Al Anany

Warren Buffet’s investing ideology

Warren Buffet
Image by Fortune Live Media on Flickr 

 

Invest in Crypto and get rich fast. Warren Buffet – “No, how about investing in carpets? There will always be carpets…”

These days, countless people are talking about investing in cryptocurrency and how it made a few people rich in a very short amount of time. To us humans, the speed of achieving the desired is very lucrative, because there’s only one thing we’re losing every moment, which is time. So, if there’s an option of achieving what a person does in a lifetime, in a few minutes, it’s efficient, and sounds fantastic.

However, the beauty is in the journey. While Elon Musk made billions in a few years, Warren Buffet took his time in doing so and investing wisely. Put both of them together in a room, and you’ll be wanting to hear more about the fantastic journey Buffet had, and how it shaped him into who he is today. Buffet’s lesson would be that one should not look at time as an obstacle that we have to resolve as many problems in as little of it. Instead, one should look at time as an investing factor that’s on our side rather than against us. Yes, we grow older every second. But, the older anything grows, the wiser it is, and that’s the lesson grasped from Buffet’s investment journey.

After reading Snowball, an 832 pager about Warren Buffet and how he became the investing giant he is today, one gets to get a glimpse of the brain inside Warren Buffet’s head. This investing legend did it right by being straightforward and thinking from a human perspective. Following another genius in investing called Benjamin Graham, Buffet’s ideas are not, to this day, pivoted by society. He looks at a human being, assesses the need, and then studies a business to see and analyze whether it’s a good buy.

Buffet is not the richest in this world.

His investments are usually safe. He founded a firm a while back called Berkshire Hathaway and has been implementing his vision into the firm for as long as he’s living. His firm’s biggest investments are Apple, Bank of America, American Express, and Coca-Cola. He doesn’t invest in Bitcoin, because he doesn’t need to get rich overnight. You see, the aim of a snowball is to get bigger the more it assembles small snow. His genius is assessing an opportunity, and looking at it from a human being’s perspective. Take the internet bubble as an example. There were tons of internet and technology companies that showed great potential. Yet, Buffet would stand firm, and invest in what he understood. He doesn’t know whether the average human being in 30 years will be using the internet as much. Obviously, he missed out on a lot of investments there. However, he played it safe. That’s why he’s not an investor in cryptocurrency. He doesn’t understand it, and he doesn’t own it for that reason.

His process would be simplified as follows:-

  1. Is this business going to exist in the next 30 years?
  2. Does it have the perfect team and financial healthiness that shows it will be one of the biggest market players?

The answer was a yes to Coca-Cola, Bank of America, Kraft Heinz, Verizon Communications, and Apple. While Apple is considered to be a technological company, their most popular product is the iPhone, to this day it’s one of the most revenue-generating products they have. I would like to believe that that’s how Buffet looked at it, a phone company. There are safe technology ventures and risky ones. Apple released successful phones. By the time Buffet was investing in Apple, which was in 2016, it was quite obvious that such smartphones are here for the long run, add that with their financial healthy sheets, it was the perfect investment. Buffet invested around $36Bn in Apple in 2016, which is now equivalent to $146Bn.

What’s to really grasp from this genius’s nongenius approach, is the following:-

  • At the time of this writing, Elon Musk is the richest due to his technology companies thriving. Bezos is rich due to his internet technology company thriving. Warren played the safe game and is now in the top 10 in terms of riches.
  • You as a person, don’t have to look for a stunning investment to thrive. Look for tiny pieces of snow, and build your own snowballs. When a friend comes over with an investment opportunity of a restaurant that has potential, don’t ignore the call. This restaurant might be part of your Snowball.

Warren Buffet did what he did with patience, determination, smart investing and a few healthy habits. He reads almost 80% of his day. Again, the killer feature that made him who he is today, is that society would never alter his opinion and studies. If he believes ants are going to be dominating the future markets and are worth investing in, then he would. Finally, his journey is for sure a lesson for everyone. He followed his path, learning from his surroundings, but believing in his points of view and in what he understood most. He was empowered by reading more about investing, how to it right, and what not to do. When one has a mixture like the above, there are no obstacles that won’t be destroyed in the process.


I’m Al, a business consultant in Zurich, Switzerland. I believe in providing readers with value. Hence, I created Learn, a section on my website purely dedicated to guides and articles providing value in the fields of Freelancing, and Entrepreneurship. Alternatively, you could visit my journal for all my articles, or my Medium profile. Finally, follow me on Linkedin as it takes most of my attention.