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TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041 PH: 03 8080 5788 WEB: www.traderscircle.com.au EMAIL: [email protected] Crucial Reasons for Warren Buffett’s Unstoppable Success 10

Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Page 1: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

PH: 03 8080 5788WEB: www.traderscircle.com.auEMAIL: [email protected]

Crucial Reasons for Warren Buffett’s

Unstoppable Success

10

Page 2: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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Disclaimer

Page 3: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

PH: 03 8080 5788WEB: www.traderscircle.com.auEMAIL: [email protected]

PH: 03 8080 5795

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OzFinancial Australia Pty Ltd, ABN 36 145 312 232 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

1.He Lives by Two

Simple Rules

Page 4: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

1. Never Lose Money2. Never Forget Rule #1

Page 5: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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2.He Has the Ideal Business Partner

Page 6: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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Buffett teamed up with Charlie Munger in 1978, changing the way Buffett looked at stocks.

Page 7: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“Charlie Munger has had a big impact on me, moving me into looking for wonderful companies at fair prices, rather than fair companies at wonderful prices”

Page 8: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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3.He Knows

Reputation is Vital

Page 9: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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Buffett bought into Wall Street investment bank Salomon Brothers

and was the only thing stopping them from closing their doors after a

bombshell trading scandal.

Famously saying this to Salomon Brothers employees:

Page 10: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“Lose money for the firm and I will be understanding. Lose a shred of reputation for the firm and I shall be ruthless”

Page 11: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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4.He Thinks Long-term

Page 12: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

Perhaps no investor is more patient than Warren Buffett. He bought shares in the Washington Post in 1973 for $10 million.

Page 13: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

Nearly a year after his initial investment, he had endured a 20% loss on the position.

Page 14: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

By 2004, he had a gain of $1.7 billion...

Page 15: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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5.He Stays Within

His ‘Circle of Competence’

Page 16: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

Warren Buffett has an incredible intellect and focus. But, he also knows he can’t be an expert on everything.

Page 17: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

He sticks to the industries that he knows (banks, insurance, consumer goods) and avoids the ones he doesn’t.

Page 18: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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6.He Started Young

Page 19: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

Warren Buffett bought his first stock at age 11.

Page 20: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

He quickly became hooked on all things business, buying a paper route at 13 and even shorting stocks his teachers were invested in...

Page 21: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

...just to antagonise them.

Page 22: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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7.He Cares About Value Above All

Page 23: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

Buffett believes that intrinsic value estimations offer “the only logical approach to evaluating the relative attractiveness of investments and businesses.”

Page 24: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

This philosophy has always been the core to his investing strategy.

Page 25: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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8. He Keeps Emotions

and Investing Decisions Separate

Page 26: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Buffett believes behaving rationally in the face of ups and downs

of the market has been the key to his investing success

Page 27: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“Only when you combine sound intellect with emotional discipline do you get rational behaviour.”

Page 28: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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9.He Likes to Take

Advantage of Market Capitulation

Page 29: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Buffett believes the biggest of investments should be made when economic downturns are at their

worst and prices are at their lowest.

Page 30: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold.”

Page 31: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.”

Page 32: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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10.He Is Not a Fan of

Hedge Funds

Page 33: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Buffett believes that if you purchase an indexed fund, you will outperform

a hedge fund due to the fees and charges involved.

Page 34: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“A number of smart people are involved in running hedge funds.”

Page 35: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

“But to a great extent their efforts are self-neutralizing, and their IQ will not overcome the costs they impose on investors.”

Page 36: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

TradersCircle Pty Ltd, ABN 65 120 660 497 is a corporate authorised representative of OzFinancial Pty Ltd, AFSL number 241041

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Why Would You Listen to

Warren Buffett?

Page 37: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

If you invested $10,000 in Buffett’s investment company Berkshire Hathaway in 1965...

Page 38: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

...by the end of 2016 it would be worth $162 million.

Page 39: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Warren Buffett has successfully navigated the market since 1965.

Page 40: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Berkshire Hathaway In Per-Share Market

Value (1964-2016) Overall Gain

=

1,972,595%

Page 41: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

Even taking into account the Global Financial Crisis,If you had invested $100,000 in Berkshire Hathaway in 2006...

Page 42: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

...it would be worth over $293,000 today.

Page 43: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Would You Like Exposure to

Berkshire Hathaway?

Page 44: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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1. Gain Exposure to Berkshire Hathaway

2. Gain Exposure to the US and International Markets

3. Have Warren Buffett’s Skills and Experience Impacting Your Investment

Register to Learn How You Can:

Page 45: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Register Now

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1. The Investment Overview (Product Disclosure Statement)

2. Berkshire Hathaway’s Most Recent Annual Report

3. An Interview With Warren Buffett On His Investment Strategy

Register to Receive:

Page 47: Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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Register Now