Buy Berkshire is Warren Buffett's mistake?

(Tamnhin.net) - The company has issued and listed its shares on the stock market or not does not affect the real value of the company.

Most people have said that the success of the illustrious Warren Buffett started in 1964 when he purchased a mill and use it as a fulcrum to continuous invest in different sectors, forging an inheritance enormous asset.

However, in an interview with broadcaster CNBC, Warren Buffett said that the acquisition of textile mill was his big mistake, because he has lost many opportunities to make money worth at least $ 200 billionin the past 46 years. Obviously it is difficult to imagine, he probably said too up or telling jokes? Buffett explained, after buying the mill, he had lost a lot of time and money to renovate it. If then he bought an insurance company, the net asset value will certainly increase rapidly, and he will not have to put effort, time and money at the shabby textile mill.

We can not verify the accuracy of the calculation of Buffett, but his business standpoint is clear: short-term investments in high growth companies is not as effective as the company has increasedlow growth, but if the long-term invest will be different. Compound growth rate "scary", after 20, 30 years, though the difference of the compound growth rate is very small, but the property that it brings can create great distance apart. This requires the investor to have the foresight and judgment accuracy growth of investment companies. The regret of Warren Buffett suggests that in investing, you should not take cheap that lost the right choice and growth prospects. A portfolio of low growth or no growth in the initial investment can be very cheap, but ultimately your wasting a lot of money, property, because it prevents your development path.

The economic experts have researched and reviewed the success of the prominent investors based on a number of factors as follows: business that in investing is promising enterprise, business managers must be who have the ambition to promote profitable growth and has the capacity to implement ambition (they are hard and smart managers).

The difference between Warren Buffett and other investment fund managers expressed in a number of ways such as: His company, in fact, acts as a closed fund, constantly and forever. In terms of investors, he was a visionary. When the market is down, most hedge funds are selling off assets to reduce the pressure, but Buffett's company is not only selling, but also continue to buy in. To choose investment objectives, with keen judgment and acumen, his success rate is always higher than other investors.

In addition, the investment method of Warren Buffett is that: he doen't own a small stake in many companies, and then play the stock, but he invests most of his assets in a holding company, in which equity investments accounted for only a small part. In other words, Buffett should not be considered as an investment manager, we should see him as a businessman. Upon detection of a project or a company perspective, his first step is the acquisition of the whole project and the company at a reasonable price, he was interested in the long-term sustainability and growth of the company rather than just buying and selling common stock.

But unlike other businesses, Buffett does not establish insurance companies, chain stores or other aviation companies. He bought the company, whether or not on the floor that he found promising development. For him, the company has issued and listed shares is unimportant.

Another difference between Buffett and other businesses, that is, he does not directly participate in the management business, including businesses owned by him. In this regard, he is like the fund managers. He also differs from investment funds, his businesses are not split into smaller companies under large enterprises and listed its shares on the stock market.

This is very important. Private investment funds account for only a small share of business investment, so they can sell after a few years or withdrawn in the company listed.  

We often appreciate the companies whose shares are listed on the stock market, because it creates the opportunity to make a profit as well as "escape" fast. At the same time, the company can raise with the issuance of shares of high (higher than the actual value). But this will usually make up the heart of sewing opportunities and eat. Stock investors often do not consider long-term benefits and compound growth rate.