Warren Buffett is considered the world's best investor. Luckily for us, he's also one of the most transparent.
Dubbed the "Oracle of Omaha", Buffett is the CEO and chairman of Berkshire Hathaway, and the world's third-richest man.
According to Forbes, the man is worth just under US$73 billion (AU $102.5 billion) which he has accrued over 65 short years, starting with just US $10,000 in 1950.
He's also an open book when it comes to investment advice. That makes him one of the most precious resources for people like you and me looking to build our wealth, exponentially.
The power of patience
When it comes to successful investing, there is no such thing as 'timing' the market. While the speculator might get lucky, from time to time, it's a strategy which mostly boils down to luck.
Instead, Buffett stresses the importance of 'time in the market'. For the most part, this method requires investors to sit on their hands, and do absolutely nothing.
It's that simple. No time machines; no complicated formulae; no 'inside knowledge' that isn't available to ordinary investors like you and me. Just patience.
Picking the right companies
Of course, Buffett also has a knack for picking the right businesses. You only need to look at his mass holdings of Coca-Cola, American Express and IBM to figure that one out.
While it is vital to ensure you're not overpaying for such high-quality businesses, it's also unnecessary to squabble over a few percentage points. In the long-run, quality will prevail.
Just like Buffett's teacher, Benjamin Graham once noted: "In the short run, the market is a voting machine but, in the long run, it acts like a weighing machine."
Buffett down under
After decades of waiting, Buffett has finally brought his expertise to Australia!
For the first time in history, Buffett bought a sizeable chunk of an ASX-listed company in Insurance Australia Group Ltd (ASX: IAG) in June 2015.
But IAG was just an appetiser for what is to come. At the time of his purchase, he told the Fairfax Media that "If you come back in two or three years, you will find we have got four or five Australian equities."
He's already indicated his interest in the Big Four banks, but that could be as far as five years away!
Whatever companies he ends up buying next, you can be sure of two things:
- He won't speculate. The businesses he buys will have to have stood the test of time and proven their worth.
- Buffett demands quality. He won't settle for a mediocre balance sheet while a solid dividend yield would draw his attention.
To assist in your search for similar investment opportunities that have made Buffett his fortune – and those he may look at when he returns cashed-up to Australia – our analysts have devised a brand-new research report.
It's called "Warren Buffett's Greatest Wisdom", and it includes two ASX companies they believe Buffett would adore. Thousands of investors have already capitalised on similar research we've released. Make sure to access your FREE copy today by clicking here now.
