Berkshire’s compound annual gain was 19.8% from 1965 through 2022, compared with 9.9% for the S&P 500. That’s an overall total return of 3,787,464% vs. 24,708% for the benchmark. Many Berkshire shareholders were made millionaires by Buffett’s shrewd moves and patient value philosophy over the years.
The AI investing craze, the creation of fundamental analysis, compounding returns with Warren Buffett, running a highly concentrated portfolio, and more.
To counteract the innate human talent for inventing reasons to hold on to their ideas despite bad or changing news, Baupost requires what it calls a “re-buy analysis.” When circumstances change, analysts use the new information to underwrite existing investments from scratch. Would they buy the same investments today? Baupost’s objective is not to hold investments forever; it’s to hold them until they’re no longer a good investment.