Stock god Warren Buffett & Berkshire Hathaway

When it comes to investment masters, I believe there are no investors who do not know the famous stock god Warren Buffett.

In this lesson, we will introduce Buffett's investment philosophy, investment story and the performance of Berkshire Hathaway, his investment institution.

Buffett was born in Omaha, Nebraska. He has been fond of numbers games since childhood, has a great sense of investment, and is full of ways to make money.

Buffett sold chewing gum door to door at the age of six. When he was a little older, he led his friends to the course to pick up used golf balls and resell them, and the business was quite booming. When he was in middle school, in addition to working as a newsboy in his spare time, he partnered with friends to rent pinball games to barber shop owners to earn extra money.

Buffett believes in the concept of "value investment". He believes that investors should not pay attention to daily ups and downs or worry about changes in the overall economic situation, but should focus on "finding outstanding companies." he believes that as long as the company has intrinsic value, it will be reflected in the stock price sooner or later.

Buffett set strict standards on how to "find a great company." He does not invest in companies he does not understand, but favors stocks with sound operations, excellent management, high return on equity, stable free cash flow and a safe margin relative to market prices.

Buffett has invested in many great companies in his investment career, and the best-known of them is Coca-Cola Company, a beverage company.

Buffett first invested $1.023 billion in Coca-Cola Company in 1988, and then continued to increase his positions. by 1998, the market value of Coca-Cola Company had reached 13.4 billion, a tenfold increase in a decade.

By the second quarter of 2022, Coca-Cola Company was Berkshire's third-largest stock, with an 8.11% stake and a market capitalization of about $25 billion.

It should be noted that when Buffett bought Coca-Cola Company, it was the low level after the US stock market crash in 1987. At that time, many people were not optimistic about his decision, but he firmly held it for a long time, which really reflected "other people's fear and greed."

Barao's success is beyond doubt. Berkshire's compound annual return was 20.1% between 1965 and 2021, compared with 10.5% for the S & P 500 over the same period.

However, people who are not saints can be infallible, across the stock market for decades, Pakistan has also encountered embarrassing setbacks.

For example, when US stocks plummeted in February 2020, Buffett "bottomed" Delta at $45 a share. By early April, Buffett had to reduce his stake in the stock at $26 a share and cut meat in just 33 days.

Berkshire Hathaway, run by Buffett, is now closely watched and followed by global investors.

It should be noted that copying the boss's homework does not guarantee success, what is more important is to learn the experience and methods of investment masters and integrate the talents of a hundred experts for their own investment practice.