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Warren Buffett - Berkshire Hathaway

  • Updated August 16, 2024

Profile

Company: Berkshire Hathaway || Position: Chairman, CEO ||

Employment date: 1965 || Web site: https://www.berkshirehathaway.com/

There is hardly a name in the investment world that is better known than Warren Buffett. The man who for half a century has symbolized value investing with an insatiable appetite for learning and understanding the world around him. This has earned him the nickname “The Oracle of Omaha” after his American hometown, where he continues to run his company, Berkshire Hathaway Inc.

The immediate reason for Buffett’s status is very naturally his decades-long track record of beating the major indices. But just as important is his humble personality combined with a genuine desire and ability to communicate his investment philosophy to anyone willing to listen. And many of us would like to.

Buffett studied under the legendary Benjamin Graham at Columbia University, where he had a major influence on Buffett’s life and investment philosophy. A lifelong investor, Buffett became chairman and CEO of Berkshire Hathaway in 1970 when he took over majority control of the company. He has spent the last 50+ years at the helm of Berkshire, transforming the company from a struggling textile company to one of the world’s largest and most successful conglomerates.

While Buffett is known to most as an investor, it’s worth mentioning that he is just as much a businessman. Buffett has in many cases bought up unlisted companies, has always been in dialog with the directors of his companies and has himself held a number of board and executive positions over the years.

Investment philosophy

At the start of his career, Warren Buffett worked with his mentor Benjamin Graham, considered by many to be the father of value investing. In line with this, the first several years were characterized by a hunt for companies that were traded at a share price far below the company’s fundamental value.

Back in the 1950s, there was far less transparency in the market, for example, company data had to be ordered from the company itself and sent by physical mail and many companies were traded at prices far below their book value of physical assets. These companies were called ‘cigar butts’ because there was one last puff left before they could be converted or liquidated and Graham and Buffett could take the profits.

Over time, Buffett’s strategy has changed to focus on discipline, patience and price. He seeks to buy excellent companies at fair prices, rather than fair companies at excellent prices. In practice, this means that Buffett looks for companies that he can buy at a share price below the company’s fundamental value and hold them for a very long time. Buffett only buys companies he understands and always requires a margin of safety.

According to Buffett himself, he wants to invest in the company as (a) he can understand, (b) with the prospect of favorable and long-term value creation, (c) run by honest and competent people; and (d) available at a very attractive price.

Portfolio

Portfolio reported: 30/6-2024

Portfolio published: 16/8-2024

Number of companies: 41

Portfolio value (USD 1000): 279,969,062

The data below are all publicly traded shares in Berkshire Hathaway. In addition, Berkshire owns a large number of unlisted companies and typically has another 10-20% of its total capital in cash or short-term bonds.

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