Warren Buffett, the Oracle of Omaha is the best and most successful investor in the world. He nearly single-handedly took a failing textile company and turned it into a wildly successful holding company with billions of dollars of yearly revenue, and more than 60 companies under its name. And, while his success can be attributed to the perfect mix of things, he has outlined a handful of rules for success that your average person should follow in order to try and follow in order to be successful in their personal lives.
1. Find your passion
As the saying goes, if you do something that you love, you’ll never work a day in your life. Warren Buffett adheres to this idea, and actively encourages people to take the jobs that they would do if they weren’t being paid. Loving what you do is one of the most important steps to success. Continue reading ‘Warren Buffett’s 7 Rules for Success’ »
Famous billionaire and investor Warren Buffett is by no means scared to share his opinions, and he does so frequently about pretty much any issue that’s on the rise. As per usual, this led Buffett to speak out on the growing issue of income inequality.
The income gap in America, or income inequality, has been increasing for about 30 years. The top 10%’s income averages out to be about 9x as much as the lower 90%, while the top 1%’s income averages out to be 38x more than the bottom 90%. As incomes get higher so does the rate at which they grow— the top 0.1%’s income goes up way quicker than the top 1%, which goes up much faster than the top 10%. To me, it seems obvious that this is an issue, but what about someone in the top 10%? Or 1%? What does Warren Buffett think about this? Continue reading ‘Warren Buffett on the Income Gap’ »
Warren Buffett began purchasing stock in IBM in 2011, allegedly due to its “stickiness within corporate IT departments” but many criticized his decision. However, while his investment has nearly broken even, the stock shrank for around 19 quarters in a row before enjoying a modest 20% rise in the last year. But, after so many years of loss, should Buffett drop IBM?
Generally speaking, Buffett tends to hold on to his investments for the long haul, trusting the eventual upswing of the market to work out in his favor. While investors will try and tell you his “favorite holding period is forever” Buffett does sell stocks fairly frequently when they are no longer lucrative. So, why is he still holding on to IBM?
Here are three reasons why we think that Buffett should go ahead and bow out of IBM while it’s close to in the black: Continue reading ‘Should Buffett Drop IBM?’ »
The 45th President of the United States, Donald Trump, was officially sworn in last week. While the statements he made during his campaign initially made the markets surge in preparation for fewer regulations, his inaugural address left some a little worried about where President Trump will stand as far as businesses are concerned, and what he will do.
As he is the most controversial president in recent history, it’s understandable that many people are a little worried and uncertain of what the future will bring; and businesses and investors will undoubtedly be watching the White House closely. However, in the wake of the massive amounts of concern and excitement about President Trump’s potential, there are a few things that genius investor Warren Buffett recommends for those looking to invest during this tumultuous presidency. Continue reading ‘Buffett’s Advice for Investing During Trump’s Presidency’ »
With the inauguration of our 45th president in the very recent past after a controversial election, politics seem the be at the front of everyone’s mind. While it is definitely true that there are a lot of different factors that make a CEO great, or a businessman great, than what factors make a president great, if we were to choose a business leader, would it be Warren Buffett?
Buffett is famous for his investing techniques, his huge net worth allowing him to rank as the second wealthiest man in the world, and his abundance of business advice, among other things. Even then, there are a lot of things to consider when you’re talking about leading America. Continue reading ‘Would Buffett Make a Good President?’ »
Warren Buffett is no strangers to questions; each year, at his annual shareholder meeting, Buffett and his partner Charlie Munger open up the floor to questions— often for several hours— and Buffett is known to visit schools and businessmen often for Q and A sessions.
The wise octogenarian has shared a lot of information with us normal folk through all of the questions he has answered, and while I do enjoy reading most of his tidbits, I really like when I can tell that a question has plenty of thought put into it. Continue reading ‘Buffett on Earning Success’ »
Every year, Warren Buffett writes an annual shareholder letter, which includes information about Berkshire’s operations, profits, and losses for the last year as well as more than a little of his own personal humor, wisdom, and insight. Reading Buffett’s shareholder letters is a great way to not only get a glimpse into the mind of the Oracle of Omaha, but also learn more about his company.
However, while Buffett has been writing the shareholder letters since around 1965 and all the letters from 1977 through the present are available for free online, reading more than 50 letters isn’t something that we all have time to do. While we’ve been slowly going through and writing a summary of Berkshire Hathaway shareholder letters, there are five that absolutely everyone should read. Continue reading ‘Top 5 Berkshire Hathaway Shareholder Letters’ »
Warren Buffett is most famed for heading conglomerate company Berkshire Hathaway, where he gained most of his $71.5 billion fortune. It is without a doubt his fabled investing techniques that got him where he is today; but, his investing days before Berkshire are often forgotten.
After Buffett’s mentor Benjamin Graham closed his partnership in 1956 where Buffett was working, so Buffett took his savings and started his own firm, Buffett Partnership Ltd. Even before Berkshire, Buffett was writing letters to his partners to keep them posted about what was going on. Similar to the shareholder letters, there are plenty of interesting tidbits hidden throughout the letters, but one thing stuck out to me: Buffett’s ground rules. Continue reading ‘Buffett’s Ground Rules’ »
As the best investor in the world, people are constantly watching Warren Buffett to see what he’s doing. Which companies is he investing in? Which ones is he dropping? Should everyone else follow suit? The articles debating about his choices and evaluating his decisions are endless.
So it should be no surprise that in 2011 when Buffett started buying shares in IBM, and then continued to increase them in the next few years, the investment community was abuzz. IBM’s stock prices were not doing well and from the time Buffett invested, slowly dwindled down to $120 per share in 2016. However, we all know that Buffett invests in companies for the long run. Continue reading ‘Buffett’s Investment in IBM Has Nearly Paid Off’ »
Since Warren Buffett took over the management of Berkshire Hathaway in 1965, he has written an Annual Shareholder Letter outlining the progress of the company, setting goals, and discussing the culture and methodology of Berkshire Hathaway. And, while a good portion of each letter is devoted to a rundown of numbers for Berkshire Hathaway, scattered throughout each article is quite a bit of Buffett’s down-to-earth mentality and some fantastic financial advice.
In this series, I’m going to go through and highlight some of the best letters from 1965 through the present. There won’t really be that much of an order, and we won’t do every year, but inside you’ll find not only an interesting insight into Berkshire Hathaway, but also history and the mind of the Oracle of Omaha himself.
Today, we’re going to take a look at the Shareholder Letter from 2008. This letter comes from the heart of America’s most recent recession, which sets us up for great Buffett wisdom. But before we dive in to the letter, we’ll get some background on what was going on in Berkshire Hathaway that year. Continue reading ‘Buffett’s Shareholder Letter Highlights: 2008’ »