Warren Buffett, the sage of Omaha, the world’s richest man, the most famous value investor of this century. As an investor, he has everything going for him – the network to tap on, a cheap source of funds to invest in and the investing know how.
His investment holding company Berkshire Hathaway has an enviable track record, pulling in approximately 20% returns per annum for the past 50 years.
However, the larger the company grows, the faster he is losing his ‘winning’ advantage. An advantage that retail investors like you and I have – the ability to make huge returns.
Maintaining a 20% return of investment becomes tougher for Warren Buffett
For a small investor with a $100,000 account, a gain of $50,000 would be a 50% return. Whereas for Buffett who is dealing with billions of dollars, a $50,000 gain would be less than a 1% return.
And, he ......