Warren Buffett Is My Hero

Most Of The Time

When it comes down to it, the only hero I really have is Edward Snowden. In a bold move against the NSA's ethical lapses, he transformed into a whistleblower in 2013, unveiling thousands of classified documents. Global media giants like the Washington Post, the New York Times, the Guardian, Der Spiegel, and Le Monde amplified the disclosure. Snowden's collaboration with journalists exposed the extensive reach of the NSA's mass surveillance machinery and revealed extensive cellphone tracking, email harvesting, and global espionage. The revelations included the United States spying on allies like Germany, France, the United Kingdom, Brazil, and Mexico. U.S. federal prosecutors charged him with theft of government property and violating the Espionage Act of 1917. It’s time he was officially pardoned. He was right.

Warren Buffett is right more than he is wrong. That doesn’t mean you should follow his every move, but there were a few securities he took a position in recently that fit into my management style as well. I like the guy, as he is consistent. Like Warren, I am not always going to be right, but more often than not, I am right. Above all, I’m consistent, and that’s more important than anything except being patient.

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Buffett likes cash flow. Buffett likes domestically oriented companies. He likes fast food, too, so we’re not totally on the same page, but we’re close. Recently, he jumped on Domino’s Pizza (“DPZ”) and Pool Corp. (“POOL”). I had a “small” investment in DPZ and followed him in POOL. Neither one pays a huge dividend so Buffett must be looking for growth. I think he is right.

Domino’s Pizza

Domino's Pizza is a leading global pizza delivery and carryout company known for its innovative technology and efficient operations. As a publicly traded company on the NYSE, Domino’s is a noteworthy performer in the quick-service restaurant industry, attracting both growth and income-focused investors.

Domino's has increased its global footprint with thousands of locations worldwide. Its "fortressing" strategy, adding more stores in existing markets to reduce delivery times, supports same-store sales growth. It generates revenue from franchise fees, supply chain operations, and direct sales from corporate-owned stores.

Domino’s invests heavily in technology, offering seamless app-based ordering, AI-powered delivery forecasts, and proprietary supply chain efficiencies. These major innovations differentiate it from competitors. It has consistently maintained strong margins due to its franchise-heavy model.

Domino’s competes with other QSRs, independent pizzerias, and delivery services like DoorDash and Uber Eats. Market share and profitability can be influenced by price wars, promotions, and consumer spending trends. Overall inflationary pressures on ingredients or labor costs could compress margins. International growth has been robust, although performance varies by region due to economic conditions, currency fluctuations, and market saturation.

Pool Corp

Pool Corporation is the world’s largest direct wholesale distributor of swimming pool supplies, equipment, and related leisure products. It has seen an increase in investor interest following strategic developments and macroeconomic trends favoring home improvement and outdoor recreation sectors.

Pool Corporation consistently demonstrates robust financial performance, supported by a solid distribution network and demand for its products. POOL is known for its dividend policy, offering consistent payouts to shareholders, which can be appealing to income-focused investors.

The stock benefits from (1) increased consumer interest in outdoor spaces and home improvement, (2) seasonal demand for swimming pool maintenance and construction supplies, and (3) an emphasis on eco-friendly and energy-efficient pool equipment.

Buffett is not always right. Neither am I. Buffett is usually early. So am I, nonetheless, he is consistent and logical. Being right is beneficial. Increasing portfolio value, over time, is as well. Sure, we trade about 10% of our total Roth IRA-managed money. This has been a tremendous year, and it’s not over yet. If we did not have a safe and secure long-term underlying investments, taking trading risks would be minimal. When you are earning 5%+ and inflation is about 3% you can afford to take some risk.

Remember, bears make money, and bulls make money. Pigs get slaughtered. Don’t be greedy; be happy to take your profits out of the middle. Hitting all of the tops and the bottoms is unrealistic. The only people that do that are on TikTok.

Fifty-five years ago, Zager & Evans released “In The Year 2525”. It made it to #1 on the Billboard charts. A “one-hit” wonder for certain, but one that changed my life. In a similar way where today’s political system can “make Orwell fiction again,” we have those who can turn dreams into reality. There is nothing wrong with dreaming. There is a problem limiting anyone’s beliefs, telling them to moderate their expectations. It’s been fifty-five years since we first set foot on the moon. This song hit #1 at the same time. What’s next?