Bio & context
The most successful investor of all time, known for his disciplined value investing approach and long-term focus.
Warren Buffett began investing at age 11 and filed his first tax return at age 13. After studying under Benjamin Graham at Columbia Business School, he founded Buffett Partnership Ltd. in 1956, which consistently outperformed the market. In 1965, he took control of Berkshire Hathaway, transforming it from a failing textile mill into a $700+ billion conglomerate. His annual letters to shareholders are considered masterclasses in investing philosophy. Known for living in the same Omaha house he bought in 1958 for $31,500, Buffett has pledged to give away 99% of his wealth to philanthropy.
Philosophy in their own words
Buy wonderful companies at fair prices and hold them forever. Focus on intrinsic value, not market fluctuations.
Approach & method
Deep fundamental analysis, competitive moats, management quality, and margin of safety. Prefers businesses with predictable earnings and strong competitive advantages. Typically holds positions for decades, not months.
Key strategies
- 1. Circle of Competence: Only invest in businesses you understand
- 2. Moat Analysis: Companies with sustainable competitive advantages
- 3. Margin of Safety: Buy at significant discounts to intrinsic value
- 4. Quality over Price: Prefer wonderful companies at fair prices over mediocre ones at cheap prices
- Transformed Berkshire Hathaway from $19/share (1965) to $600,000+/share (2024)
- Outperformed S&P 500 by 10 percentage points annually over 58 years
- Built portfolio including Coca-Cola, Apple, American Express, Bank of America
- Berkshire Hathaway market cap exceeds $900 billion
- Became billionaire at age 56
- Pledged $51 billion to Gates Foundation
- Annual shareholder meetings draw 40,000+ attendees
- Known for $3.17 million charity lunch auctions
Key metrics
- 19.8% compounded annual return (1965-2023) vs S&P 500's 9.9%
- $10,000 invested in 1965 worth $364 million in 2023
- Only 1 losing year in first 25 years at Berkshire
Strategies by this trader
Recommended reading
- The Essays of Warren Buffett (compiled by Lawrence Cunningham)
- Berkshire Hathaway Letters to Shareholders (1965-present)
- The Snowball: Warren Buffett and the Business of Life (biography by Alice Schroeder)