Meet Ten Investing Masters
Warren Buffett: The Businessman
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Warren Buffett has racked up the greatest performance record in the history of Wall Street. But how? In The Warren Buffett Way by Robert Hagstrom Jr., Buffett simply states: "I am a better investor because I am a businessman and a better businessman because I am an investor."
For Buffett, a stock is not merely a piece of paper, but an actual business. Naturally, then, he believes that those with the deepest business understanding will invest with the greatest success. In that spirit, Buffett avoids what he doesn't understand, refusing to stake money outside his circle of competence. And he looks to invest in great business managers who live and breathe a company's success.
Buffett may have had a slow last few years, but taken in full he's smashed the market's average return. Expect him to do so again.
Next: Ben Graham »