Warren Buffett began his career as an investor when he was just 11 years old, and his strategy is marked by equal parts patience and appreciation of the value of long-term investing.
Buffett took over Berkshire Hathaway in the 1960s and turned it into a holding company with subsidiaries in various industries, including insurance, rail freight and energy.
Regarding stock performance, Berkshire Hathaway has a legacy of strong returns. Berkshire Hathaway’s Class B (BRK-B) had a 60% five-year return and a 229% 10-year return.
To put those numbers in perspective, consider that the SPDR S&P 500 (SPY), an exchange-traded fund that tracks the performance of the S&P 500 index, had a 57% five-year return, and a 180% 10-year return.
While you may want to emulate Buffett’s success, remember that he is an advocate for index funds. But if you want to institute his investment strategy in your own portfolio, focus on investing in businesses rather than the latest hot stock. And plan on holding your portfolio for the long-term.