Just a regular billionaire.
Warren Buffet is one of the richest people in the world (I think it’s 3rd at the moment). A few years ago, he was even the richest person in the world.
In principle, he has regularly taken the first three places for Bill Gates and Carlos Slim.Until then Jeff Beszos, with his incredibly successful company Amazon, rolled up the field from behind.
He is also the founder of so-called value investing.With this investment strategy, he has regularly made incredible returns. At the beginning of his career, he bought Berkshire Hathaway, a textile manufacturer that was doing badly economically.
He quickly abandoned his core business because this industry was already moving abroad to save on labour costs.Instead, he built Berkshire Hathaway into a holding company to buy shares in other companies or those companies. Initially, he focused on the insurance industry because it generated stable cash flow with the contributions of the insured, which was not necessarily needed immediately, and invested this money in other companies.
Berkshire Hathaway is now a huge conglomerate of nearly 100 companies across all sorts of industries.Berkshire Hathaway is one of the largest companies in the world, with an annual turnover of almost 250,000,000,000 dollars per year.
Buffet took the approach only of buying companies with a successful earnings model, and only if the shares of these companies were cheaply available.
To do this, he calculates the value of the company, draws a safety margin from it (I’m no longer sure I think it was 20%) and only bought if the price has fallen below the maximum value it has calculated.
He attaches particular importance to companies that have a so-called moat.This means a unique product/service or a special level of quality, which can only be produced by the competition on the market under unreasonable conditions or even better not at all.
With this strategy, he achieved annual returns of around 20% over decades.
In recent years, it has become a little less.Berkshire Hathaway is now so big and has so much financial reserves that if the company invests somewhere, it takes so much money into its hands that it itself becomes the biggest influence on the course of the company to be taken over.
As a result, profitable potential takeover targets are, of course, becoming increasingly rare and difficult to find.
Berkshire has never paid a dividend.Because the investor would then have to tax the money, Buffet prefers to keep the money in the company and, in the extreme case, to push the share price further up through share buybacks.
Berkshire’s stock that has never been split is now the most expensive in the world, with a unit price of just over 250,000 dollars.
This unique success story and the sympathetic modest and rather reserved appearance of Buffet have brought him a lot of fans and admirers.
That’s why Berkshire Hathaway’s annual general meeting is relatively much more of the shareholders in person to meet him personally, but also Vice President Charles Munger, who enjoys a similar legend status.
Under the name :
“Woodstock of the Capitalists”
this annual meeting has become known.With around 35,000 participants each year, it has become a serious influence on the local economy of Omaha, Nebraska.
We owe some of the smartest quotes about business to Warren Buffet.
Which is why he is also loving
The Oracle of Omaha
This was the most valuable thing for me:
“With bad people, you can’t do good business.”
But his view of the metal gold is also illuminating:
“Gold is excavated from the soil in Africa or anywhere else in the world.
Then we melt it, dig another hole, hide the gold in it again and then pay people to stand around and guard it.
Gold is simply useless.If Martians saw that, they would scratch their heads.”
“Through the rear-view mirror you can see more and more clearly than through the windshield. “
“Invest only in a company that could also lead to a stupidity.Sooner or later it will happen.”
“Never invest in a business model that you don’t understand.”
“No business that has happy customers has ever failed.”