Rumors speak of a man in Omaha with god-like investing prowess. His legend is constantly examined by professional, professors, and even the media pundits. His 70+ years of investing and straightforward strategy is often cited as the gold standard for experts and amateurs alike.
So last month during a visit to mythical Nebraska, I decided to pay a visit to one of investings’ greats, and perhaps have a cup of coffee and compare approaches. But upon pulling up to his very pedestrian home (which was distinctly lacking in moats and drawbridges) I was too chicken to get out of the car, much less knock on the door!
My “visit” to Warren Buffett, the Oracle of Omaha, did get me thinking about his contribution to modern investing strategy. As complicated as that might sound, Buffett’s greatest skill may be his simplistic approach to portfolio design and investing overall. These insights are consistently shared with those opting to invest in his company Berkshire Hathaway, via the annual shareholder’s meeting (or Woodstock for Capitalists as it is affectionately called). In light of last week’s meeting, let’s take a look back at three of Buffett’s best investing principles.