren Buffett's Investment Returns? Every investment manager (or even retail investors like you and me) admires Warren Buffett’s investment returns. But i s it possible to copy Warren Buffett's investment strategy?   W hile most of us desire Buffett’s results and try to mimic his investment approach by reading books written about him and attending courses that try to emulate his strategies. Can we really mimic his investment returns?  The answer is of course  NO.

image credit to dreamstime.com In my last blog post, I talked about “The Power of Free Cash Flow” , the importance of having consistent and sustainable free cash flow for companies which would allow them to pay a dividend or buying back their own shares. Imagine if there is a company that could generate $68 MIL a day , do you think such company exist in world stock market ? Yes!  It's  Berkshire Hathaway (BRK )  and it was sitting on a massive cash pile at the end of 2018 and the cash continues to increase quarter by quarter in billions of dollar.  BRK is sitting with a gigantic cash amount of USD 114 Billion as of 1 st Quarter 2019. For the past 3 years, Berkshire was able to generate Free Cash Flow of USD 25.5 Bil /year (on average) and this will translate to about USD 69.8 Million / Day.