We all have people we admire who have taught us a lot about life and our passions. For me, that passion is investing.
I’ve spent years studying Warren Buffett, devouring every book I could find about him. Over time, I’ve come to deeply appreciate his rational thinking and his philosophy both on investing and life.
Known as the ‘Oracle of Omaha,’ Warren Buffett transformed a struggling textiles business into one of the largest companies in the world. It’s truly one of our time’s greatest “good-to-great” stories.
A huge thank you to our Managing Director Tony Byrne for organising the trip to Omaha.
Listening to Warren Buffet share his profound wisdom on life and investing was truly inspiring.
Listening to Warren Buffet answering questions
Seeing Warren Buffet in person was surreal. Even though the legendary Charlie Munger had passed away before the meeting, as Buffet aptly put it, Charlie was the “architect” of present-day Berkshire and Buffet acted as the “general contractor” to bring Charlie’s vision to life.
Receiving a present from Warren Buffett
Buffet’s timeless advice emphasises the importance of surrounding yourself with the right people and ensuring you marry the right person.
Buffett was surrounded by great people like Charlie Munger who enabled him to make rational decisions.
We all have blind spots in our minds which prevent us from seeing things accurately. So when you surround yourself with people who think differently from you, you’re able to see things from a different perspective and Charlie to Warren were pretty much the same.
He believes that management is key to long-term business success. Invest in management you trust with unquestionable integrity and vision.
At the Berkshire Hathway shareholders meeting with the team
One of his famous quotes that resonates with me is “An investor should act as though he has a lifetime decision card with just twenty punches on it.”
Another gem is “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
And perhaps one of the most meaningful “If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”
Don’t wait to meet the people you admire until it’s too late. Find ways to connect with them early and often.
Approach stocks as businesses and you’ll perform much better over time. Invest in businesses with ample reinvestment opportunities.
Avoid chasing the next big thing and make rational, long-term decisions.
Finally, Buffet as usual advised to stay invested for the long run. Time in the market beats timing the market.
He is right according to Hartford Funds. If you missed the 20 best days of investing in the S&P 500 over the last 30 years, your returns would be 73% less. Missing the 30 best days would reduce your returns by 83%. In order to catch up with the S&P 500 index, you would need a gain of 488%.
Therefore, it is always important to have a long-term perspective, to protect your thoughts from fear and greed and not let short-term headlines consume your thoughts and prevent you from making long-term decisions.
The Berkshire Hathaway meeting was more than just about investing; it was a profound experience that left me with invaluable insights about life.
Awet Ghirmay, Head of Investment Research
If you want to learn more about this topic, please find the link here.
More information about our fund can be found here: Hargreaves Lansdown or AJ Bell
Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
