Here's Your Chance To Learn From Warren Buffett

Investment advice from the master… for free

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

When master investor (and $72 billion man) Warren Buffett speaks, sensible investors and business people the world over stop and listen. We sure do here at Motley Fool Share Advisor.

And arguably his most-awaited piece of communication will be published this weekend.

Buffett, the Chairman and CEO of investment conglomerate Berkshire Hathaway (NYSE:BRK-B), is well known for both his astounding investment success and for sharing the secrets of that success openly with anyone who'll listen.

From Warren Buffett straight to you

You'll know the ones who are keenest to listen — they'll be at their computers late on Saturday night or early on Sunday morning, eager to read what the 'Oracle of Omaha' has to say.

His latest 'Chairman's letter' to the shareholders of Berkshire Hathaway will be released at midnight Sunday (AEDST), and is sure to be a doozy.

Buffett will be reflecting on the half-century that he and business partner Charlie Munger have been running Berkshire — and this year we get two for the price of one (well sort of — the letter is available free!), with Munger himself also penning a letter taking the same retrospective approach.

A staggeringly successful role model

If you're not familiar with Buffett, he's no fly-by-night big shot or would-be hero.

He's famous because of the simple, consistent, time-honoured investing approach he's followed for over five decades, and for the results he's achieved.

Warren Buffett has taken a small textile mill and made it into one of the largest companies in the world, in the space of 50 years.

And in doing so, he's taken the book value — the sum total of its assets, minus its debts — of the company from US$19 per share to, wait for it, US$134,973 as of last year — a compound growth of 19.7% annually. (Is it any wonder the Motley Fool Share Advisor team are huge fans?)

That sounds impressive right? It is — the benchmark Buffett uses is the S&P 500. Its gain of 9.8% per year are almost exactly half of Berkshire's.

And it gets better — thanks to the miracle of compounding, 9.8% per year since 1964 is 9,841% but 19.7% isn't just double that — it's far, far more… 693,518% in fact!

If you'd have invested $10,000 with Buffett back then, you'd have $69.35 million today because not only has he generated outsized annual returns, but he's done it for a whopping 50 years!

There's a reason he's widely regarded as the best investor we've ever seen… and he's not finished yet.

Investment advice from the master… for free

When it comes to sharing what he's learned in more than 84 years, Buffett is extremely generous.

He regularly appears on business news channels, writes op-ed articles for The New York Times and Fortune, and — perhaps most famously — those Chairman's letters to Berkshire shareholders… which are posted on the company's website for anyone to see, even if you're not a shareholder.

Buffett spends pages and pages helping you and I become better investors — for free.

He's waxed lyrical on derivatives (before the GFC), how to think about dividends, investor psychology and how he thinks about valuing businesses.

Last year, he admonished investors who were focussed on volatility in share prices and instead reminded us to fix our gaze on understanding the earnings power of the business itself.

Stay up late… or don't… but make sure you read it!

I'll be one of the diehard few up at midnight on Sunday (Saturday night, for the sake of avoiding confusion) taking in Buffett and Munger's best (and I'll be sharing my thoughts with the members of Motley Fool Share Advisor.)

I don't expect there'll be too many like me, but you should definitely take the time to read it, soon.

There are few guarantees in this life, but I'll give this one willingly — you'll be a better investor if you do.

 Scott Phillips owns shares in Berkshire Hathaway.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »