3 Buffett Stories to Watch in 2011
NEW YORK (TheStreet) - Never one to shy from the spotlight, Warren Buffett's words and actions led to numerous headlines in 2010. Over the course of the last 12 months, fans commented on everything ranging from his trip to China to the introduction of the giving pledge.
Here are a few Buffett related topics which are sure to be exciting to watch in the new year.
- Todd CombsOne of the biggest Oracle of Omaha-related stories of the year centered on Todd Combs. Previously a little known hedge fund manager from Connecticut, Combs has sparked the interest of Buffett followers and market commentators since Buffett announced he would be the person who would take the Berkshire Hathaway (BRK.A) - Get Report reins as chief investment officer upon the legendary investor's departure. While at the head of Castle Point Capital, Combs mimicked Buffett, showing particular interest in financials. However, Combs was known to take a more active approach to his management, a stark divergence from Buffett's noteworthy buy-and-hold investing strategy. Although Warren Buffett has insisted that he has no intentions to step down in the foreseeable future, as we head into 2011, it will be interesting to see what type of impact the introduction of Combs will have on the famous Berkshire Hathaway portfolio.
- BYDWarren Buffett is well known for his attraction to so-called "boring" companies as well as his disinterest in the technology industry. Given these personal preferences, it is peculiar that the world famous investor owns a considerable stake in the Chinese battery maker-turned-electric car company, BYD. Shares of BYD took off in a big way when Warren Buffett first announced his $230 million investment in the latter half of 2008. However, the company faced daunting headwinds this year. Perhaps the most notable hurdle the firm faced in the past year came this summer when weak sales led to a more than 90% decline in profits in the third quarter. Pressure may persist for BYD heading into the start of the year in light of Beijing's decision to allow automobile tax incentives to expire at the start of the new year. Although Buffett's investment in BYD remains profitable, it will be interesting to see if he decides to make a move on this holding in the coming year.
- General ElectricThroughout the global economic crisis and recovery, Warren Buffett and General Electric (GE) - Get Report have forged a noteworthy relationship.The billionaire investor was instrumental in rescuing the conglomerate when it was on the verge of collapse, providing the firm with $3 billion in return for preferred stock and warrants to buy $3 billion in GE common shares at a set price. Thanks to this infusion as well as assistance from the U.S. government, General Electric has managed to stage a comeback. In recent comments made during the company's annual meeting, GE CEO Jeff Immelt painted an optimistic picture, forecasting that the company's core businesses are expected to see growth in the coming year. In regards to Buffett, Immelt insisted that GE would buy back the investor's preferred shares by October 2011. Despite the company's slow resurgence, General Electric looks promising and could end up being one of the more exciting Buffett-related stories to watch in 2011. Investors will want to keep a close eye on this firm in the new year.
--
Written by Don Dion in Williamstown, Mass.
RELATED STORIES:
>>Cramer's Dow 30 Prediction: 13K and Beyond
>>Barclays' 30 Best Stock Picks for 2011
At the time of publication, Dion Money Management did not own any equities mentioned.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.