Warren Buffett just turned 94, and his storied conglomerate, Berkshire Hathaway, is stronger than ever.
This week, Berkshire became the first non-tech company to break the $1 trillion market cap barrier, with Class A shares topping $700,000 each—a milestone that cements its place among the giants.
Howard Marks, a renowned investor and close friend of Buffett, attributes this success to three key traits: strategy, discipline, and insight.
“It’s been seven decades of unwavering focus,” said Marks, co-founder and co-chairman of Oaktree Capital Management. “Without Buffett’s unique insight, he wouldn’t be hailed as the greatest investor in history.”
Buffett’s journey with Berkshire began in the turbulent 1960s when he acquired a failing New England textile mill.
Today, Berkshire is a business empire, encompassing everything from Geico insurance to BNSF Railway, an equity portfolio exceeding $300 billion, and a staggering $277 billion in cash reserves.
Buffett’s investment moves have inspired generations.
His early bet on Coca-Cola exemplified patient value investing, while his decisive action during the financial crisis, injecting capital into Goldman Sachs, showcased his opportunistic side.
More recently, his embrace of Apple highlighted his adaptability, proving that even a veteran can thrive in the new age.
Earlier this month, Buffett made headlines by selling off half of his Apple holdings, signaling the end of one of his most lucrative trades.
Despite Apple being seen as a growth stock, Buffett’s mantra remains the same: all investing is value investing, where “you put out some money now to get more later on.”
Over the decades, Buffett’s disciplined approach has yielded extraordinary returns.
From 1965 through 2023, Berkshire shares have delivered an annualized gain of 19.8%, nearly double the S&P 500’s 10.2% return.
Cumulatively, Berkshire’s stock has skyrocketed by an astonishing 4,384,748%, compared to the S&P 500’s 31,223% gain.
“He’s the most patient investor ever, and that’s been key to his success,” remarked Steve Check, founder of Check Capital Management. “Even at 94, he’ll sit tight until he feels the time is right.”
While Buffett remains at the helm as chairman and CEO, much of the day-to-day operations are now handled by Greg Abel, vice chairman of Berkshire’s noninsurance operations and Buffett’s designated successor.
Earlier this year, Buffett confirmed that Abel, 62, will take over all investing decisions when the time comes.
Marks, who has long admired Buffett, shares a similar approach to investing. Like Buffett, he’s indifferent to market timing and macro forecasting, instead focusing on value and staying within his circle of competence.
“When others panic, Buffett marches in. We aim to do the same,” Marks said.
Oaktree Capital, with $193 billion in assets under management, has become a major player in alternative investments, specializing in distressed lending and value investing.
Marks’ investment memos, which he began writing in 1990, are now required reading on Wall Street, even receiving praise from Buffett himself.
The two were introduced after the Enron bankruptcy, and Buffett’s encouragement led Marks to publish his book, “The Most Important Thing,” earlier than planned.
“Without his inspiration, that book might not have been written,” Marks revealed.
Buffett’s continued passion for investing, even in his 90s, resonates deeply with Marks.
“He says he skips to work every morning, tackling investing with joy,” Marks shared. “I haven’t retired, and I hope never to, following his example.”
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