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Warren 10 Crucial Reasons For Warren Buffett’s Unstoppable Success

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    Crucial Reasons for Warren Buffetts

    Unstoppable Success

    10

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    1.He Lives by Two Simple Rules

  • 1. Never Lose Money2. Never Forget Rule #1

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    2.He Has the Ideal Business Partner

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

  • 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

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    3.He Knows Reputation is Vital

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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:

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

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    4.He Thinks Long-term

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

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

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

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    5.He Stays Within His Circle of Competence

  • Warren Buffett has an incredible intellect and focus. But, he also knows he cant be an expert on everything.

  • He sticks to the industries that he knows (banks, insurance, consumer goods) and avoids the ones he doesnt.

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    6.He Started Young

  • Warren Buffett bought his first stock at age 11.

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

  • ...just to antagonise them.

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    7.He Cares About Value Above All

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

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

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    8. He Keeps Emotions and Investing Decisions Separate

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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

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

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    9.He Likes to Take Advantage of Market Capitulation

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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.

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

  • When downpours of that sort occur, its imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.

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    10.He Is Not a Fan of Hedge Funds

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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.

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

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

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    Why Would You Listen to

    Warren Buffett?

  • If you invested $10,000 in Buffetts investment company Berkshire Hathaway in 1965...

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

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    Warren Buffett has successfully navigated the market since 1965.

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    Berkshire Hathaway In Per-Share Market

    Value (1964-2016) Overall Gain

    =

    1,972,595%

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

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

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    Would You Like Exposure to

    Berkshire Hathaway?

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    1. Gain Exposure to Berkshire Hathaway

    2. Gain Exposure to the US and International Markets

    3. Have Warren Buffetts Skills and Experience Impacting Your Investment

    Register to Learn How You Can:

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    1. The Investment Overview (Product Disclosure Statement)

    2. Berkshire Hathaways Most Recent Annual Report

    3. An Interview With Warren Buffett On His Investment Strategy

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