SOURCE: Corda Investment Management

May 16, 2011 15:15 ET

Corda Investment Management Team Finds Common Ground With Warren Buffet, His Philosophy and His Position on the Stock Market

HOUSTON, TX--(Marketwire - May 16, 2011) - "Being born in the 1930s, I can say that perseverance and hard work paid off for both me and our country," Warren Buffet told the thousands of investors attending the Berkshire Hathaway Corporation's Annual Shareholder meeting earlier this month in Omaha, Nebraska. "It is no different today."

Amid the sea of 35,000 shareholders, Bonner C. Barnes and John Schloegel of Corda Investment Management (www.cordamanagement.com), a full-service money management firm, nodded in agreement.

"In a world of traders and speculators, hedge funds and black boxes, options futures and other derivatives, the successes of Warren and Charlie (Munger) are there to remind us of the enduring wealth-building characteristics of the patient investor who buys low, receives an attractive cash flow, and holds for the long term," said Barnes, Corda's President and Chief Investment Officer.

Buffet is the chair of Berkshire Hathaway, and recognized for becoming one of the world's wealthiest individuals, a result of a lifetime of "value investing."

"Charlie and Warren have demonstrated tremendous patience regarding what, when, and how much they will pay when making an investment," said Barnes. "They do not like to see their existing companies making acquisitions with shares. They'd rather see acquisitions with cash."

Buffet and Munger, who is vice chairman of Berkshire Hathaway, stressed the importance of good cash flow and the earning power when they evaluate an investment.

"Berkshire recently bought a brick-making company in Alabama, with no other bidders involved," said Schloegel, Corda's Head of Portfolio Management. "They do not expect to make any money on this for a year or two. But they do expect earnings over the long run."

Barnes found a parallel with Corda.

"We like to talk about buying real estate when it's out of favor, paying 70 cents on the dollar, cashing in on the rents, while it rises to fair value over the long term," said Barnes. "Warren and Charlie use that same philosophy with a down and out brick manufacturer."

He added that "being there for one amazing Saturday in Omaha was a great opportunity to validate our own investment philosophy here at Corda as we position ourselves for the next bull market."

Contact Information

  • John Schloegel
    Email Contact
    CORDA Investment Management
    Tel: 713.439.0665