It’s my thesis market returns over the next few years are unlikely to match what we’ve seen over the past decade. However, I’m also of the view that will create great opportunities for savvy patient investors who think long-term. This missive defines what is meant by “quality” investments – and the attributes investors should focus on. And if we are see a more challenging climate the next few years – it’s higher quality assets which will shine.
Warren Buffett
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How Buffett Built a $1.1 Trillion Cash Machine
Whilst market’s fret about slowing growth (“Ready for a Growth Scare?”) – Warren Buffett sits back with a smile. His company – Berkshire Hathaway – rallied to fresh record high this week after the company reported a record high quarterly profit. Its market value is now over $1.1 Trillion. So how did Buffett build this incredible cash machine? I’ll outline three (basic) reasons… all of which you can emulate.
Buffett: “Often, Nothing looks Compelling”
Saturday Feb 22nd was circled on my calendar. It was the day Warren Buffett shared his annual shareholder letter. If you want to become a better long-term investor – it’s worthwhile reading every one of his 59 letters (from 1965). With respect to valuations he offered this: “We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings. Often, nothing looks compelling; very infrequently we find ourselves ‘knee-deep’ in opportunities.”