Salient to Investors:

IAEResearch writes:

Warren Buffett will be gone soon but that does not imply that the company is in jeopardy because its strategy is more of a philosophy embedded firmly in value investing.

Berkshire Hathaway has outperformed the S&P 500 by 10.3% on an annual compounded basis. To associate this to one or two individuals is naive.

Buffett and Munger’s investment philosophy has been greatly inspired by Benjamin Graham – their investment decisions are firmly grounded in the belief that business performance precedes stock performance, which is primarily the essence of value investing.

Buffett says it is better to own a small share of a wonderful business than to hold 100% of a so-so company, with a focus on acquiring the business’s management.

Berkshire rarely interacts with its subsidiary companies’ management, a significant factor in its success. Cost cutting is never really an option: instead Berkshire has a history of funding major capital expenditure, believing paying out dividends a poor idea.

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