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Warren Buffet did not make his fortune as an absentee investor playing the stock market. Not even close. He invested one-on-one, in businesses he thoroughly un
by bouncing 8y ago
Warren Buffet did not make his fortune as an absentee investor playing the stock market. Not even close.
He invested one-on-one, in businesses he thoroughly understood, after a lot of research and understanding of the business. Think less scanning a spreadsheet or stock data and more CNBC's "The Profit" -- walking around a factory floor, looking through accounts receivable, talking to the assembly team, talking to customers. THEN making a decision to invest a lot of money and steer the direction of the business.
- quietthrow 8y agoI doubt he was walking through the factory floors of every company he considered. That kind of approach can’t scale. I think he might have done something like that but without being physically there for companies that he narrowed down to 1 or 2. Specially before he was warren buffet. Company’s don’t allow (give time of the day) to rando’s who are investors and want to evaluate them
- bouncing 8y agoActually, yeah, he probably does. His approach doesn't scale -- not at all. He bets big on individual companies. As much as Berkshire Hathaway has scaled, it's by having employees who are similarly _involved_ in the process. They aren't armchair investors -- not now and not in the past. And no, companies don't give tours to randos. You have to do it with a lot of money on the table. Buffet isn't rags to riches; he's medium-rich to super-rich, and he got his start in much smaller businesses.