Super Investor #26 in our series is Warren Buffett – The Most Famous Value Investor of All Time. Warren Buffett is a name synonymous with investing success. As Chairman and CEO of Berkshire Hathaway (BRK.A, BRK.B), he has built one of the greatest financial empires in history by following a disciplined, long-term value investing approach. His strategy focuses on buying high-quality businesses with strong economic moats, holding them for decades, and letting compound growth work its magic.
We have covered Warren Buffett’s wisdom many times on this website—analyzing his investment principles, portfolio moves, and legendary quotes. However, it was an oversight not to feature him in our Super Investor series sooner. No list of great investors is complete without him. In this article, we’ll explore Buffett’s background, investment philosophy, notable investments, and the timeless lessons individual investors can apply.
Who is Warren Buffett?
Influences & Education
Warren Buffett was born in 1930 in Omaha, Nebraska. His father, Howard Buffett, was a stockbroker and congressman, which exposed young Warren to investing at an early age. By the time he was 11, he made his first stock purchase: three shares of Cities Service Preferred.
Buffett’s most significant academic influence was Benjamin Graham, the father of value investing. He studied under Graham at Columbia Business School, where he absorbed principles of deep-value investing. Graham’s book, The Intelligent Investor, became Buffett’s investing bible.
Career Beginnings
After graduating, Buffett worked for Graham’s investment firm, Graham-Newman Corporation. This experience cemented his belief in buying stocks below intrinsic value, but Buffett later modified Graham’s strict value investing approach. Instead of buying merely cheap companies, he learned to buy great companies at a fair price—an insight he credited to his long-time business partner, Charlie Munger.
In 1956, Buffett started his own investment partnership, delivering extraordinary returns before dissolving it in 1969 to focus entirely on Berkshire Hathaway, which he had begun acquiring in the early 1960s.
Investment Philosophy & Strategy of Warren Buffett
Buffett’s investment philosophy revolves around a few core principles:
- Buy quality businesses with strong economic moats – Competitive advantages protect companies from rivals and allow them to compound earnings over time.
- Hold investments for the long run – Buffett believes in “forever” investing, rarely selling stocks unless the company’s fundamentals change.
- Avoid unnecessary risk and speculation – He never chases trends, penny stocks, or unproven businesses.
- Value over price – A company’s intrinsic value matters more than its short-term stock price fluctuations.
- Invest in what you understand – Buffett famously avoids technology startups and cryptocurrency because they fall outside his circle of competence.
Buffett’s Approach to Stock Selection
Buffett evaluates investments using a simple but effective checklist:
- Does the company have a durable competitive advantage?
- Is it run by competent, shareholder-friendly management?
- Is it financially strong with high return on equity?
- Can it reinvest earnings for long-term growth?
- Is the stock priced reasonably compared to intrinsic value?
These criteria explain why Berkshire Hathaway owns major stakes in Apple (AAPL), Coca-Cola (KO), and American Express (AXP)—companies with strong brands, steady cash flows, and dominant market positions.
Notable Investments & Track Record of Warren Buffett
Iconic Investments
Some of Buffett’s most legendary investments include:
- Coca-Cola (KO) – In the late 1980s, Buffett invested over $1 billion in Coca-Cola, seeing its strong brand and global reach as unbeatable advantages. Today, this stake has grown to over $20 billion, proving the power of buy-and-hold investing.
- Apple (AAPL) – Though Buffett historically avoided tech stocks, he recognized Apple’s economic moat in the smartphone ecosystem. Since initiating a position in 2016, Apple has become Berkshire’s largest holding.
- Geico (Wholly Owned) – Buffett started investing in Geico in the 1950s after learning about it from Benjamin Graham. He eventually acquired the company outright, making it a crown jewel of Berkshire Hathaway’s insurance empire.
Performance Overview
Since Buffett took control of Berkshire Hathaway in 1965, the stock’s compounded annual growth rate (CAGR) has outperformed the S&P 500 by a wide margin. While markets have seen many booms and busts, Buffett’s patient, disciplined approach has consistently delivered superior returns.
Biggest Investing Mistakes
Even Buffett isn’t perfect. He has admitted to making costly errors, such as:
- Buying Berkshire Hathaway (BRK.A, BRK.B) in the first place – Buffett originally bought shares of the struggling textile company out of spite, which he later regretted.
- Missing out on Amazon (AMZN) and Google (GOOGL) – Buffett acknowledged that he failed to recognize their potential early on.
Warren Buffett’s Lessons for Individual Investors
Buffett’s principles provide a blueprint for everyday investors:
✔ Think long-term – Ignore short-term noise and let compounding work.
✔ Invest in businesses, not stocks – Treat stocks as ownership in real companies.
✔ Avoid market speculation – Stay away from meme stocks and hype-driven investments.
✔ Have a margin of safety – Buy at a discount to intrinsic value to protect against mistakes.
✔ Stick to your circle of competence – Invest only in businesses you understand.
Buffett’s Challenges & Criticism
Buffett has faced criticism, especially in recent years:
- Sitting on too much cash – Berkshire often holds over $100 billion in cash, frustrating investors who want quicker deployments.
- Avoiding growth stocks for too long – He dismissed technology companies for decades, missing early opportunities in Amazon and Microsoft (MSFT).
Despite this, Buffett’s discipline has proven more right than wrong over time.
Warren Buffett’s Legacy & Influence
Buffett has inspired countless investors, including:
- Bill Ackman – A billionaire investor who follows Buffett’s long-term, quality-company approach.
- Monish Pabrai – A fund manager who models his portfolio on Buffett’s principles.
Buffett’s wisdom has also been immortalized in books like The Essays of Warren Buffett and The Snowball.
Quotes & Wisdom of Warren Buffett
Buffett’s quotes distill investing wisdom into simple lessons:
📌 “The stock market is designed to transfer money from the Active to the Patient.”
📌 “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
These principles continue to guide investors worldwide.
Conclusion: Why Warren Buffett is The Most Famous Value Investor of All Time
Warren Buffett’s unmatched success proves that long-term, value-driven investing works. By focusing on high-quality companies, avoiding speculation, and embracing patience, investors can achieve remarkable wealth over time.
Following Buffett’s principles won’t make you rich overnight—but it will put you on the path to sustainable, long-term success.
Happy Investing!