Warren Buffett's Portfolio Yields a Big Surprise
Warren Buffett is arguably the greatest investor of our time. With roughly $10,000 in hand in the mid-1950s, the Oracle of Omaha has grown that initial nest egg into a net worth that now exceeds $79 billion. And, as I've noted before, if not for his philanthropic contributions over the decades, he just might be the wealthiest man in the world right now.
What makes Buffett's success so interesting is that he isn't trying to reinvent how to invest. Rather, he seeks out companies that have clear competitive advantages and, often, a long history of profitability. Essentially, these are companies that he could buy and forget about for years or decades at a time. It's an investment strategy that might bore the daylights out of some investors who enjoy the heart-pounding tick of the Dow Jones Industrial Average up or down a fraction of a percent, but it works for him. In fact, averaged out over many decades, Buffett's book value growth for Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B), the company he runs as CEO, has absolutely thumped the S&P 500.
Berkshire Hathaway CEO Warren Buffett speaking with reporters at the company's annual stockholder meeting. Image source: The Motley Fool.
Source Fool.com