Fortune Magazine:  The $600 billion challenge

The IRS facts for 2007 show that the 400 biggest taxpayers had a total adjusted income of $138 billion, and just over $11 billion was taken as a charitable deduction, a proportion of about 8%. The amount deducted, we need quickly to add, must be adjusted upward because it would have been limited for certain gifts, among them very large ones such as Buffett's $1.8 billion donation that year to the Gates Foundation. Even so, it is hard to imagine the $11 billion rising, by any means, to more than $15 billion. If we accept $15 billion as a reasonable estimate, that would mean that the 400 biggest taxpayers gave 11% of their income to charity -- just a bit more than tithing.Is it possible that annual giving misses the bigger picture? One could imagine that the very rich build their net worth during their lifetimes and then put large charitable bequests into their wills. Estate tax data, unfortunately, make hash of that scenario, as 2008 statistics show. The number of taxpayers making estate tax filings that year was 38,000, and these filers had gross estates totaling $229 billion. Four-fifths of those taxpayers made no charitable bequests at death. The 7,214 who did make bequests gave $28 billion. And that's only 12% of the $229 billion gross estate value posted by the entire 38,000.All told, the data suggest that there is a huge gap between what the very rich are giving now and what the Gateses and Buffett would like to suggest is appropriate -- that 50%, or better, of net worth. The question is how many people of wealth will buy their argument.Full StoryIn 2006, [Warren Buffett] made a commitment to gradually give all of my Berkshire Hathaway stock to philanthropic foundations. I couldn't be happier with that decision.Now, Bill and Melinda Gates and I are asking hundreds of rich Americans to pledge at least 50% of their wealth to charity. So I think it is fitting that I reiterate my intentions and explain the thinking that lies behind them.Full Letter

http://feedproxy.google.com/~r/ReflectionsOnValueInvesting/~3/mwXMKh2M9hQ/fortune-magazine-600-billion-challenge.html

Managing Risk With Dividend Stocks
 


     
   
 
When you purchase individual stocks, risk is inherit. Sometimes bad things sometimes happen to good stocks. Sometimes it is difficult when a strong leader leaves a company and creates a void that just can’t be filled. So how do you guard against these situations and disasters similar to what BP (BP) and their shareholders are currently facing?
Original news source
 

http://www.valueinvestingnews.com/managing-risk-dividend-stocks
 

McDonald's Corporation (MCD) Dividend Stock Analysis
 


     
   
 
McDonald's Corporation is the largest fast-food restaurant company in the world. Its restaurants serve a varied, yet limited, value-priced menu in more than 100 countries around the world. Linked here is a detailed analysis and commentary.
Original news source
 

http://www.valueinvestingnews.com/mcdonald039s-corporation-mcd-dividend-stock-analysis
 

Magic Formula Weekly Roundup 6/5/2010
 


     
   
 
Weekly roundup of stocks moving in and out of Joel Greenblatt's Magic Formula Investing screens.
Original news source
 

http://www.valueinvestingnews.com/magic-formula-weekly-roundup-652010
 

Ira Sohn Conference:  Speeches

The Ira Sohn Research Conference Foundation, dedicated to the treatment and cure of pediatric cancer and other childhood diseases.The Ira Sohn Investment Research Conference was founded in 1995 after the untimely passing of Ira Sohn. Sohn was a successful trader on Wall Street who battled cancer and passed away at the age of 29. His courageous battle with cancer inspired his colleagues and friends to launch the annual Ira Sohn Investment Research Conference.Proceeds from the conference are donated to organizations dedicated to the care and treatment of children with pediatric cancer and other life-threatening illnesses. The organizations served include Memorial Sloan-Kettering Cancer Center, the Tomorrows Children’s Fund at Hackensack University Medical Center, New York-Presbyterian Hospital/Weill Cornell Medical Center, and ArtWorks, an art therapy program that allows children fighting diseases to express themselves through art. Wall Street Journal coverage. See also: April 2008: The Gotham Prize September 18, 2007: Robert Goldstein & Joel Greenblatt's Gotham Prize

http://feedproxy.google.com/~r/ReflectionsOnValueInvesting/~3/26aoavOSjVs/ira-sohn-conference-speeches.html

Buffett's 1982 Letter Warning Dingell About Derivatives

Forbes has obtained a copy of Buffett's March 5,  1982, letter to Rep. John Dingell, D-Mich., laying out the risks of  derivatives to the nation that were, of course, largely ignored. In the  letter Buffett modestly refers to his background, referencing his  previous 25 years spent as a financial analyst, and 30 years "in various  aspects of the investment business." He adds, "I currently have the  sole responsibility for an equity portfolio that totals over $600  million." It sounds prosaic now: $600 million!Full Article

http://feedproxy.google.com/~r/ReflectionsOnValueInvesting/~3/iIUlUYDti6s/buffetts-1982-letter-warning-dingell.html

Berkshire Hathaway Annual Meeting Notes

With much gratitude to:Ben ClaremonProfessor David Kass, University of MarylandJoe KosterJ.V. Bruni & CompanyLincoln MinorMax OlsonPeter BoodellProfessor Susan White, University of MarylandWhitney TilsonPlease email if have any additional notes. Thank you!

http://feedproxy.google.com/~r/ReflectionsOnValueInvesting/~3/gWemBZXBc5E/berkshire-hathaway-annual-meeting-notes.html

A better alternative to P/E or P/B?
 


     
   
 
A new study shows that a lesser-used valuation metric, the gross profits-to-assets ratio, might have value.
Original news source
 

http://www.valueinvestingnews.com/better-alternative-pe-or-pb
 

The Forbes Top 150 Companies Ranked in Magic Formula Fashion
 


     
   
 
The Forbes Top 150 Companies list ranked by Magic Formula Statistics. Which large global companies are both cheap and highly efficient with capital?
Original news source
 

http://www.valueinvestingnews.com/forbes-top-150-companies-ranked-magic-formula-fashion