Warren Buffett: The Year in Review

This year is going to end up - how about your return in this year?

Let's see the Year Review of Warren Buffet.

This year was busy for billionaire investor Warren Buffett.

Getty Images Warren Buffett

Here are a few of the most closely followed, Buffett-related topics that have been in focus over the past 12 months.

Acquisitions

At the start of the year, in his annual letter toBerkshire Hathaway shareholders, Warren Buffett took time to focus on the company's future acquisition prospects. Likening his firm's massive cash pile to a loaded elephant gun, the investor spent the past year on the prowl, searching for attractive opportunities around the globe.

Overall, Buffett's safari appeared successful. Some of his recent trophies, however, have come as a big surprise.

Although it was refreshing for investors anxious to see some Berkshire [BRK.A 116530.00    1280.00  (+1.11%)   ] cash come off the sidelines, Buffett's first big ticket purchase of the year was not overly surprising.

Valued at $9 billion, chemical maker, Lubrizol makes for a strong compliment to the current Berkshire Hathaway portfolio. The firm is responsible for products used extensively across a number of sectors in which the investor has traditionally shown interest.

Following the Lubrizol purchase it was also announced that Berkshire Hathaway would buy up the remaining shares of Wesco Financial. Prior to this deal, Wesco and Berkshire had already enjoyed strong ties; the California-based firm is chaired by Buffett's second-in-command, Charlie Munger.

During the latter half of the year, however, Buffett's buying habits got more interesting.

Marking a dramatic shift from his previous investing habits, Buffett followers learned that the famous technophobe had purchased a more-than $10 billion stake in International Business Machines.

IBM [IBM  184.75    2.71  (+1.49%)   ] was just one of the companies the investor took interest in during his staggering third quarter buying frenzy, however.

Analysts note that during the three month period ending Sept. 30, the renowned investor put nearly $24 billion to work. This was his largest quarterly cash expenditure in 15 years.

With his most recent decisions to purchase the Omaha World-Herald newspaper, and increase his exposure to solar energy, it is clear that Buffett is not ready to hang up his firearm just yet.

Surprises

A handful of other, more unconventional business decisions helped keep Warren Buffett in the spotlight throughout the year.

In August, Buffett stepped in to provide struggling Bank of America with a $5 billion cash injection.

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Another lovely snow surprise from YouTube

Are you still impressed with the Google's "let it snow" a few days ago? Today, YouTube also has some special for you like Google did it. ....... SNOW SNOW SNOW

When you go to the YouTube's player, you will see a new button, snow icon, in the progress bar menu. And while you're watching your video, if you press that snowflake button, you'll see snow animation in your video.

Wow, that's a lovely snow. You can also use your mouse to play with the snowflake.

Thank you YouTube for lovely surprise snow. Merry X Mas.

Bernanke Prods Savers to Become Consumers - Bloomberg

What's the direction for our world economy? Bernanke has made some decision ....

Federal Reserve Chairman Ben S. Bernanke finally may be catching a break: His easy-money policies are showing signs of speeding up the economic rebound three years after he cut interest rates to zero.

Housing may be nearing a bottom as record-low mortgage rates tempt more buyers into the market and confidence among homebuilders climbs to the highest since May 2010. Autos, another part of the economy sensitive to interest rates, are reviving, with carmakers reporting in November their highest sales pace in more than two years.

Banks also are starting to put more of their money to work, expanding commercial and industrial loans last quarter by the most since Lehman Brothers Holdings Inc. went bankrupt in September 2008.

“When the Fed sprinkles happy dust on the economy, we always respond,” said Allen Sinai, co-founder and chief global economist and strategist at Decision Economics in New York. “The happy dust has been out there a long, long time, and I think it finally may be settling in some places.”

Since the recovery began in June 2009, households have focused on saving rather than spending, while banks have concentrated on rebuilding capital instead of lending. That may be changing, as both have made progress in rebuilding their balance sheets, Sinai said.

He sees growth accelerating in the range of 2.5 percent to 2.75 percent next year from 1.5 percent to 2 percent this year, when the economy was hit by what Bernanke called “some elements of bad luck” in a Nov. 2 news conference. These include a run- up in oil prices caused by the Arab spring and a sell-off (SPX) in the stock market triggered by Europe’s debt crisis.

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Tax Planning

End of year coming, everyone may thinking about the gift and new year celebrating .... Please give some attention to another end-of-year ritual: tax-planning also.

For the thrifty and the wise, December can be as important a month for taxes as April. That's because December is the last chance to take advantage of money-saving steps before the tax and calendar years end. For investors, its doubly important.

Taxes may be inevitable, but they have certainly not been predictable in the last year or two, and 2012 looks likely to bring more of the same. Key tax provisions are set to expire (again), providing significant changes from income brackets, to stock dividends, to inheritance.

Tax policy also happens to be a major area of disagreement in Washington at a time when leaders are not only trying to address a gaping hole in the government's balance sheet, but also positioning their parties for an election that decides the presidency and perhaps the Senate majority.

Thanks the article from http://www.cnbc.com and image from  http://www.wellmantax.com

CHRISTMAS SNOW SURPRISE FROM GOOGLE

SNOW SURPRISE !!!!

Google gives us another surprise in this Christmas. That's the snow flake celebrating for this winter. To see this lovely surprise from Google, just type "let it snow" on the Google search textbox and ..... just waiting.

About a minuter, your browser will be fill up with the Google snow. You can skate on your browser with your mouse. Your browser acts like a frozen lake, showing the path your pointer has taken.

And if your want to go back to normal, just simply click the button "defrost" and then you'll see a clear screen.

Thanks the surprise trick from http://mashable.com/2011/12/17/type-let-it-snow-on-google/

Merry X'mas :D

S&P 1400 ... Is it possible?

WOW!! Have you imagined that S&P 500 will go to 1400 in next coming year? Is it possible? Let's see comment from Jennifer Leigh Parker, the CNBC writer ....



At these levels, equities have nowhere to go but up in 2012, says Alec Young, S&P global equity strategist.

"We're looking for 1400 on the S&P 500. It would be higher were it not for continued tail risk from Europe, but we're fairly upbeat on next year," says Young.

Considering the S&P 500 index on Friday is hovering around $1219, consistent bullish factors will need to kick in next year to prove Young right. 

Young's views run contrary to that of Bank of America, which predicted in a report released Thursday that the market will go into deceleration by the end of 2012, due to fiscal tightening and "considerable uncertainty around policy after the election."

Young says these drags on the economy are already priced into the market, and that even 2 percent GDP growth will be enough to see growth in equities.

"As an expansion slows, its normal for earnings growth to slow. The street's predicting about 8 percent on earnings. The key is, will we get that growth? I think we will," he said.

Young's comments come on a slightly positive day for stocks, but with low volume and just 42 percent of S&P 500 companies trading above their 50-day moving averages. While this generated skepticism on Wall Street, Young did not backpedal.

"The US market wants to go higher, and when Europe isn't in our face, we don't seem to have any problem doing that," added Young.

As for positioning in 2012, Youngs says stick with US, large-cap, dividend paying stocks, "just because of the lack of the attractiveness in the alternatives, in Treasurys and cash." 

Credit: http://www.cnbc.com

Christmas Eve

Christmas Eve, which is anually on December 24, is the day before Christmas Day. It is traditionally the day for decorating churches and homes. And also a time for people to buy presents and visit friends or relatives. It marks the beginning of the period formally known as Christmas-tide.

Since Christmas Eve is not an official holiday, most people have to work. However, many workplaces hold Christmas parties or celebrations, so there is a celebratory air to the day. People who work in the retail or catering sectors often have to work very hard to meet consumer demands on December 24.

Many people in the United States decorate their homes and driveways with seasonal decorations, although some do this much earlier, starting just after Thanksgiving Day in late November. The centerpiece of the decorations is often a Christmas tree decorated with fairy lights, tinsel, angels, stars and other seasonal ornaments. Outdoor light sculptures are also becoming increasingly popular. These are many light bulbs or LEDs in the form of trees, sleighs, reindeer, Santa Claus, snowmen and other seasonal figures. Light sculptures may be placed on driveways, roofs or in gardens.

In the evening, often just before bedtime, many families, particularly those with children, will hang up stockings on the fireplace or the end of their bed. These Christmas stockings are often red with a white fluffy trim, although they may be of any design and are often much bigger than the socks that they represent. Children hope that Santa Claus, a mythical figure thought to represent an ancient European saint, will enter their home via the chimney and fill their stocking with gifts, sweets and oranges.

Christmas Eve is not a federal holiday. However, schools and other educational establishments are usually closed. Many organizations will open as usual, but some may close earlier or offer reduced services. Stores are normally open as usual, but may shut earlier. Stores and malls are likely to be very busy, as people look for last minute Christmas gifts and stock up on food for the festive season.

Public transit systems may run a normal or reduced service, particularly in the evening. If you need to use public transit on Christmas Eve, is it a good idea to check the services that the appropriate companies offer carefully. Many people travel to visit family members or friends on Christmas Eve. There may be some congestion on roads and highways, particularly around major cities. Airports and long distance bus terminals may be especially busy.

 

For families who would like their young children to know the reason for the Christmas season, make a birthday cake for baby Jesus. Sing “Happy Birthday” and eat the cake for snack on Christmas Eve while someone reads a version of the Christmas bible story.

Reference :  http://www.timeanddate.com