Mortgage Blog

My Investment for the Year 2012 -- Part 4 -- Stocks

December 31st, 2012 10:15 PM by Eric Fang

It has been a great year on stocks for
most investors. S&P 500 was up 16%.
And I beat it this year by quite
good margin.

The returns was good just because I invested
heavily on financial stocks, and builder stocks.
The most important changes for this year was that
they also paid dividends.

We went to San Francisco Union Square today.
And I read Warren Buffet's 2011 Letters to the
shareholders. I know a lot of people wants to copy
his style, but It's almost impossible:
1)He made most of the money from the (re)-insurance
companies he owned. He used those free "floats" to
make extra moneys on the investent returns.

2)His main strategy was to purchase the companies
with great value, and then generate more revenues
under his management.

3)His investment on the individual stocks was
77B/48B(since the purchase). Still very impressive,
plus the dividends he collected over the past years.

4)About Gold and other investment. Here is the paragraph
from his 2011 Letter to shareholders:
He prefers the investment in productive assets, whether
businesses, farms, or real estate. Ideally, these assets
should have the ability in inflationary times to deliver
utput that will retain its purchasing-power value while
requiring a minimum of new capital investment(see page
18 of 21)

Posted in:General
Posted by Eric Fang on December 31st, 2012 10:15 PM



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