Berkshire Hathaway, run by investment veteran Warren Buffett as CEO and chairman, made history on Aug. 28th when its total market value crossed $1 trillion for the first time — ever since Apple doing so in recent years — to become only the second non-tech company after tech giant has reached that level. This decision was then accompanied by a timely sell-off of nearly 50% in Apple stock and paved the way for the company to eventually plant up an enormous $280 billion cash reserve.
Buffett, Berkshire Hathaway and a lifetime wealth of investing
Career Beginnings:
- Buffett launched his career as an investment analyst for The Buffett Partnership, then worked at his father's brokerage and Graham-Newman Corp.
- So he was millionaire at the age of 30.
- In 1965, he joined Berkshire Hathaway Inc. upon acquiring the old textile company that Warren Buffett ran from some common stock investors who were catching a falling knife and wanted out before they cut themselves or worse…war broke-out in 'Nam!
Value Investing Philosophy:
- Buffett Is A Value Investor: Buying Stocks That Are Undervalued And Priced Too Low For It's Own Good
- He seeks to acquire these stocks for years of returns.
Diversification Strategies:
- Buffett hardened Berkshire Hathaway's investments by acquiring companies with substantial moats, like GEICO or Coca-Cola and Duracell.
PRINCIPLES OF INVESTMENT AND STYLE:
- Buffett classifies investment opportunities into one of three categories: “yes,” “no” and — for the challenging ones to understand — dead.center-of-the-3-circles.
- Although he shunned technology stocks at first, the strength Apple has maintained in its market position became a "moat" for Fink later on.
About Berkshire Hathaway:
- Berkshire Hathaway, founded in 1839—an example of a decentralized conglomerate; included among its companies are GEICO and Duracell.
- The firm is a long-term-play oriented investment vehicle with "A" shares of the company priced at over $500,000/share.
Month: Current Affairs - September 07, 2024
Category: