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Buffett’s Great Achievements

January 20, 2012 | About:
Mara Kohn

Mara Kohn

4 followers
Warren Buffett is considered one of the best investors of modern times. He has been heading Berkshire (BRK.A)(BRK.B) for more than 30 years and since its foundation, its per-share book value has climbed more than two digits. In addition, during almost all these years, the company has surpassed the S&P and its stock price has risen significantly.

There are those who consider that there are other investors who have been more successful than Buffett. This is the case of John Train, who in his book Money Masters of Our Time states that George Soros has made more money. The issue is that Soros strategy cannot be imitated and his writings are never available to investors.

On the other hand, Buffett usually does what an ordinary investor would have done and this involves buying in generally familiar companies such as Coca-Cola (KO) and Gillette. Most importantly, his thoughts have been put in writing and have become available to everyone. And in a very detailed form. He has always explained what he has done, what he has avoided doing and why. He has even boosted investors to follow his path: Buy wonderful companies when their stocks are a little cheap, then hold them forever.

Another important issue about Buffett is that he is very clear when he explains his philosophy and he transmits good energy. Although he is not always available to the press, he is not as hard as others in this sense.

What makes him the best investor from a personal standpoint is his simplicity. He is one of the richest persons in the United States but he can be seen eating a hamburger and drinking Coke. He has rarely left the city where he lives, Omaha and has become rich by doing what anyone else can do.

In terms of investments, Buffett usually uses arbitrage, preferred stock, and other somewhat off-the-beaten-path strategies. Moreover, he is considered a very honest man and pays close attention to his reputation. He always wants shareholders to see that he is not engaged in blurry issues.

Buffett is unshakably loyal to his friends. He never loses an opportunity to express his admiration for Ben Graham.

As Buffett’s friend, the Fortune writer Carol J. Loomis has written, “...this is a company that thinks first and foremost about its shareholders...”

Not surprisingly, Berkshire is No. 7 on Fortune’s list of most admired companies in America.

Rating: 4.0/5 (9 votes)

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