In 1965, a young Warren Buffett took
control of a struggling textile
manufacturer named Berkshire Hathaway
(NYSE: BRK-B) and used its excess cash
flows to make shrewd investments. His
success has been legendary -- of the
last 43 years Buffett has spent with
Berkshire, how many times has the
company's stock outperformed the S&P 500
on a yearly basis?
A.) 22 Times
B.) 30
Times
C.) 35 Times
D.) 37
Times
E.) 43 Times
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Published:
February 7, 2008
The
correct answer is
(D.) 37 TimesThat's right -- over more than
four decades, Berkshire shares have
outperformed the S&P an amazing 37
years (86% of the time)! Warren
Buffett's long track record of
success is unprecedented -- just
$10,000 invested in Berkshire in the
1960s would be worth more than $36
million today. That's more than a
+361,000% gain.
Buffett's Philosophy
Berkshire's performance is proof of
the wisdom and value of Buffett's
approach. Of course, it's impossible
to distill all of his wisdom neatly
into any book or article. But
Buffett's investing methodology is
far from a total mystery. His
lengthy annual letters to
shareholders and required
disclosures offer a look at the
types of stocks that interest him,
and he has made no secret of his
basic methodology and the people
that have influenced his style. And
by studying these factors, Editor
Paul Tracy of the
StreetAuthority Market Advisor
was able to shed some light on what
makes a stock worthy of Buffett's
time and money.
In a recent issue, Paul detailed
many of the attributes Buffett looks
for -- everything from margin of
safety to high returns on equity --
and explained why each one is
important. Then he and his staff
pored over Berkshire's recent
filings with the U.S. Securities and
Exchange Commission (SEC) to find
exactly what the "Oracle of Omaha"
was buying right now. Paul offered
in-depth profiles of each firm,
explaining exactly why Buffett likes
them and why you may want to put
your money in these securities as
well.
So if you want to start investing
like Warren Buffett, you need to
subscribe to
Market Advisor today! To
learn more, please
visit this link.
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