The Buffett Touch

He controls 8% of Coca-Cola, he owns roughly 25% of Berkshire Hathaway, he maintains shareholder control of over 70 different enterprises worth a combined $52 billion, he works out of a single-floor office space in Omaha, Nebraska, and he lives on an annual income of $100,000. If you know anything about Warren Buffett, you know that everyone he comes into contact with highly appreciates his deep sense of humility despite his immense wealth. What people continue to ask is how he does what he does and he has answered this over-and-over again.

The "Oracle of Omaha" looks for undervalued companies where the price-to-asset ratio is very low, he ensures that the prospective companies maintain what is called durable competitive advantage, and he does not speculate in the market - sorry Facebook. When he purchases a company he tweaks leadership around if he feels the need to, but his highest priority is allocating capital where it is needed most. If this means taking it out of one of the companies in his portfolio to another then he does so. His bottom-line is sticking to long-term investments and managing its growth through senior executive control, himself.

Of the $52 billion in asset value Buffett owns he only employs about 40 people and he does not personally own a cell phone or computer. He reads, makes a few calls, drinks a few cokes, and plays a game of bridge when he runs into a good friend like Bill Gates. Sounds like a great life, doesn't it? All you have to do is build a business and invest in established companies with the funds from the original company. Buffett started at $100 with his first partnership. Sounds easier said than done, doesn't it? Prove it.

Buffett Documentary