INVESTOR IN THE FAMILY Radio

Welcome to Episode 3 of the "Becoming Buffett" Series!

This week we discuss the 1967 letter to Berkshire Hathaway shareholders.

Buffett's annual letters book: http://amzn.to/2ogVi4U

Some brief notes:

"Our goal is to obtain a reasonably stable and substantial level of earning power commensurate with the capital employed in the business."

• Negative: Sales were down, sharp drop in prices, sales and profits down substantially, depressed conditions in textile markets, curtailed production 15%
• Positive: one sector doing well due to "attempting to establish product lines away from areas of direct competition"
• P8, para1: spending money internally for the purpose of future increased cash flows
• P8, para4: conducted research and made tough decision to close a quality plant that had lack of demand for product
• • What are we a slave to financially? Your job?
  • What do you need to cut and stop throwing money into?
• P8, para7: broader investment philosophy (insurance companies)
• • You can have time as an investor if you are focused on the long-term
  • This was BH's first move toward diversification: textiles and insurance
  • This was a slow process, could you research and add one company per year to your BH?
  • As you acquire more capital, where will you allocate it?
• P9, para2: mgmt continues to be alert to new opportunities for capital allocation
• • They were poor investors from 1956-66 (pre-Buffett), had basically no ROI on invested capital for 10 year period
  • Can you relate to that?
  • Acknowledged the reality and are learning from it.
  • Keeping liquid money in stocks as they wait for the right capital allocation/investment opportunity
  • Will not hesitate to borrow money to take advantage of attractive opportunities

http://investorinthefamily.com/

Welcome to Episode 2 of the "Becoming Buffett" Series!

This week we discuss the 1966 letter to Berkshire Hathaway shareholders.

Buffett's annual letters book: http://amzn.to/2ogVi4U

Some brief notes:

1966

"It has always been among the goals of BH to maintain a strong financial position."

• Remember, we are business owners.
• The management of our family's finances and investment is a business.
• We must not make the mistake of degrading our situation with false mindsets that lead us to any other thinking.
• The term "personal finance" seems almost inane (boring and worthy to be ignored), but the term "corporate finance" has the air of grandeur.
• We cannot make that mistake.
• The management of our personal finances is a business endeavor that must be taken seriously
• In Buffett's 1966 letter (not signed by Buffett) we see why.
• This is the letter that plants the seeds for the birth of BH as we now know it
• The meat of the letter is the company's intentions to have a strong financial position and be poised to act when acquisition opportunities arise
• Is the same true for YOU and ME?
• Another point I want to make is the chart I mentioned last week showing the companies that BH has acquired since 1965.
• I count 59 companies over 50 years.
• How does that compare to your portfolio?
• Why don't we buy like this?
• The Entrepreneur to Mutual Fund of Mutual Funds continuum
• The less info we have, the more diversified we should be
• Knowledge/understanding = conviction = concentration of assets

http://investorinthefamily.com/

This week we launch our new series "Building Berkshire."

It's time we all make a mindset shift in how we view our investing.

Buffett's annual letters book: http://amzn.to/2ogVi4U

http://investorinthefamily.com/

Biotech update from Bret Jensen.

http://investorinthefamily.com/

• Outperforming market in 2017 after 18 month bear
• Big uptick in M&A in Jan
• • 3 big deals
• Feb and Mar have been fairly flat
• Lots of resistance technically
• • Need an uptick in MA or earnings to break through
  • Expect the uptick to happen in MA
• Watch Trump's actions and not words
• • Has appointed 2 free market minded people (FDA,
  • Proposed to double fees for drug approval
  • Watching repeal and replace of ACA
  • • Needs to happen before tax and regulatory reform
    • Expect the repeal to happen by April or May
• Ocular Therapeutix (OCUL)
• • Trigger event in July, new product for cataract surgery
  • Insider buying
• Omerisk (OMER)
• • OMS721
  • Priced at just over $10 w PTs in the $30
  • Next trigger event in few years

I lay out my plan for the next phase of Investor in the Family.

This is possibly the most excited I've been about a project since starting the company, listen in to find out what's up.

http://investorinthefamily.com/

The biggest news and updates from the investing world over the past week, plus some potential big next steps for Investor in the Family Radio.

http://investorinthefamily.com/

An update on the biggest, most relevant investing and economic news for the week of March 6, 2017.

http://investorinthefamily.com/

A run down of major investing and economic news for the week of February 6, 2017.

http://investorinthefamily.com/

http://diyinvestingsummit2017.com/

Chuck Carnevale is one of 25 Seeking Alpha Contributors participating in the 2017 DIY Investing Summit. In the summit, one of the questions I asked Chuck was why he thinks so many DIY investors struggle and what they can do about it. Below is an excerpt from the interview and a summary of his response.

*Chuck's full interview is available for free today.

Chuck's advice on how to avoid investing struggles and failures...

• A portfolio is like a bar of soap, the more you handle it the smaller it gets.
• Have the mindset as becoming a shareholder/partner in the business.
• Doesn't judge an investment sooner than 3-5 years.
• Great investments take decades.
• More...

This is just a small excerpt of what's covered in the interview.

The interview is full of detailed tips on Chuck's core investment strategies, top advice for DIY investors, and specific ways he's positioning for 2017.

Enjoy the full interview with Chuck and other top investors on Seeking Alpha. Registration for the summit is now open and free for a limited time.

Don't like audio/video interviews?

If you prefer to read content as opposed to watch and listen, detailed summary sheets have been created for every interview as an optional add-on.

Full list of summit contributors:

Chris DeMuth, Bret Jensen, Rida Morwa, Brad Thomas, Eric Parnell, Ian Bezek, Richard Lejeune, Richard Berger, Aurelien Windenberger, Doug Eberhardt, Dividend Sensei, Ralph Baker, Lawrence Fuller, Double Dividend Stocks, Mark Bern, Mark Hibben, Dividend House, J Mintzmyer, William Koldus, Damon Verial, Avi Gilburt, Shailesh Kumar, Chuck Carnevale, Adam Aloisi, and Colorado Wealth Management

Join Chuck at the DIY Investor Summit (free for a limited time) where he shares detailed tips on his core investment strategies, top advice for DIY investors, and specific ways he's positioning for 2017.

Companies mentioned in Chuck's interview: BlackBerry (NASDAQ:BBRY), Aflac (NYSE:AFL), Microsoft (NASDAQ:MSFT), Lockheed Martin (NYSE:LMT), Church & Dwight (NYSE:CHD), AbbVie (NYSE:ABBV), Cardinal Health (NYSE:CAH), Target (NYSE:TGT), AT&T (NYSE:T), Medtronic (NYSE:MDT), PPG Industries (NYSE:PPG), Franklin Resources (NYSE:BEN), T. Rowe Price (NASDAQ:TROW), S&P 500 (NYSEARCA:SPY)

Additional Disclosure: This article is for information purposes only. There are risks involved with investing including loss of principal. Brian and Investor in the Family make no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made. There is no guarantee that the goals of the strategies discussed by Brian and Investor in the Family will be met.

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Brad Thomas is one of 25 Seeking Alpha Contributors participating in the 2017 DIY Investing Summit. In the summit, two of the questions I asked Brad about was his biggest investing victory of 2016 and what his "State of the Markets" address would be going into 2017. Below is an excerpt from the interview and a summary of his response.

*Brad's full interview is available for free today.

Brad's biggest victory and "State of the Markets"...

• CorEnergy (CORR) is a small-cap, energy focused REIT that was trading at a large discount. Resulted in an ~160% return.
• Home runs are great, but prefers to hit singles and doubles. Real estate is a long-term investment.
• Owns real estate for the predictable income and modest price appreciation.
• Believes Trump will have a big impact on real estate in U.S.
• Trump will extend the life cycle for U.S. real estate for 5+ years.
• More...

This is just a small excerpt of what's covered in the interview.

The interview is full of detailed tips on Brad's core investment strategies, top advice for DIY investors, and specific ways he's positioning for 2017.

Enjoy the full interview with Brad and other top investors on Seeking Alpha. Registration for the summit is now open and free for a limited time.

Don't like audio/video interviews?

If you prefer to read content as opposed to watch and listen, detailed summary sheets have been created for every interview as an optional add-on.

Full list of summit contributors:

Chris DeMuth, Bret Jensen, Rida Morwa, Brad Thomas, Eric Parnell, Ian Bezek, Richard Lejeune, Richard Berger, Aurelien Windenberger, Doug Eberhardt, Dividend Sensei, Ralph Baker, Lawrence Fuller, Double Dividend Stocks, Mark Bern, Mark Hibben, Dividend House, J Mintzmyer, William Koldus, Damon Verial, Avi Gilburt, Shailesh Kumar, Chuck Carnevale, Adam Aloisi, and Colorado Wealth Management

Join Brad at the DIY Investor Summit (free for a limited time) where he shares detailed tips on his core investment strategies, top advice for DIY investors, and specific ways he's positioning for 2017.

Additional Disclosure: This article is for information purposes only. There are risks involved with investing including loss of principal. Brian and Investor in the Family make no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made. There is no guarantee that the goals of the strategies discussed by Brian and Investor in the Family will be met.