Buffett Says Berkshire success not just smart investing but also luck
Billionaire investor Warren Buffett, who is also the Chairman of Berkshire Hathaway, recently wrote his annual letter to the investors. In it, he revealed an interesting fact about the company’s success. According to him, it was not just smart investing that helped Berkshire grow to what it is today, but also a lot of luck.
Buffett explained that it all started in 1967 when Berkshire made its first investment in an insurance firm called National Indemnity. At that time, the company had no idea that this decision would eventually lead to its success in the world of insurance. He said that it was a stroke of luck that they stumbled upon this opportunity, and it turned out to be a great investment.
Buffett also added that part of Berkshire’s success could be attributed to its approach of playing safe. He revealed that the company was always careful with its investments and never took unnecessary risks. Instead, they always focused on well-tested insurance bets that they were confident would pay off.
Berkshire Hathaway is now one of the largest and most successful companies in the world, with a net worth of over $600 billion. It owns many well-known brands, such as Geico, Dairy Queen, and Duracell. Its success has made Buffett one of the wealthiest people in the world, with a net worth of over $100 billion.
Buffett’s letter to investors was eagerly awaited by many, as he is considered to be one of the most successful investors of all time. He is often referred to as the “Oracle of Omaha” due to his incredible ability to pick winning stocks. His letter offered insights into the company’s performance, as well as his thoughts on the economy and investing in general.
While smart investing has certainly played a significant role in Berkshire’s success, Warren Buffett’s admission that luck was also a crucial factor is a reminder that even the best investors need a bit of good fortune to succeed. The company’s conservative approach to investing has also helped it weather economic downturns and emerge stronger, making it a reliable and trusted choice for investors.