Legendary Investor – Warren Buffett does it again!
Billionaire investor Warren Buffett, has once again beat the odds in Wall Street. Where most investors are hiding for cover and selling their positions, he is quietly buying up the companies that he believes will stand the test of time.
photo credit: trackrecord
The Omaha conglomerate – Berkshire Hathaway run by Warren Buffett said the 2007 reports returned a “per share” book value of 11% from the previous year. Berkshire Hathaway has been averaging a 21.1% rate compounded annually since 1964. As an aside a $1,000 invested in 1964 compounded annually at 21.1% rate would be equivalent to $3,760,089.26 in 2007.
So, how does he do it?
Warren researches the financial reports and statements of companies that he’s interested in buying. He lives and breathes financial reports. It was said that he doesn’t care about what the market does as he is interested in the long term and not the short term. When he invests he always sees what the future value of his money is than what it is valued today. So much so, that he often hangs on to his investment – Warren knows that if the business is good and it makes business sense he never ever sells the stock.
There are many other reasons why Warren Buffet doesn’t want to sell his holdings, especially if it makes business sense to do so… but that will have to be for another post. 
