If you know anything about investments, you’ve probably heard of Warren Buffet. And even if you don’t, you’ve also probably heard of him.
The wealthiest investor in the world is also the most famous. In the span of a career spanning more than 70 years, the 90 year old has seen his wealth rise and fall steeply.
Warren Buffet Net Worth:$147 Billion
In a testament to his buy-and-hold investment philosophy, over the long term he has become the seventh richest individual in the world with a net worth of over $147 billion as of November, according to Forbes.
Buffett’s Berkshire Hathaway investment company seeks out companies undervalued by the stock market which may take decades to truly prove their worth. It also values resilience and persistence, in the face of market sell-offs or errors. This has enabled it to return an average of more than 20% per year for more than five decades
Perhaps ironically, the fate of Berkshire Hathaway – a former textile company which Buffett took over starting in 1965 – is a good example. He bought stock in the firm at a depressed valuation, in line with this value-focused investment approach, yet felt himself to be swindled by prior owner Seabury Stanton, making it in his view the “dumbest” stock he ever bought.
Much of Buffet’s success comes from building up cash and using it to buy companies at depressed valuations when the economy takes a turn for the worst. One notable example was his decision to buy stock in Goldman Sachs during the 2008 financial crisis, making a profit of $3.7 billion within three years.
Among Buffett’s best long-term investments are Coca-Cola, American Express, Moody’s and Apple. As of 2021, Apple Coca-Cola Company and Bank of America Corporation represented more than half of the total investment profile of Berkshire Hathaway.
This attitude is summed up in his oft-quoted motto “be fearful when others are greedy and to be greedy only when others are fearful.”
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
