Most of you know Warren Buffett. He’s the guy who turned his paper route money into billions of dollars. There are people who think he is a one of a kind investor and he has a magic formula that makes him tons of money. But he is just really good at what he does and he’s been doing it for long enough that mistakes are few and far between.
The great news is, you can invest like Warren Buffett. His secret is not so hard to duplicate. I’ve read enough about him to know what he does that’s so great. It’s actually one of our 9 Tips for Successful Investing.
This is a chart of the returns of Berkshire Hathaway vs. the Dow Industrials from 1965 to 1995. It can be found in the book Buffett: The Making of an American Capitalist 
As a kid, Warren was always thinking of ways to make money. He was a caddy for $3 dollars a day and started a paper route as a young child. Once he began studying under Benjamin Graham he began to value invest. He researched companies that he believed to be undervalued by the market. Meaning, the price was cheaper than the real worth he assessed.
He would dive into financial statements and estimate the share price using the information he found in those statements. He replicated this process again and again over the years. He purchased ownership in Berkshire Hathaway and began to use that company to buy other companies. He is known as one of the greatest investors of all time because of his systematic investments.
There’s a really good resource at www.buylikebuffett.com. It’s a financial blog that delves more into value and dividend investing. They even talk about if it’s time to sell Berkshire Hathaway because there will never be another Warren Buffett. What about you? Do you think Warren Buffett’s style of investing is dead?
For more on Warren Buffett see
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14 comments
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SB (One Cent At A Time) says:
July 25, 2011 at 12:11 pm (UTC -4 )
He’s my idol, I follow his every communication to press diligently.
Julie @ The Family CEO says:
July 25, 2011 at 1:53 pm (UTC -4 )
It’s hard to beat Buffett’s advice. I’m not an active investor (so far I’ve stuck to mutual funds) but I did buy one share of his Baby Berskhires just to say I did. I should check to see how that’s doing!
LaTisha says:
July 25, 2011 at 11:30 pm (UTC -4 )
It’s just crazy to me how he turned a retail store into an investing powerhouse. After reading that book I realized that a business can simply buy other business as it’s business. (Did that make sense? lol)
Freddie @ Invest With Passion says:
July 25, 2011 at 2:34 pm (UTC -4 )
Obviously Buffet is awesome. I am really glad there is so much hype around him because my son’s junior high has started a course to study Buffet. Well not a course, but an after school study group.
They read his book and talked about life from the perspective of investing wisely and starting businesses. It is a great eye opener for him.
LaTisha says:
July 25, 2011 at 11:29 pm (UTC -4 )
Awesome! Yeah, I learned lots from the book I read. I like his style of investing but I also combine it with my personal style as well.
World of Finance says:
July 25, 2011 at 9:19 pm (UTC -4 )
Hi FSYA! I’m new to Yakezie and just wanted to stop by to say hi. I look forward to reading more of your work and perhaps picking up a few new investing tips.
LaTisha says:
July 25, 2011 at 11:27 pm (UTC -4 )
Hi World of Finance! Thanks for stopping by, I really like your blog design by the way
Kanwal Sarai - Simply Investing says:
July 25, 2011 at 10:24 pm (UTC -4 )
Great post! I think Warren Buffett’s style of selecting quality stocks when they are undervalued isn’t dead. In fact I think his style has stood the test of time. He has an incredible track record.
LaTisha says:
July 25, 2011 at 11:27 pm (UTC -4 )
Yeah, if only I could have gone back to trade what he traded when he traded…
Hunter says:
July 26, 2011 at 12:29 pm (UTC -4 )
He is an inspirational charcter. I don’t think his style of investing is dead at all. There is clearly a lot of upside from his systematic approach. Doing the work by pulling through the financials to really understand what is going on in a business, and choosing the ones with a strong market advantage, seems easy enough but obviously takes considerable skill.
Jeff @ Sustainable Life Blog says:
July 26, 2011 at 12:45 pm (UTC -4 )
He’s got some great investments and I’d enjoy being able to invest like that. Right now, i’m just investing in myself by de-leveraging
retirebyforty says:
July 26, 2011 at 3:58 pm (UTC -4 )
I think value investing will always have a place in any portfolio. Buffet and Munger will be difficult to replace that’s for sure.
Niki says:
July 27, 2011 at 9:37 am (UTC -4 )
Oh, Warren Buffett is a great person to try and emulate. He really knows his stuff.
Evan says:
July 28, 2011 at 3:15 pm (UTC -4 )
I think value investing is alive and kicking! Will there ever been another Warren? Will there ever be another Michael Jordan? Probably not, but basketball went on!
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