The following content is not a personal recommendation to buy shares in the companies listed as I am not taking your personal financial situation into account.

Investing Insights: Why Age and Consistency Might be Your Best Investment Allies

Evaluating Companies Through Time: The Key to Predicting Future Success

Nobody can accurately predict the future, but we can know the past, and we can know the present. When it comes to owning companies on the share market, it comes down to evaluating their past and present to come to a conclusion about what the company may do in the future. 

What is the probability this company’s share price will continue to rise well into the future? 

A company with a track record of growth and higher earnings over a lengthy period of time likely has a great management team that has built a strong economic moat around the company. 

These are the types of companies that offer the least amount of risk. And when you combine these attributes with global growth potential and high returns on capital, you have a company that you can trust and build a sizeable investment in over time.

Warren Buffett’s Time Tested Strategy: Betting on Age and Consistency

When you look at Berkshire Hathaway’s largest holdings, both on and off the share market, they are companies that display all of the attributes I just mentioned. But what’s interesting is none of these companies Buffett bought when they were young. In many cases, they were decades and decades old and had been consistently delivering higher and higher earnings for 20 and 30 years before Buffett invested $1. 

Coca Cola and Bank of America were more than 100 years old before Buffett bought shares in these companies that have made him a fortune. Apple was more than 30 years old before Buffett decided to buy 5.5% of the company. An investment that is now worth over $125 billion dollars. 

American Express was decades old before Buffett bought 151 million shares, now worth over $25 billion, making him the biggest shareholder. All the private businesses that Berkshire Hathaway has purchased over the years are collectively worth over $600 billion dollars and virtually every one of them was decades old before Buffett even considered buying them for Berkshire.

Simplicity and Patience: The Underrated Pillars of Investment Mastery

Valuations matter. Earnings matter. 

There are so many wonderful lessons to be learned from the greatest investors of all time. Most of those lessons revolve around simplicity and patience (two attributes that many people in financial markets, for some reason, just can’t bring themselves to believe are important). 

Most just want instant gratification. 

Be the exception.

Keep learning and keep investing,

AB

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