I don't talk about stocks too much on here, but I thought I'd follow up on Operation Copy Buffett. If you were around back then, you'll remember I wanted to invest in stocks but I hadn't a clue where to start (and I wasn't going to randomly choose for the hell of it like previous times).

So instead, I decided to check out all of Warren Buffett's choices and cherry pick from there :) Some people thought I was an idiot, and others thought it was a great idea. After all, if you're going to copy someone, why not Buffett right? Well, just like I reported in the past, I couldn't be happier with the choices I/he's made. Here's a breakdown of all the stocks I currently own - tucked away in my Brokerage Roth IRA:


[the italicized purchase prices are averages over multiple buys]

What more could a guy ask for? Granted the recent explosion of the market has done wonders to everyone's portfolios (thank goodness cuz we needed that!), but I'd like to think these picks are in it for the long haul. Oh, and in case you're wondering, yes I did throw in some picks of my own including GE & SIRI :) I can't let him do ALL the work, right? haha...I'll continue to play a little myself, but for the most part I don't plan on risking a whole lot.

The majority of my retirement funds come straight from my 401(k) - these stocks are just supplemental to add a little more fun into the game. If I lost 100% of them, it wouldn't affect the overall game plan. It would SUCK BALLS (and the world would probably be ending if those companies all went under) but it's a small % of my overall retirement monies. I just need more action than my mutual funds can provide...

My portfolio is far from being perfect, or stable, (always best to consult with a professional - don't just do what I do!) but I thought I'd share as it's always cool to hear how others are trying to reach their goals as well. With everything in finance, it comes down to personal preference and game plans. Are you guys rockin' out anything good?

Labels: investing, roth ira, stock market, Warren Buffett

Because when it comes to investing, Warren Buffett's the freakin' man! Why start from scratch analyzing and trying to pick the very best stocks out there when I know absolutely *nothing* about the industry?

Don't get me wrong, I'll still be doing my best to learn and see why, exactly, he picks what he picks, but when it comes down to it I trust his opinions over anyone else's out there - obviously including my own ;) After all, it was Buffett himself who said he doesn't invest in anything he's not familiar with! And since I'm not familiar yet, I shall copy him :) haha...

Actually, I should say I'll be copying his stock choices minus some financial ones that have been causing him trouble lately. I wish I could remember which personal finance mag I got this idea from [got it: May,09 ed. SmartMoney - "Buffett, Half Off" by Jack Hough], but either way it's genius. Especially while everything's so freaking LOW! We'll never be able to compete w/ Warren in getting the absolute *best* rates of going stocks, but while things are 1/2 off right now we can get damn close. In fact, I'd venture to say that now is the only time we can beat him if we pick up the same ones he did last year when they were much higher!

Okay, so now that you know what i'm up to over here, WHICH stocks do I plan on getting? Well, I've already picked up 3 of the 6 recommended by that same pf mag that I can't recall, and all 6 are owned by his Berkshire Hathaway company. In an effort to keep things simple for me, and not go TOO overboard, I've decided to invest $500 in each stock over time:



So far so good! Another way to "be like him" would be to just invest in one of his Berkshire funds, but considering one goes for $92,000+, and the other for $3,000+, I figured this is the better way to go ;) Again, mainly because how cheap they are at the moment.

And if you missed it, these new friends of mine will be living in my Brokerage Roth IRA. I'll continue to max out my 401(k) every year with a handful of diversified mutual funds and all, but this is my "play account". Even IF it's a bit excessive - I'd much rather spend my extra money investing & learning a bit over material stuff I don't need at all.

I don't recommend this game plan for everyone, but for me it's on like Donkey Kong!

Labels: investing, retirement, stock market, Warren Buffett

As we all have come to know, Warren Buffett is a P.I.M.P. He can out-invest you, out-donate you, and even out-school you any day of the week. But *why* is that?

Does he drink a fancy potion every morning at 5a.m.? Is he related to both Chuck Norris AND Jack Bauer? Unfortunately I don't know. But what I DO know is that he lives a simple life, with some pretty simple rules.

I base this conclusion on an email forwarded by none other than the guy who inspired the Wal-Mart is huge as my Johnson post - my dad. Amongst the old-man jokes and viral beer commercials, he does tend to slip in a few nuggets of info. every now and then (probably to see if i'm paying attention). So today's post is based off a powerpoint slide he sent over that was "supposedly" inspired from a one hour interview by CNBC. My google skills couldn't find this alleged interview, but it really doesn't matter anyways as it's the lessons here that are really important. You can check out the pretty pictures & slideshow here, or just read the stripped down points here:

1. He bought his 1st share at age 11, and he regrets he started too late!
2. He bought a small farm at age 14 with savings from delivering newspapers.
3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
4. He drives his own car everywhere and does not have a driver or security people around him.
5. He initially resisted traveling by private jet, although he owns the world's largest private jet company.
6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.
7. He has given the CEOs only two rules: #1 - Do not lose any of your shareholders' money. #2 - Do not forget rule #1. (rule #3: fight club is Awesome!)
8. He does not socialize with the high society crowd. His past time after he gets home is to make himself some popcorn and watch tv.
9. Warren Buffett does not carry a cell phone, nor has a computer on his desk. (WHAT? crazy!)
10. Warren initially didn't think he had anything in common w/ Bill Gates. He scheduled his first meeting with him for only half an hour, but when they met, the meeting lasted for 10 hours!
11. His advice to young people: "Stay away from credit cards & bank loans, and invest in yourself." He also had the following to add:
    a) Money doesn't create man, but it is the man who created money
    b) Live your life as simply as possible.
    c) Don't do what others say - listen to them, but do what you feel good doing.
    d) Don't follow brand names; just wear those things in which you feel comfortable.
    e) Don't waste your money on unnecessary things; just spend on those things you really need.

Again, the point isn't whether all this is 100% fact (you can read his profile on wikipedia), but that you can become wealthy if you follow some pretty simple rules! Live below your means, invest early, don't listen to everyone all the time, don't go in debt, and don't blow your money on fancy-pants stuff (or on fancy pants).

If you can master just a few of these you'll be a LOT better off financially.For me, I've been trying to do the "live below your means" one and so far so good. In fact, I'm pretty sure I have some friends who think I make minimum wage ;) But that's okay! All that matters is how I feel about it, and what I want out of life (Mrs. Budgetsaresexy included, ofcourse). It's not always gonna be easy, but I guarantee you it'll always be financially sexy!

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Here's another cool Bio on Mr. Buffett by WideOpenWallet.com

Labels: advice, awesomely awesome, financial forwards, money management, Warren Buffett