Of course, this myth of making wealth no longer exists. Now, if you want to invest in Berkshire Hathaway as a shareholder, you must be a rich man first, because it costs $430,000 to buy a share of Berkshire Hathaway. It seems that if you want to be a billionaire now, you must first become a millionaire.
Speaking of Berkshire Hathaway, it is quite legendary. Many people thought it was an investment company from the beginning, but it wasn't. This is an insurance company. As early as 40 years ago, it was a textile factory on the verge of bankruptcy, but after Warren Buffett took over, it became one of the best companies in the world through a series of miraculous operations.
How did Buffett become attached to Berkshire Hathaway? Speaking of it, it was in the 1960s. At that time, Buffett was already a big shot in the investment world. His main idea of stock selection is value investment, that is, to find out those companies whose stock value is higher than the price from hundreds of companies. After careful selection, he found Berkshire Hathaway. At that time, it was still a textile company, with a share price of less than $7, but its value per share exceeded $20. As a result, Buffett decisively bought this company, but it became the "Waterloo" of his investment career. With the textile industry becoming more and more depressed, Buffett also lost a lot of money. But this legend can get up from where he fell. Buffett did not sell the company, but reorganized it into an insurance company, and its share price changed from the initial $7 to nearly $400,000 in early 2022.
Why did Buffett suddenly choose the insurance industry? This is mainly related to the characteristics of the insurance industry, mainly three points: long-term, stable and sufficient cash flow. Because insurance companies have huge cash flow, Buffett can easily get a lot of long-term stable funds in a short time, and he will reinvest them directly. And then generate more income. At the same time, he bought many insurance stocks through mergers and acquisitions, such as GEICO in the United States, which brought 50 times the income to Buffett in 20 years. At the same time, he gradually expanded the overseas insurance market. For example, on February 9, 20 14, Berkshire Hathaway was granted a license to sell non-life insurance in Singapore. This is the first time that Berkshire Hathaway has obtained such a license in Asia, and it has begun to enter the Asian insurance market through this company.
Of course, Buffett can accumulate so much wealth for Berkshire Hathaway in 40 years, as long as he also benefits from his investment philosophy and chooses many good companies. For example, Apple, Coca-Cola, Kraft Foods, including BYD in China, and so on, are really too many.
Simply speaking, the success of Berkshire Hathaway is entirely due to the continuous practice and success of Warren Buffett's personal investment concept, which is also related to the general trend of the US stock market from weak to strong after the 1960s. A person's success is due to personal efforts, whether he can seize the wind of the times. Finally, let's review a three-point investment concept of Ba Shen, hoping that everyone can have their own gains on the road of wealth.
Find a good company with low price.
Speculate and buy at a low price
Long-term holding, waiting for the high return of enterprise growth.