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Over the last 70 years, value stocks clocked a 13.4% average annual return, vs. 10.2% for growth stocks, according to Ibbotson Associates.

Warren Buffett

The first authorized biography provides deep—and timely—insight into the psyche of the billionaire investor. For more than half a century Warren Buffett has shown impeccable timing. So perhaps it should come as no surprise that the first biography he has authorized was published in late September as news of the financial crisis that he had warned about dominated the front pages and just days after he had agreed to inject $5 billion into Goldman Sachs (GS).

Billionaire Warren Buffett, the world's preeminent stock picker, said the U.S. economy is ``flat on the floor'' after a cardiac arrest as companies struggle to secure funding and unemployment increases.

``In my adult lifetime I don't think I've ever seen people as fearful, economically, as they are now,'' Buffett said today in an interview with Charlie Rose to be broadcast tonight on PBS. ``The economy is going to be getting worse for a while.''

Read the transcript of the interview ...

General Electric Co (GE) just announced plans to raise $15 billion, with a little help from Warren Buffett. The company is selling $12 billion of common stock to the public and $3 billion of preferred to Berkshire Hathaway.

A new biography of Warren Buffett was published Monday offering fresh insights into one of the world's savviest investors even as global financial markets are undergoing unprecedented turmoil.

MidAmerican Energy, 87.4 per cent owned by Mr Buffett's Berkshire Hathaway, will buy 225m shares in the Shenzhen-based company for HK$1.8bn ($230m) at a 4.76 per cent discount to the stock's closing price of HK$8.4 last Friday.The purchase marks the first large investment by Mr Buffett in China after Berkshire Hathaway last year sold its entire stake in PetroChina.

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On Tuesday, Mr. Buffett says, he was sitting with his feet on his desk in Omaha, drinking a Cherry Coke and munching on mixed nuts, when he got an unusually candid call from a Goldman Sachs Group Inc. investment banker. Tell us what kind of investment you'd consider making in Goldman, the banker urged him, and the firm would try to hammer out a deal.

Warren Buffett calls it waiting for the "fat pitch." It's a baseball analogy which says swing at the ball (invest) when it's most hittable (cheapest). As in baseball, these moments are few and far between and they tend to occur during selling climaxes, when throwing the bat feels hardest.

Famed Investor's Move Is Seen as a Vote of Confidence in Crisis-Stricken Banking System; Old Ties to Firm Paved Way for Deal. Berkshire also will get warrants granting it the right to buy $5 billion of Goldman common stock at $115 a share, which is 8% below the 4 p.m. closing share price Tuesday of $125.05. At Goldman's roughly $50 billion market value, based on that closing price, exercising those warrants would give Berkshire about a 10% stake in Goldman.

Billionaire investor Warren Buffett, calling the market turmoil ``an economic Pearl Harbor,'' said Treasury Secretary Henry Paulson's $700 billion proposal to prop up the U.S. financial system is ``absolutely necessary.''

``The market could not have taken another week'' like last week, Buffett told CNBC, a day after saying his Berkshire Hathaway Inc. will buy a $5 billion stake in Goldman Sachs Group Inc. ``I think it was the last thing Hank Paulson wanted to do, but there's no Plan B for this.''

Warren Buffett studied stock market analysis at Columbia University, in New York, under the wing of Benjamin Graham who was, until the arrival of Buffett, perhaps the greatest thinker on portfolio investment. Graham was a classic value investor. In other words he was looking to buy companies whose net asset value per share was greater than the share price.

Times Money offers an insight into the thinking of the Sage of Omaha.

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