These notes were taken live as GuruFocus covered the annual shareholder meeting of Berkshire Hathaway (BRK.A)(BRK.B) in Omaha on Saturday.
Question: Ackman questions the legitimacy of Herbalife (HLF). Berkshire Hathaway (BRK.A)(BRK.B) owns Pampered Chef. Has there been any impact on Pampered Chef? It�� a multi-level marketing company.
WB: I��e never looked at the 10K of Herbalife. The key is whether it�� based on selling profits. Pampered Chef is miles away from selling to level A and level B. People get paid based on who they recruit. But people are based on selling to end user. There are thousands of parties a week selling to people who want to use the products. And that should be the distinguishing characteristic.
Charlie: And there�� likely more flim flam in selling magic potions than pots and pans.
Question: Berkshire�� returns in the last 10 years are based on repeating and extensive deals than in the past when you were a value investor doing extensive analysis. How will your successor achieve the same returns?
Top Construction Material Stocks To Watch For 2015: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Dan Moskowitz]
The shiniest dollar
Many investors and analysts like to debate which dollar store offers the best investment opportunity. The truth is that Dollar General, Dollar Tree Stores (NASDAQ: DLTR ) , and Family Dollar Stores (NYSE: FDO ) are all likely to be quality long-term investments. - [By Paul Ausick]
The other stock the firm likes is Dollar Tree Inc. (NASDAQ: DLTR). The company�� shares have lost about 4.6% since reporting an earnings per share (EPS) miss for the third quarter and the Sterne Agee analysts see the lower price as a ��reat entry point��for buying the stock. Dollar Tree raised fiscal year 2013 EPS guidance from a range of $2.66 to $2.77 to a new range of $2.72 to $2.78, effectively raising the mid-point by $0.04. Sterne Agee reiterated its Buy rating on the stock with a price target of $63. Dollar Tree�� shares are trading down nearly 0.4% at $55.99 in a 52-week range of $37.47 to $60.19.
- [By Steven Russolillo]
WATCH FOR:�Weekly Jobless Claims (8:30 a.m. Eastern Time): seen 310K; previously 297K. May Markit “Flash” PMI (9:45). April Existing Home Sales (10:00): seen +2.0% at 2.68M; previously -0.2% at 4.59M. April Leading Index (10:00): seen +0.5%; previously +0.8%. May Kansas City Fed Manufacturing Survey (11:00): seen 8; previously 7. Aeropostale, Best Buy(BBY), Borcade, Buckle, Dollar Tree(DLTR), GameStop(GME), Gap(GPS), Hewlett-Packard(HPQ), Marvell Tech(MRVL), Mentor Graphics(MENT), Ross Stores(ROST) and TiVo are among companies scheduled to report quarterly results.
Best Value Stocks To Own For 2014: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Eric Volkman]
Caterpillar (NYSE: CAT ) has increased its common stock dividend to $0.60 per share, the company announced Wednesday, to be paid Aug. 20 to shareholders of record as of July 22.
- [By Dan Dzombak]
Today's Dow leader is Caterpillar (NYSE: CAT ) , up 3% on no real news. Caterpillar is on the five most shorted stocks on the Dow with 3% of its shares outstanding sold short. As the mining industry around the world starts to be challenged by falling commodity prices, Caterpillar's business will not be as robust going forward. It's this worry that Caterpillar will get hurt by the boom-bust cycle of commodities that has investors pricing the shares at just 11 times earnings. That said, some investors still think Caterpillar is worth buying. Fool contributor Daniel Ferry recently laid out three reasons to buy Caterpillar.
- [By Ben Levisohn]
The dirt kept sliding out from under Caterpillar (CAT) during 2013. Will it hit bottom in 2014?
ASSOCIATED PRESSUBS analyst Steven Fisher and team think it can. He writes:
2013 was a disappointing year for [Caterpillar] across its businesses (ex-LATAM construction). The mining business, in particular, drove several guidance reductions. We expect�[Caterpillar] EPS to find a bottom and potentially turn positive over the next 12-24 months as global growth improves, led by North America. We also expect cost reductions and buybacks to be tailwinds…
Still, Fisher urges investors to be cautious with Caterpillar right now. He writes:
Our mind set is that it may be beneficial to be early in order to get ahead of the improvement in earnings, after the stock was a laggard in 2013. However, we think there is some risk that [Caterpillar] guides below the Street with the Q4 report, and some of the�[Caterpillar] indicators we assess suggest caution near term. Specifically, UBS expects oil prices to be weaker in 1H14, we expect�[Caterpillar] revenues and earnings to decline YOY in Q4 and Q1, and UBS expects the Yen to weaken vs. the US Dollar; all drivers of�[Caterpillar] stock performance. Also, we don’t see major near term catalysts in mining and power.
Given Fisher’s mixed message, it shouldn’t come s a surprise that Caterpillar is little changed today at $90.52, even as Terex (TEX) has fallen 0.8% to $41.03 and Joy Global (JOY) has dropped 1.1% to $55.19. Deere has (DE) gained 0.4% to $90.10.
- [By Editor , ETFChannel.com]
A study of analyst recommendations at the major brokerages shows that Caterpillar (CAT)� is the #23 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Within the broader S&P 500, when components were ranked in terms of analyst favorites, CAT claims the #309 spot.
Best Value Stocks To Own For 2014: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By David Smith]
A few of the compelling companies
From my perspective, the message to be taken away from Stuart's presentation is simply that, even in the face of potential U.S. economic distress, a well-structured portfolio will contain at least a modicum of energy of names. For starters I'd look to Schlumberger (NYSE: SLB ) , the world's leading oilfield services company and energy's technology major domo. Given its operations in about 85 countries, a worldwide energy cataclysm would seemingly be required for the big company to face a significant slowdown.
Best Value Stocks To Own For 2014: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Oliver Pursche]
European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.
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