If Warren Buffett gets investment advice, shouldn’t you?

If Warren Buffett gets investment advice, shouldn’t you?
05 Apr 2017

Warren Buffett is considered by many to be the “greatest investor of all time” taking his company Berkshire Hathaway (named after a failing textile mill Warren bought) from $19/share in 1964 to over $220,000/share today. Berkshire is a holding company that not only buys shares of company stock (like you and me), but also owns companies outright, including insurance, energy, retail, and even the largest railroad in the United States.

With such a great track record, why would Warren “the great” need investment advice today?  It just so happens, Warren has always received investment advice. First from his teacher and mentor Benjamin Graham (author of the intelligent investor) and later by Charlie Munger (Co-Chairman and partner at Berkshire Hathaway). The advice Warren received by Ben came early in Warren’s career and Charlie’s advice came later, here’s the difference:

Ben Graham’s advice: Find “OK” companies and buy them at a very low price; or better yet, buy companies “dirt cheap” with one last “gasp” left in them and sell them at a big profit. Like finding a cigar butt on the street that has one more smoke left in it… no cost to you, but one more puff left (gross, but you get the point.)

Charlie Munger’s advice: Buy great companies at a fair price and hold on to them “forever.”  Charlie is the reason why Berkshire Hathaway is the largest shareholder of the Coca-Cola companies.

What stage of investing are you?  Who is giving you investment advice?  In today’s uncertain and fast-paced world, it may not be as simple as “drinking coke” and “smoking cigars” anymore.

 

Jonas Everett

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Jonas Everett

Jonas C. Everett is originally from Cedar Rapids, Iowa, where he still resides with his wife, JoDee, and daughters, Ella and Addison. He graduated from the University of Northern Iowa in 1993 where he majored in Communications. He has 22 years of experience in the investment industry and estate planning business. He is currently a Partner of “Premier Investments of Iowa, Inc.” Jonas is also the founder and creator of “Lighted Tunnel Succession Systems,” which can be found on www.lightedtunnel.com. The last 10 years, he has been in charge of mergers and acquisitions for Premier Investments of Iowa, Inc. In 2011, Jonas founded the National Association of Retired Insurance Agents, to help retiring insurance agents implement their own business succession plans. His main focus is Estate Planning and Investments for Senior Citizens and Pre-Retirees, and he also specializes in Retirement Income. He is a speaker for the Cedar Rapids School Buddies Program for 5th and 6th Graders. In his free time he enjoys golf, reading, and spending time with family and friends.