Warren Buffett: This is the greatest measure of success in life
The provided text outlines Warren Buffett’s exceptional track record of outperforming the S&P 500, dating back to 1965 when he assumed control of Berkshire Hathaway. Berkshire Hathaway’s compound annual return under Buffett’s stewardship stands at 19.8%, significantly surpassing the S&P 500’s 10.2%. Buffett’s success stems from his strategy of investing in outstanding companies at reasonable prices, which provides downside protection and potential market outperformance.
The text highlights Buffett’s investment philosophy, emphasizing his focus on enduring companies such as Apple, Bank of America, American Express, and Coca-Cola, which form a significant portion of Berkshire Hathaway’s portfolio. Additionally, Buffett recently invested in Occidental Petroleum and Liberty SiriusXM, praising their management teams.
Interestingly, Buffett considers Berkshire Hathaway itself as the ultimate investment, citing its diverse business portfolio, including insurance, railroads, utilities, and energy sectors. He believes Berkshire’s conservative financial approach and diverse revenue streams mitigate the risk of permanent capital loss, positioning it favorably compared to other corporations.
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