The Warren Buffett style of investment is one that is ultimately about using custom-tailored and bespoke stock-picking methods. The style is largely related to buying stocks at a discount when they are undervalued to their true actual value. One of the easiest examples for many investors to be able to comprehend this theory is by looking back at the 2008 financial crisis in America, where many stocks and real estate opportunities arose when they went below their true value. This is why they were bought up, and there has been a very large market rise ever since.
Essentially, the technical side of his investing involves choosing stocks which he is comfortable and familiar with, first of all; He must know the company in order to invest and understand the business model as well. Some of the stocks which he chose last year include Delta Airlines, Bank of America, Apple, and other familiar companies’ products which we as Americans all use on a daily basis. What specifically about the details of investing that are unique to Warren and Berkshire Hathaway (and all other large investors) is that they buy when the prices extraordinarily low. The way he puts it is that everything is on sale, and the time to buy is when things are cheap and not when they are expensive. The other style of his investment includes understanding the business model. So in the case of the American Express company, of which Berkshire Hathaway bought 17% of the company last year, Warren knows that they have a stable business model which is based on fixed percentage rates of return from loaning relatively small amounts of money to a large number of people.