Warren Buffett: The Oracle of Omaha Still Going Strong at 93
Warren Buffett, Chairman and CEO of Berkshire Hathaway, took control of the conglomerate in 1965. Nearly six decades later, as he turned 93 on Wednesday, his company is stronger than ever. Berkshire Hathaway shares have reached an all-time high on record operating profits, making it the biggest nontech company by market capitalization.
Buffett has been making astute moves, from buying underappreciated Japanese stocks to navigating a surge in interest rates skillfully. His mental acuity is as sharp as ever, according to finance professor David Kass.
One of Buffett’s standout traits is his ability to take advantage of higher rates due to his substantial cash reserves, which have been earning him a significant return with short-term rates above 5%. He has also leaned heavily on his investment in Apple, which now makes up half of Berkshire’s equity portfolio.
Buffett made a “groundbreaking” investment in five Japanese trading houses earlier this year. This move impressed investors like Chamath Palihapitiya, who called Buffett “the GOAT.” By investing in stable dividend-paying and earning-growing companies in Japan, Buffett has been able to hedge currency risk and pocket the difference between dividends and bond coupon payments.
At Berkshire’s annual meeting in May, Buffett and his business partner Charlie Munger touched on various topics, showing their intellectual clarity and accountability to shareholders. Buffett’s track record of doubling the average annual return of the S&P 500 since taking control in 1965 is unmatched. Berkshire’s compound annual gain was 19.8% compared to 9.9% for the S&P 500.
Despite his age, Buffett still maintains his long-term investing philosophy, aiming to hold investments forever. His infinite time horizon has made many Berkshire shareholders millionaires over the years. At 93, Buffett continues to impress with his strategic investment decisions and unwavering dedication to long-term value creation.
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