Warren B uffett is the wealthiest man in the world. If you had started investing with him in 1956, you would be worth today, after all expenses and taxes, over $300 million.
Buffett has done this by investing through his holding company, Berkshire Hathaway, which buys and sells companies, bonds and stocks. He does this primarily by identifying and buying great companies at fair prices, and holding them for long periods of time, often decades, until the stock market recognizes their value. In many cases, his favorite holding period is forever.
The great news is this - what makes this most remarkable is that Buffett maintains that there is no “secret” to building wealth through investing. The promise is that everyone, by using the same principles and methods, can create wealth, preserve it, and pass it on for future generations. He maintains it doesn’t take any special tools, skills, or knowledge to identify these great companies at great prices. Rather it takes a few skills – which everyone has, namely decisiveness, courage of conviction, and patience.
He has stated that if you can’t hold stocks for at least a decade, you shouldn’t be in them for 10 seconds. “Investing in the stock market is not a get rich quickly plan. It’s a get rich slowly plan,” Buffett is quoted as saying.
Several books have been written about him (see below), and at his annual meeting, held the first weekend in May every year, Warren Buffett allows his share owners to pepper him and his partner Charlie Munger with questions. (Charlie is the straight man to Buffet who often says “I have nothing to add.”)
You are advised to find out as much information as you can about investing. Read as much as you can and get ye to a shareowners meeting. I’ll guarantee it’ll be a life changing experience. It has been for me and for the first time investments make sense.
Over the next several weeks we’ll elaborate on his investment strategy. Hold on to your computer screens, you’re in for a heck of a ride
Until next time
Lycka til,
Barry Lycka
Disclaimer: This publication contains the opinions and ideas of its author. It is not a recommendation to purchase or sell securities of any of the companies or investments herein discussed. It is written and read with the understanding the author and publisher are not engaged in rendering legal, accounting, investment or other professional services. Laws vary from state to state, and country to country and if the reader needs expert financial or other assistance or legal advice, a competent professional should be consulted. Although every attempt is made to verify the information found above, neither the authors nor the publisher can guarantee the accuracy of the information contained within. The authors and publisher specifically disclaim any responsibility for any liability, loss or risk, professional or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents above.
For additional reading:
- Warren Buffet Wealth
- The Tao of Warren Buffet by Mary Buffett and David Clark 2006
- Plus these other books by these authors:
- Buffetology
- The Buffetology Workbook
- The New Buffetology
