The Greatest Investors: Warren Buffett
|Born:||Omaha, Nebraska, in 1930|
|Most Famous For:||Referred to as the "Sage" or "Oracle" of
Following the principles set out by Benjamin Graham, he has amassed a personal multibillion dollar fortune mainly through investing in stocks and buying companies through Berkshire Hathaway. Shareholders in Berkshire Hathaway who invested $10,000 in the company in 1965 are above the $50 million mark today. Now in his 70s, Buffett has yet to write a single book, but among investment professionals and the investing public, there is no more respected voice. (To learn more, read Warren Buffett: How He Does It and What Is Warren Buffett\'s Investing Style?)
In 2006, Buffett announced that he would pledge much of his reported $44 billion in stock holdings to the Bill and Melinda Gates Foundation ($31 billion) and four other charities ($6 billion) started by members of his family. (For more insight, see The Christmas Saints Of Wall Street.)
He then returned to
Wanting to work independently, Buffett returned home once again to
It was in the 1973-74 market collapse that Berkshire got the opportunity to purchase other companies at bargain prices. Buffett went on a buying spree, which included an investment in The
Warren Buffett's investing style of discipline, patience and value has consistently outperformed the market for decades.
John Train, author of "The Money Masters"(1980), provides us with a succinct description of Buffett's investment approach: "The essence of
Buffett's criteria for "wonderful businesses" include, among others, the following:
Buffett has not, as yet, authored any books. However, his annual letters to the shareholders in Berkshire Hathaway's annual report are a suitable substitute. Back copies of these 20-page masterpieces of investing wisdom are available from 1977 through 2006 (updated annually) from Berkshire's Website.
The Greatest Investors: David Dreman
"Rule No.1 is never lose money. Rule No.2 is never forget rule number one."
"Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner."
"All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies."
"Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it."
"If, when making a stock investment, you're not considering holding it at least ten years, don't waste more than ten minutes considering it."
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