Düsseldorf The motto of the two American stock exchange legends is as simple as it is clear: “We only buy what we understand. If something is too difficult, we turn to something else. “
Warren Buffett and his lesser-known partner Charles Munger have followed this strategy for more than five decades. Their success proves them right: the value of their Berkshire Hathaway stock, in which they have combined their holdings, has risen from $ 19,000 to over $ 300,000 in the past 54 years. That corresponds to an annual return of around 20 percent. This rapid rise in price made Buffett a billionaire – and many early shareholders millionaires.
So much success over such a long period is unique and has earned worldwide recognition. Growing up in the small town of Omaha, Nebraska, Warren Buffett became interested in making money from an early age. When he was six he bought a six-pack Coca ColaBottles for a total of 25 cents. He sold every single bottle for five cents. He pocketed the net profit with a proud net return on sales of 20 percent.
His first business with the dark shower, of which Buffett is now the largest single shareholder, he quickly expanded with the sale of golf balls, popcorn and newspapers. Buffett bought one in 1947 Rolls-Royce for $ 3,500, which he rented for $ 35 a day. His photographic memory made it easier for him to study business administration, which he had now taken up, and gave him enough freedom to earn more and more money – increasingly with shares and the purchase of entire companies.
For this purpose, Buffett founded the “Buffett Partnership” in 1956. He bought company shares, which he divided into three categories: majority stakes with influence on corporate governance, long-term investments in undervalued stocks and, thirdly, the purchase of insolvent companies. After the dissolution of this first company, Buffett founded “Berkshire Hathaway”, with which he took over more and more shares in companies, including shares in Coca-Cola, Gillette and American Express.
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