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March 4 th 2013. Common Cents Investment Group March, 2013 Agenda  T-shirts!  E-Board Applications  Today in the Market  Berkshire Hathaway  Options.

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Presentation on theme: "March 4 th 2013. Common Cents Investment Group March, 2013 Agenda  T-shirts!  E-Board Applications  Today in the Market  Berkshire Hathaway  Options."— Presentation transcript:

1 March 4 th 2013

2 Common Cents Investment Group March, 2013 Agenda  T-shirts!  E-Board Applications  Today in the Market  Berkshire Hathaway  Options and Futures by Nick Ramstetter

3 Common Cents Investment Group March, 2013 E-Board Information  Interviews are to occur either Sunday or Saturday  I will send out a follow-up tomorrow requesting availability  Short (5-15 min), informal interviews  Want to get to know you better and let you expand on some ideas that you mention in your application  Wear your best suit (Just kidding…don’t do that!)

4 Common Cents Investment Group March, 2013 Today in the Market

5 Common Cents Investment Group March, 2013 Phillips in the News  Not as relevant, but cool!  http://www.bloomberg.com/video/led-bulb- adoption-taking-off-philips-sebasky- Lr6X3mv4QPG4wlZRqHmePw.html

6 Common Cents Investment Group March, 2013 Apple’s Watch  http://www.bloomberg.com/video/iwhat-will- apple-come-out-with-iwatch- 21iBsuF_Tv6UKFpO1MXegg.html

7 Common Cents Investment Group March, 2013 Wealth in India  http://www.bloomberg.com/video/why-you- may-want-to-start-investing-in-india- RORR6NaQTsWC4STZkH~PCg.html http://www.bloomberg.com/video/why-you- may-want-to-start-investing-in-india- RORR6NaQTsWC4STZkH~PCg.html  Brian pitched about Tata Motors  Indian car manufacturing

8 Common Cents Investment Group March, 2013 The Great Divide  Sequester: “Isolate or Hide away”  A general cut of government spending that is designed to force an agreement in Washington Designed to be devastating to Republicans and Democrats $55 B cuts for defense $27 B cuts for non-defense domestic spending Took place March 1 st Spending authorizations take place March 27 th Needs worked out before then!

9 Common Cents Investment Group March, 2013 The Great Divide  http://www.bloomberg.com/news/2013-03- 04/obama-congress-take-wait-and-blame- approach-on-budget.html

10 Common Cents Investment Group March, 2013 Berkshire  Earnings reported  $24 B increase in net worth Warren says “Ehhhh” BRKB performance is a lot greater when the market is flat

11 Common Cents Investment Group March, 2013 Berkshire  Lagging performance is only the company’s 9 th in 48 years  But 3 rd in 4 years  If market continues to rise, his streak of beating the S&P will be over  Failed to secure another large deal in 2012 Said he studied several, but didn’t “pull the trigger”

12 Common Cents Investment Group March, 2013 Berkshire  Several, small “bolt-on” purchases by Berkshire  Only around $2B in investments  Berkshire is putting up $12B for partial buyout of Heinz Co.  He wants more!  With $47B in cash, small deals don’t do much…

13 Common Cents Investment Group March, 2013 Berkshire  Other acquisitions  28 daily newspapers - $344 M  Boosted stake in  Coca Cola  American Express  IBM  Wells Fargo

14 Common Cents Investment Group March, 2013 Berkshire  He discussed two new investment managers at Berkshire, Todd Combs, Ted Weschler  Outperformed S&P by double digits in 2012  BRKB reported net income of $14.8B for 2012 Up 45% from 2011 Improved results at insurance units $1.28B in derivative gains

15 Common Cents Investment Group March, 2013 Berkshire  Buffet finishes with a message to other chief executives who decline to invest in the future due to economic uncertainty  http://www.berkshirehathaway.com/letters/2 012ltr.pdf

16 Common Cents Investment Group March, 2013 Berkshire  http://www.bloomberg.com/video/don-t- copy-warren-buffet-laffont- 1vSvxzhbR5yyQ7OoGnN63Q.html

17 Nick Ramstetter Options and Futures

18 Common Cents Investment Group March, 2013 Membership  Cost is only $20 for the whole year!  Benefits:  Member of a very beneficial and informative club that will inevitably be valuable in your future  A network of friends who share a similar interest in investing and personal finance  A virtual portfolio challenge that will strengthen your confidence in investing

19 Common Cents Investment Group March, 2013 Membership  Make sure to check out our website for the presentations Monday night | ccig.osu.edu  Get on our Facebook page and like us! www.facebook.com/ccigosu

20 Common Cents Investment Group March, 2013 Questions?  Questions, comments or concerns?


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