Warren Buffett is considered the most successful investor of all time. He has personally made over $100 billion, but his company, Berkshire Hathaway, is showing record earnings.
They have shown an average annual growth of 19.8% over the last 58 years since 1965, compared to the S&P 500’s 9.9% annualised average return. The company is on the verge of joining the $1 trillion club with a $952 billion market cap as of 23 February, and stock is up 17% this year.
He is diversified. He knows the companies he wants to be invested in, and they continually grow. He doesn’t believe in timing the market. As he said, ‘It’s time in the market and not timing the market.’ He is patient and looks for and buys good companies run by good people. He looks at who is running the company and their success record and also looks for companies with a moat. In other words, companies that are difficult to compete with.
He looks for a steady return in good quality companies with a moat, run by good people, and then lets compound interest do the rest. He is a firm believer in the magic of compound interest to grow a portfolio over time.
The primary weighting in his portfolio is Apple stock, but he has recently increased his stake in the oil industry. An industry where there is always a profit as people always need energy.
Always look for quality stock and see a financial advisor. Let compound interest grow your money over time.