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 Warren
Buffett is the most successful stock investor of all time,
and the principal owner of arguably the most successful
publicly traded company of all time, Berkshire
Hathaway Inc.
Solely
due to his stock picking abilities, Buffett is
consistently one of the five richest men in America. From 1957 to the present, his investments have
appreciated at an average annual rate of more than 25
percent per year. To
put this in perspective, Donald and Mildred Othmer, family
friends of Warren, invested $50,000 in Berkshire Hathaway, in 1970.
When Mildred died in 1998, their $50,000 Berkshire
Hathaway investment was worth $750 million.
Mr.
Buffett did not achieve these amazing returns for
his shareholders by using complicated investment
strategies or by borrowing money to magnify investment
returns. Instead,
when you study his investment philosophies, some simple themes begin to emerge.
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He
buys companies with the intent of
never selling them.
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He
only buys the stock of companies in sound financial
condition that can be purchased well below his assessment
of their value.
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He
only buys stock in companies he understands.
Some of Buffett’s largest investment
returns have been made in household names like Capital
Cities/ABC, Coca-Cola, and The Washington Post.
In
this day and age of information overload, day trading and
financial misconduct by financial advisors, investors
willing to be patient and to follow the advice of Warren
Buffett will be rewarded.
Rogue
Investor is not affiliated with or endorsed by Berkshire
Hathaway or Warren Buffett, but we are big fans.
Berkshire Hathaway is a registered trademark.
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