Warren Buffet
The Most Successful Stock Investor
Warren Buffet is undoubtedly the champion of all stock market investors. He is also referred to as the Oracle of Omaha, the town in which he resides in Nebraska.
Most importantly, he was spared by the dot-com meltdown in 2000. Buffet's ability to make decisions that are often opposite to the general market, is what makes him so special. His discipline and rational thinking are what separated him from other stock investors.
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The Most Successful Stock Investor
Warren Buffet is undoubtedly the champion of all stock market investors. He is also referred to as the Oracle of Omaha, the town in which he resides in Nebraska.
Buffet's own 38 per cent stake in Berkshire Hathaway gives him a net worth of more than $36 billion, making him the second wealthiestman in the world; after Microsoft Tycoon, Bill Gates.
Unlike Peter Lynch,Buffet choose to live and work in a quiet city, staying away from from the hustle and bustle of Wall Street. According to record, he still lives in the modest house he bought for $31,500 40 years ago. He deliberately did this to keep away from the market. He does his own research and spends a lot of time thinking about his investment, just like any other discipline investors do.
He is so success that if you had put $1000 into Berkshire Hathaway back in 1965, you would have $5 million by now. Getting a staggering return of 42.6 per cent per year is not an easy job you know! He have been rewarded for being patient and thinking for long term.
"Stocks are simple. All you have to do is buying shares in a great business for less than the business worth, with respect to its management of the highest integrity and ability. Then you own those shares forever".
With early influence from his father, who was a stock broker, the young Warren Buffet started investing at an early age of about 11. He learnt that patience was a basic ingredient of successful investing and is a lesson not to be missed. Persuaded by his father to further his studies in investment, he met and worked for his mentor; Benjamin Graham "The Father of Modern Investment". It was Graham who got Buffet started in investing in a great way.
Warren Buffet was more interested in the company's management as a major factor when deciding to invest as opposed to the usual financial figures and statements. He would find the 'hidden gem' amongst the hay and accumulated his wealth patiently, and finally acquired Berkshire Hathaway. He has not sold a single share of this company, believing that the best place to invest is often at home.
"We emphasise in finding businesses that are predictable in a general way as to where they'll be in 10 or 15, or even 20 years".
Buffet preferred to invest in a boring but predictable industries, and bought the shares in an unexciting companies such as insurance, textile, food and beverage, of which he knew about firsthand. He had difficulty understanding technology stocks and had stayed away from them. As a result, his long term holdings in such stocks (e.g. Coca Cola, Gillette and American Express) yielded very handsome returns.
Most importantly, he was spared by the dot-com meltdown in 2000. Buffet's ability to make decisions that are often opposite to the general market, is what makes him so special. His discipline and rational thinking are what separated him from other stock investors.
And these are certainly the qualities that all investors wish to have.