Nearly All of Buffett’s Wealth Came After Age 50

The stock market reached yet another all-time high today. The S&P 500 has been as high as 1,989.23 this morning. We’re soon going to have to start talking about 2,000.

On our Buy List, Microsoft ($MSFT) is doing well this morning. After yesterday’s earnings report, I wasn’t sure what it would do today. The stock is currently up to $45.34 which is a gain of 1.1%. The shares closed at $41.67 only two weeks ago.

At the weak end, shares of McDonald’s ($MCD) are down after some downgrades. This comes a day after missing earnings. MCD is currently off by 1.2%.

After the close, we’ll get earnings reports from CA Technologies ($CA) and Qualcomm ($QCOM). Shares of QCOM have perked up recently.

Yesterday, Bill Ackman delivered his much-anticipated presentation on Herbalife ($HLF). The advanced billing was that this will floor investors and make us realize what a terrible stock HLF is. Well, the presentation flopped and HLF soared more than 25%. Not bad for one day.

My take is that Herbalife is slimy but legit. I wouldn’t invest in them, but I wouldn’t short them either.

I wanted to share two snippets from Morgan Housel’s latest. Morgan’s a great guy and one of the best writers on finance around. His column is titled: “I Prefer to Keep Things Simple.”

The two sentences are:

“Of Warren Buffett’s $63 billion net worth, $62.7 billion was added after his 50th birthday”

“The single best stock to own of the last 50 years was cigarette giant Altria . Its stock compounded at an average of nearly 20% a year for half a century—enough to turn $1,000 into more than $8 million.”

Posted by on July 23rd, 2014 at 12:02 pm


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