“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” — Warren BuffettBut what most people don’t ......
Most people recognise Warren Buffett as the most successful exponent of value investing. And with good reason too – Buffett is currently the third richest man in the world and his holding company, Berkshire Hathaway, has seen its per-share book value grow from $19 in 1964 to $211,750 in 2017, a rate of 19.1% compounded annually over 53 years.
Buffett today is well-known for investing in high-quality companies with wide economic moats like Apple, Coca-Cola, and American Express. He looks for companies with strong brands, a dominant market position, and sustainable growth in earnings — so the company will be worth more in the future than it is today. Buffett’s investment philosophy is neatly summed up by his famous quote: