August 18th 2010

The Machine Buys FISV Before Warren Buffett

Shares of Fiserv Inc (FISV | PowerRating) enjoyed a bounce on Tuesday as word spread that the world’s greatest buy and hold investor, Warren Buffett, had a taken new position in the stock in the second quarter, adding a $200 million investment in FISV to Berkshire Hathaway’s public equity holdings.

Fiserv is a Wisconsin-based business, specializing in financial transaction and account processing, as well as electronic billing and payments. FISV is a member of the S&P 500.

Traders and investors taking advantage of the new, quantified trend following strategies in The Machine® have also been interested in FISV. But with one interesting difference.

Traders and investors using The Machine were alerted to the potential in FISV back in the summer of 2009 when one of three quantified trend following strategies in The Machine provided a buy signal for Fiserv Inc. That’s more than a year before news broke that the Sage of Omaha had decided to begin investing in FISV for himself.

Think about that: Traders and investors using The Machine were scaling-in to FISV more than a year ago.

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August 14th 2010

Warren Buffett on Chocolate and Candy

The following video of Berkshire Hathaway’s (BRK-A) Warren Buffett, gives great insight into how he thinks before making an investment, how he created value added for the company, and increased sales substantially. No wonder why he is a billionaire and top trader and investor. In the video, he discusses his purchase of See’s Candies, which operates over 200 retail shops in the western United States. You will also see Buffett’s sense of humor. If you have never had See’s Candies, you need to try some at your first opportunity. You will love the peanut brittle, my favorite.If you think there are investment opportunities with other candy companies, here are a couple worth looking at.Hershey (HSY), founded in 1894, is the largest manufacturer of chocolate in North America and one of the largest chocolate and candy companies in the world. Hershey’s Kisses were invented in 1901 and their chocolate chips were introduced in 1928. The stock has a P/E of 22, a forward PE of 17, with a flavorful yield of 2.8%. It sports a PEG ratio of 2.39.Tootsie Roll Industries Inc. (TR) is known for its ever famous Tootsie Rolls. Full Article…

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