Warren Buffett is my Number 1 choice for the most successful stock picker because he has an uncanny ability to buy quality companies below their intrinsic value.
What is the secret of his success? He has a laser focus on sectors and industries that he is most knowledgeable and familiar with. For him these are financial stocks and consumer Staples. By focusing on companies that he really knows, Warren Buffett has become very good at picking out the winners.
Warren Buffett also picks companies that have a wide moat. For example Coca-Cola has a brand moat as it is known all over the world.
He also looks at the management of a company. He values trustworthy and highly competent management. Example is Tim Cook of Apple.
Warren Buffett loves companies that are profitable and pays good dividends. Example is Occidental Petroleum.
Finally the most important thing that Warren Buffett does when it comes to investing is to do nothing. He buys into companies that he believes are great and then hold them for many years. He allows the magic of compounding to work.
That is why Warren Buffett is such a phenomenal success at picking stocks. I treasure these valuable lessons that I learnt from him and hope that he will continue to share his knowledge with us for many more years to come. Long Live Warren Buffett, The King of Value Investing! ππππππ
Comments