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Berkshirehathaway

REST IN PEACE to one of the greatest financial mindsCharlie Munger right hand man to investment giant Warren Buffett has passed away on the 28 November 2023, born 1 January 1924. Not only was he an investment wiz he was great at behavioral psychology. He started his investment career in 1962 working as a real estate attorney which he gave up to pursue investment management along side Otis Booth, he later went on to form an investment firm with Jack Wheeler to his own firm to 1975. 1978 when he started working closely with Warren Buffett on BERKSHIRE HATHAWAY which owns businesses with a networth of 782.64BILLION in different industries and they have since made an average annual gain of 20.1% every year till 2022, and has made a personal wealth for himself of 2.6 billion. He considers himself to be a value investor ( investment strategy where investors identify stocks whose prices don't reflect what they are really worth) . Charlie also was a long term investor looking at companies that were high in value and also had the potential to continue increasing in value by holding for a long term compounding gain. some of his best qoutes are : -the best way to get what you want is to deserve what you want. -all intelligent investing is value investing -the world is not driven by greed but by envy. the investment community suffered a great loss, Charlie is really one of the greats, showing it pays to be patient and the importance of portfolio diversification. what have you learned from Charlie Munger yourself? put together by : Pako Phutietsile ( @currencynerd )
NYSE:BRK.AEducation
by currencynerd
Price is what you pay, but value is what you getWarren Buffett is the most successful stock investor in the history of the world. Of course, which we know now. "The Oracle of Omaha" - that's what fans of his "magical instinct" call Buffett. But is that the point? As an 11-year-old child, little Warren was inspired by the possibilities of the stock market and invited his sister to participate in his first investment. These were preferred shares of Cities Service. The sister agreed to take the risk and Warren bought 3 shares at $38.25. But then, the wave of enthusiasm turned to disappointment and guilt - the shares fell to $27. Buffett's first investment "enterprise" lost 29% of the amount of investments that were borrowed. We can only imagine how the young investor felt at that moment, but I think this feeling is familiar to many: positive expectations clashed with the harsh reality of the stock market. Warren didn't sell shares. But when the price for them reached $40, he did it instantly. Apparently, considering this whole undertaking a mistake. The income was 4.6%, the sister received her money back. Everything worked out. Surprisingly, Cities Service's share price rose to $202 a few days later. Or +428%, Warren! The entire subsequent history of Warren Buffett confirms that he drew the right conclusions from the experience of his childhood. He realized that the price on the stock exchange may not reflect the value of the company itself. Buffett began to study accounting, the principles of fundamental analysis of enterprises, the ideas of Benjamin Graham. This allowed him to develop an approach that consisted in determining the real value of the company, different from the one that we see on the stock exchange. "Price is what you pay, but value is what you get". From myself I will add: and if the value is higher than the price - such an investment is considered reasonable. In the chart above, the price history of Buffett's main holding company, Berkshire Hathaway . As well as the S&P500 index. As you can see, his company "overtakes" the index, which means it shows much better performance than the average value of 500 US companies. Perhaps, in addition to deep analysis of the companies' business, Buffett's unique investor instinct helps, I don't know. But the fact that he is a real Wizard of our time is an indisputable fact for me.
NYSE:BRK.AEducation
by Be_Capy
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