Warren Buffet is a skilled communicator in all aspects of life. Communication is the real key of leadership and has been key to Buffet’s long term success. Along with having the right investment strategy at the right time. However, in an age of rapid change and a restructuring of the world investment order Buffet’s buy and hold strategy may not produce nearly as good results in the future.

Warren communicates openly and frankly with his investors and makes sure that he can communicate effectively with the managers of a company before he buys it. In a global market that level of communication may be difficult to emulate when you may be interested in buying stock in a company located half a world away and immersed in an entirely foreign culture.

In addition, the life span of companies that can not quickly adapt to competition in world markets and to changing market conditions may be more limited than ever. For example, many companies directly affected by high fuel costs, such as airline and trucking companies, may not survive in a high energy cost world. Buying an holding for the long term may turn out to be futile as companies may well peak and than decline more rapidly in the future than over the past 50 years of the Buffet era.

Warren Buffet is estimated to be at a net worth of $50 to $55 billion. This is after Warren Buffet has donated billions of Dollars to Bill Gates to support Bill Gate’s foundation. His money making success is prove enough that Buffet’s strategy has worked extremely well up to now. But for the next 20 or 30 years it may be that the Buffet approach to investing will be challenged. The “Buffet Era” may be coming to an end.

Warren Buffet expresses concern that there is discontent growing in America that the children of the middle class will not fare as well in their work lives as their parents now fare in our society. Against the backdrop of the super wealthy having increased their wealth so substantially in the last decade his argument is made the stronger by the fact that middle class incomes have been stagnant.

Warren buffet is known as the world’s greatest investor. Warren Buffet is a renowned “value investor” ( as opposed to a “momentum player” ) and would invest only if stocks are available at reasonable “cheap” evaluations. After a prolonged bull run ( like the one we had), the overheated market would leave fewer cherries to be picked even for a trained pro like Mr. Buffet. Warren Buffet is quoted as saying that if you want to “buy and hold” stocks you need to have a “buy and hold” portfolio. This means you need to have a portfolio of stocks that are under priced to begin with.

Investing in other well-known companies made much of his money. Buffet will invest only in companies whose businesses he understands and whose management he has confidence in and trusts. Once he has acquired an interest in a company that is “priced right” he tends to be a long term investor. Buffet has not invested in high tech companies as he says he just doesn’t understand enough of their manufacturing processes to feel comfortable with that type of investment.

High tech companies do not have the protective “moat” around them that Buffet seeks. That is new technology quickly replaces what is new today and there are new entries coming along all of the time to compete in the niche that thought that you would have to yourself. Buffet feels that the risk of rapid product obsolescence is just too great in the high tech sector.

Warren Buffet isn’t one to rub elbows with the rich and famous. He chooses not to attend socialite parties. His way to unwind is microwaving some popcorn and watching TV. Warren Buffet is one of the richest men in the world and quite possibly the single greatest investor in human history. As the CEO of Berkshire Hathaway, Buffet made his fortune by investing in undervalued companies with potential for growth and pitiful price-to-earnings ratios.

Bill Gates is an effective demonstration that charity is possible without religion playing any role whatsoever. Bill Gates, the world’s richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet but they have turned out to be good friends and have joined forces in promoting and funding good causes around the world through their foundations. The driving common factor is that they both are putting their vast wealth to work for the public good.

Warren has a history of saying that he, along with other rich people, don’t pay enough taxes and aren’t holding up their end of the social contract. He also supports a more fiscally responsible US spending policy, which is very important for several reasons. One of them is to reduce the amount of money that the US has to borrow in international markets every day just to keep on going.

Buffet places a lot of trust and faith in the mangers of the companies that he purchases. More than anything else his success is due to his ability to correctly judge people.

Warren Buffet has already pledged his massive fortune to charity - 30 billion dollars to the Bill and Melinda Gates Foundation - which has been doing amazing things to save the lives of the poorest people in the world. He has already led by example. Warren Buffet has lived in the same house for nearly 50 years, which he bought for $31,500 and is now worth $700,000.

In spite of his immense wealth Warren Buffet has kept his feet solidly on the ground. This has lead to a productive and meaningful life, not just one in which acquiring wealth was the only objective. One can learn much about leading a successful and fulfilling life by studying the life of Warren Buffet.

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!