An article in the Financial Post was titled: “Warren Buffett isn’t just a great investor. He’s the best investor, study finds“.
Buffet’s strategy – leverage into cheap, safe, quality investments
(picture credit Bloomberg)
The article went on to reference a study which showed that Buffet’s investment company, Berkshire Hathaway Inc., has done better than every long-lived US stock and mutual fund. In fact, he has more than doubled their performances.
What is his secret?
The article said: “The review of Buffett’s investments concluded he has been rewarded for his use of leverage, coupled with a focus on cheap, safe, quality shares.”
A leveraged purchase on a safe quality investment.
Famously in an interview in February of 2012 Warren Buffet was quoted as saying ‘I would buy up a couple hundred thousand single-family homes if I could’. He could see the potential in the market and how many an investor wished they had taken something from Warren’s call on the housing market as the last year and half has seen prices rocket.
Now for sure I know that I am not a Warren Buffet. I don’t have the financial acumen or drive that he does. However, I do know that I can follow the same investment strategy in the purchase of quality property.
I would argue that:
- Nothing is more stable and safe in the long run than property.
- It is possible to leverage an investment in property.
- Right now there are cheap but quality properties on the market.
The question is, will we have the courage to act or will we languish in procrastination and fear?
Updated/Aktualizováno: December 4, 2014,
