You follow Warren Buffett.
That’s not an exaggeration. Since Buffett took control of Berkshire Hathaway in 1965, the company’s stock has surged by a staggering 4,384,748% (as of early 2024)—that’s over five million percent with compounding. By comparison, the S&P 500 has returned just under 39,000% over the same period. That means Buffett outperformed the broader U.S. market by more than 140 times.
Let that sink in.
Buffett didn’t achieve this by chasing trends, trading daily, or timing the market. He did it by applying a few simple—but incredibly powerful—principles consistently over six decades. And in doing so, he built Berkshire Hathaway into one of the world’s most admired and valuable businesses, with a market cap now topping $1.1 trillion.
From Failing Textile Mill to $778,000/Share
Rather than continue in the failing textile business, Buffett used the cash flow to acquire high-quality businesses—insurance companies, banks, energy utilities, railroads, and consumer giants like Coca-Cola, Apple, and American Express. He focused on what he called “economic castles protected by moats”—companies with durable competitive advantages.
Unlike a mutual fund or hedge fund, Berkshire gave Buffett the flexibility to make long-term investments without pressure from quarterly results or investor redemptions. This allowed him to act rationally while others panicked—a key Buffett advantage.
The End of an Era—But Not the End of the Lesson
At this year’s annual Berkshire Hathaway meeting in Omaha, Buffett announced that he’ll officially step down as CEO at the end of 2025. His successor, Greg Abel, will take over day-to-day operations. Buffett will remain chairman, but his hands-on leadership is nearing its end.
It’s the closing chapter of an incredible era. But the investing principles Buffett lived by—discipline, patience, long-term thinking, and contrarianism—will continue to guide those of us willing to learn.
How Warren Buffett Shaped Real Wealth—and My Own Investing Success
It was Buffett—along with value investing legends like Ben Graham, Walter Schloss, and Bill Ruane—who inspired me to launch the Real Wealth portfolio back in 2010. I’ve built it around the same core principles that made Buffett successful:
* Own high-quality businesses with consistent profits
* Back strong, shareholder-aligned management teams
* Let compounding work over time
* Avoid speculation and crowd-driven decisions
Following this philosophy led me to uncover long-term winners like:
* Clicks – returned 104%
* Shoprite – returned 84%
* Afrimat – returned 188%
More importantly, these investments weren’t obvious or popular at the time. In fact, they were mostly ignored.
But that’s the point. One of Buffett’s most powerful maxims is:
“Be fearful when others are greedy, and greedy when others are fearful.”
Buffett made a career—and a fortune—by leaning into fear, uncertainty, and pessimism. In doing so, he turned undervalued opportunities into long-term compounders.
This exact contrarian mindset helped me outperform the JSE All Share Index for 14 consecutive years, even as many investors pulled back from local equities due to negative headlines and short-term fear.
Warren Buffett’s Playbook, Summed Up
If there’s one lesson you take from Buffett’s legacy, let it be this:
1. Buy great businesses, not just cheap ones. Look for companies with strong moats, reliable earnings, and proven leadership.
2. Let time do the heavy lifting. Compounding takes time—but once it kicks in, it works miracles.
3. Ignore the noise. Market sentiment changes daily. Great businesses create wealth steadily.
4. Invest when others hesitate. The best opportunities are usually found in unpopular places.
Will There Ever Be Another Buffett?
Probably not. Buffett is one of a kind—a unique blend of intellect, patience, and emotional discipline. But the beauty of his strategy is that you don’t have to be him to apply his ideas.
Even in a volatile world, his legacy proves that long-term investing based on logic, value, and resilience still works. It always has—and I believe it always will.
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