The person who took control of the struggling textile company in 1965 and created it in the largest organization in the world, valued at $ 1 trillion, with an annual tax operating paying earnings, which lags behind investment legacy that has shaped shareholders and officials’ pay -generations.
10 lessons from a long career
Buffett’s track record is full of principles that investors continue to study and discuss. Here is the most durable lesson:
1) Don’t pay too much for stocks. Buffett rarely buys on 15 times ahead of earnings, the discipline he maintained in high profile bats like Coca-Cola a decade ago and in the late 1980s.
2) Take a profit when needed. While he has long preached the “permanent” investment, Buffett has made the main position in Apple Pal, Bank America, JP Morgan Chase, Goldum Sachs, City Group and Paramount Global. Only Coca-Cola and American Express seem to be a true long-term hold.
3) Stick to what you know. Its portfolio and fully owned businesses are most part of today’s tech-havi market, leaning on old economics main-instruments, railways and utilities.
4) Start early. Buffett’s investment journey began with the purchase of selected stocks in cities in 1942 at the age of 12.
5) Learn from great teachers. He studied under Ben Graham, a valuable pioneer at Colombia Business School and worked in Graham’s investment company before leaving himself.
6) Focus when the conviction is high. At the end of the second quarter, about 70% of the billion of billion $ 300 billion equity portfolio made of five stocks-American Express, Apple Pal, Bank America, USA, Coca-Cola and Chevron-Barkshire. Buffett itself has more than 99% of its net price in Berkshire stock, now a billion of $ 150 billion.
7) Hire strong managers and trust them. Berkshire has long given unusual autonomy to the leaders of its supporting companies, which is a specialty of Buffett’s management style.
8) Don’t retire too soon. 65 turns did not slow it; Since then Berkshire’s shares have been thirty times. Buffett has long said that the traditional retirement is not for his or his high officials.
9) Protect shareholders from dilution. Berkshire has avoided issuing stock for acquisitions and has never given a stock-based return, the stock count is about 40% since 1965.
10) Love what you do. Buffett described his daily routine as “Dancing in Office Fissure”, he plans to maintain a passion because he remains president of Berkshire and continues to work every day in 2026.
Berkshire
At the Berkshire’s annual meeting in May, Buffett told shareholders that they plans to be active in the Office Fissure outside the CEO transition. Investors, who have seen the stock of Berkshire under their leadership, have been counting them for being involved for years to come.
For now, Buffett turns 95, both Berkshire shareholders and fans are left with celebrations and reminders: his lessons like his legacy are made for long distances.
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