Berkshire's way of investing
Our best insights on replicating the phenomenal investing outcomes achieved by the company
Berkshire Hathaway is a holding company that is run by Warren Buffett. It started off as a textile manufacturing company when it was founded in 1839. In 1962 Berkshire had 15 plants, 12,000 workers and they had over $120 million in revenue. And along came Warren Buffett. Buffett started by investing in Berkshire Hathaway by buying shares and then took control of the company at a board meeting.
Today, Berkshire Hathaway is a holding company that Warren Buffet invests through. And the myth around Buffett is that he is the world’s greatest allocator of capital. He is known for his phenomenal returns – an annualised return of 19.8% from 1965 to 2023, compared to 9.9% for the S&P 500.
There are many concepts borrowed by Buffett for Morningstar’s investment philosophy. Here are some of the best lessons that we learned from Buffett, Munger and Berkshire Hathaway that investors can consider for their investment strategy.
I ignored Buffett's advice and it cost me, Joseph Taylor: Warren Buffett has three main criteria for buying a business but most investors only focus on two of them.
Buffett’s most misunderstood quote, Mark LaMonica: My biggest investing mistake is encapsulated in a Buffett quote that many investors take too literally.
Exploiting Warren Buffett, James Gruber: Growth investors are using Buffett to justify buying blue chip stocks at almost any price. It’s a recipe for potential disaster, as investors in market darlings like CBA and Cochlear may be about to find out.
How to find a great company to buy, Mark LaMonica: Over the long-term the secret to successful investing may simply require identifying and buying great businesses. Here is how to do it.
Even Warren Buffett lost his edge 20 years ago, Ashley Owens: Even the fund managers who have out-performed since inception peak early, then suffer declining out-performance after that. It’s a guaranteed slide into mediocrity, even for greats like Warren Buffett, who peaked decades ago.
Why Berkshire Hathaway’s success will continue after Charlie Munger ... and Warren Buffett, Greggory Warren: Munger’s passing is a spiritual loss for the company, but we look at whether it impacts the future of the company.
Key takeaways from Warren Buffett’s 2023 letter to Berkshire Hathaway’s shareholders, Susan Dziubinski: Warren Buffett on Charlie Munger, realistic investment expectations, and the stocks he won’t sell.
The wisdom of Charlie Munger, Mark LaMonica: 5 Munger quotes to make you a better investor. You can also listen to the podcast episode here.
