The Face of the Value

Warren Buffett is without a doubt one of the utmost Investor of this era, not only about because he made a super fortune but also because he is communal with his ways and thinking with people leading a part of them to success.  When it comes to Warren Buffett, you can easily be astounded by the enormous mass of the figures. Since the highest percentage of people has to deal with hundreds and thousands in their everyday life, Buffett interacts in the “universe” of six or even seven figures.  However make no mistake that this man can be categorized as the money maker with the highly rich lifestyle as is quite the opposite. He is a great mentor for investors and at the same time a good example that money does not buy you happiness as it lives in a simple lifestyle despite the huge net worth that he is carrying. What really fascinated me is the fact that Warren Buffet has donated billions of his wealth to charity over the years. If we look at what he does and has done, and are able to separate the underlying thinking, we can model our decisions on his.

Based on the BBC documentary ‘The World’s Greatest Money Maker’ which summarizes the formula that he used to thrive in the world of investment, which really is an inspiration element for me and if it is safe to say, most of the people in this business.   Warren Buffett, the quintessential focus investor, is as far from that stereotype of frenzy as anything imaginable. The man whom many consider the world's greatest investor is usually described with words like ''soft-spoken," "down-to-earth," and "grandfatherly." He moves with the clam that is born of great confidence, yet his accomplishments and his performance record are legendary. It is no accident that the entire investment industry pays close attention to what he does. If Buffett characterizes his approach as "focus investing," we would be wise to learn what that means and how it is done.

Over the years, Warren Buffett has developed a way of choosing the companies he considers worthy places to put his money. His choice rests on a notion of great common sense: if the company itself is doing well and is managed by smart people, eventually its inherent value will be reflected in its stock price. Buffett thus devotes most of his attention not to tracking share price but to analysing the economics of the underlying business and assessing its management. This is not to suggest that analysing the company—uncovering all the information that tells us its economic value—is particularly easy. Warren Buffett did not invent focus investing. The fundamental rationale was originally articulated more than fifty years ago by John Maynard Keynes. What Buffett did, with stunning success, was apply the rationale, even before he gave it its name. The question that fascinates me is why Wall Street, noted for its unabashed willingness to copy success, has so far disregarded focus investing as a legitimate approach.

Food for thought here could be the fact that Warren Buffett never had a computer, calculator or stock ticker for use, which it can be described as a “freak” in our generation following his investing career and massive success The fact that Warren Buffett does not have a computer on his desk perhaps helps him stick to one of his own rules which is to think independently. Perhaps as his success grew, he became more and more confident in his ability. All in all, it is great success story for investors and also a role model as the investment sector is so simple and yet tough to thrive as you have to be a copycat and most people they just want to follow their hutch and act, that’s why we have people win and others loose.