Warren Buffett is either the 1st or 2nd richest person in the world. His friend, Bill Gates, is the other. Gates entire net worth is due to Microsoft. I am not taking anything away from him–let’s face it, he was a genius on how he created and positioned DOS, Windows, Internet Explorer, and Microsoft Office. However, his entire genius was wrapped up in his ability to exploit the PC and (to a lesser extent) Internet world when they were in their infancy.
Buffett’s accomplishment, in my mind, is much more special. Buffett has accumulated his net worth through an entity called Berkshire Hathaway. Berkshire has been a NYSE public company since 1965. It’s book value per share has increased from $19/share to $70,281, a stunning 21.4% compound annual return. Buffett’s entire net worth of approximately $50B was created through Berkshire’s performance.
Berkshire is a holding company that invests in many different industries. For the most part, he purchases 100% (or close to 100%) of private companies. Among the recognizable names in his holding company are GEICO insurance, Russell sports wear, and Clayton Homes. Buffett, who is known as the Oracle of Omaha, outshines Gates because he was mind-boggling successful in many industries over a period of decades. His accomplishment is nothing short of amazing.
“The Bear” is my nickname. I am, as you can tell, an avid fan of the Omaha Oracle. My grandpa made a killer barbeque sauce but he would never tell us how he made it. Buffett, however, shares his secret sauce quite openly. Through his annual reports, he presents his approach in clear and understandable narrative. In fact, it is even fun to read. I believe strongly in his approach and, in this blog, you will see me refer to Buffett over and over again. It is for good reason–we all can learn a lot from him.
Leave a response (0 so far)
Subscribe via RSS
