Monday, 18 November 2013

Warren Buffett's Greatest Wisdom

According to Forbes' latest list of worldwide billionaires, Warren Buffett is worth more than $50 billion.

The octogenarian’s massive fortune was built through Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B), the company he’s been a controlling shareholder of since 1965. Since that time, Berkshire’s stock has appreciated nearly 600,000% (no, that’s not a typo!) versus 7,400% for the S&P 500 index.

At that rate of return, a $1,000 investment in Berkshire would have become roughly $6 million.

Much of the success at Berkshire has been driven by Buffett’s uncanny skill as an investor. During his career as CEO, he’s made billions for the company and its investors by buying top-notch companies like American Express (NYSE: AXP) and Coca-Cola (NYSE: KO) and holding the stocks for decades.

There’s a lot we can learn from Buffett

Fortunately, not only has Buffett been one of the most effective CEOs of the modern age, he’s also been one of the most transparent. For Berkshire, each year is capped by a letter to shareholders from Buffett that not only details the company’s results, but teaches readers general investing lessons in Buffett’s down-to-earth, folksy style. Outside of those letters, Buffett is also known for delivering some of the all-time most concise, elucidating quips about investing.


Warren Buffett's Greatest Wisdom

No comments: