Berkshire Hathaway founder and chairman Warren Buffett is known for his wealth of investment advice over the years. Known for his long-term approach to stocks, sticking to fundamentals and thoughtful but thoughtful risks, his nuggets of wisdom make the rounds on social media from time to time.
This includes Buffett’s emphasis on simplicity, weighing the pros and cons, and holding stocks to see the upside rather than selling at the first spike.
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Quote of the day from Warren Buffett
“It pays to have the right (role) models. I was very lucky, very early on in life, to have certain heroes and I’ve continued to develop a few more along the way. They’ve been great and they’ve never let me down. (Life) takes you through a lot and I think it’s only logical that very early on you copy people you look up to early enough and especially look up to.”
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What does Warren Buffett’s quote mean?
Buffett’s statement, made at the annual general meeting (AGM) of his company Berkshire Hathaway several years ago, emphasizes the need to learn from the masters.
Ace Investor Advice states that life is a learning curve and you also learn from those you surround yourself with, especially at a younger age.
The ‘Oracle of Omaha’ himself said that it was longtime friend and business partner Charlie Munger (seven years his senior) who helped him develop a philosophy of investing in companies for the long term. He credited Munger with shaping Berkshire Hathaway’s investment style and steering the younger Buffett away from cheap butt stocks and into high-quality businesses at fair prices.
In another interview with CNBC, Buffett also noted that while some investors may lack the temperament and be “emotionally or psychologically unfit” for the ups and downs of stock ownership, it wasn’t impossible.
“I think there will be more if you educate yourself on what you’re actually buying, which is part of the business, and the longer you hold the stock, the less risky it becomes,” he believed.
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Who is Warren Buffet — the ‘Oracle of Omaha’?
Warren Buffett, along with friend and business partner Charlie Munger, were the architects who transformed Berkshire Hathaway Inc. over nearly 60 years. from a failing textile manufacturer to an empire worth billions. Decades of compounding returns have made the pair of billionaires and folk heroes adoring investors.
Notably, in January of this year, Buffett handed over the reins and the position of CEO to successor Greg Abel. However, his “bull run” with Berkshire is legendary – over 60 years (1964-2024), he generated over 55,00,000% returns, built the group to $1.2 trillion and expanded its Class A shares to a value of $167 billion.
Known as the ‘Oracle of Omaha’ for his mysterious stock forecasting, Buffett gained fame and investor confidence by picking companies (Apple, Bank of America, Coca-Cola, etc.) that exploded and now make up 70% of Berkshire’s $263 billion stock portfolio. He called it how “one great deal can balance out the many mediocre decisions that are inevitable”.
Buffett’s net worth is estimated at $152 billion, making him the 10th richest person in the world, according to the Bloomberg Billionaire Index.