Warren Buffett - Lucky or Pure Genius?
we all know who Warren Buffett is, dont we? in case you dont, he is the second richest man in the world and the chairman of Berkshire Hathaway. His investment skills & foresight are legendary... there is saying 'never challenge the market & never doubt warren'
In a recession that has brought all the economies & companies down to its knees, warren made a extra ordinary profit on his investment. How? when lehman brothers went bankrupt, it sent shockwaves in wallstreet & all major brokerage, consultancy & asset management companies took a beating in their shares or were forced to shutdown. Warren invested (or should say lent) $5 billion dollars to Goldman Sachs. He bet against the market trend & also gave Goldman the much needed credibility. His investment value a year later has a mind boggling $3 billion increase!!! plus in addition to this he receives a 10% interest on the investment too, which netted him a cool $500 million in free cash.
To understand his case a year ago, this is why Warren really invested. Goldman Sachs has been looking into new markets for investments, especially China. The money which they received from Warren mostly went into investing in chinese companies.
If you didnt know, GS is supporting Geely (a chinese car manufacturer) to buy Volvo from Ford! Another hot cake is Baidu, the chinese equivalent to Google. Which analysts expect it to outgrow Google in the next 5 years!! With a dozen more growth companies like this... china is certainly the next big thing.
Warren always wants to know where his money goes and he insists and follows it very carefully. With insights like this, a patient mindset, know-it-all-but-keep-it-quite behaviour... i always ask myself - WTF am i doing with a day job?
I love this guy... he is truly ahead of the times!
In a recession that has brought all the economies & companies down to its knees, warren made a extra ordinary profit on his investment. How? when lehman brothers went bankrupt, it sent shockwaves in wallstreet & all major brokerage, consultancy & asset management companies took a beating in their shares or were forced to shutdown. Warren invested (or should say lent) $5 billion dollars to Goldman Sachs. He bet against the market trend & also gave Goldman the much needed credibility. His investment value a year later has a mind boggling $3 billion increase!!! plus in addition to this he receives a 10% interest on the investment too, which netted him a cool $500 million in free cash.
To understand his case a year ago, this is why Warren really invested. Goldman Sachs has been looking into new markets for investments, especially China. The money which they received from Warren mostly went into investing in chinese companies.
If you didnt know, GS is supporting Geely (a chinese car manufacturer) to buy Volvo from Ford! Another hot cake is Baidu, the chinese equivalent to Google. Which analysts expect it to outgrow Google in the next 5 years!! With a dozen more growth companies like this... china is certainly the next big thing.
Warren always wants to know where his money goes and he insists and follows it very carefully. With insights like this, a patient mindset, know-it-all-but-keep-it-quite behaviour... i always ask myself - WTF am i doing with a day job?
I love this guy... he is truly ahead of the times!
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