Buy a high-performance Mercedes-Benz CLS63 AMG coupe or take a 2 months round-the-world cruise in a royal suite on Queen Mary 2 or buy a single stock of Berkshire Hathaway (BRKA). Yes, a single stock of BRKA, a holding company owned by Warren Buffett (2nd richest man in the world), is costing more than 100,000 $ (approx 46 Lakh Indian Rupees). Share price of BRKA became the first stock to reach the six-digit mark at $104,000. So the fact is, if one had put $10,000 into Berkshire Hathaway stock in 1970s, he would have over $50 million now. Buying his first stock at the age of 11 at 38$ and now handling a holding firm of annual revenue 81 billion $, its just awesome investment strategies implemented. Being mentored under Benjamin Graham and fostering his growth on the concept of "investment cigar butts" :)) is truly a living legend investor. "Cigar Butts" are the companies who have been discarded by the stock market but who still have a few "puffs" of values left in them. Benjamin Graham's "The Intelligent Investor", probably still considered the bible of investors, explains it well. Finding such companies requires a tremendous patience and intense balance-sheet analysis. Working merely on this concept his investment foresight convinced him to buy coca cola in 1988 for 11$ when it was a wall street failure converting it to be a whooping 13 billion $ current stake and adding many more bigger names in his portfolio which were earlier a big failures. No matter a common man can never think of buying a stock of BRKA, but can always give reverence to a common man who built up this stock. Its just amazing.
posted by Rupreet @ 3:41 PM
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