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Warren Buffett’s Formula for Success: One Good Decision Every Five Years

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Summary

Warren Buffett, one of the most successful people in the history of capitalism, recently proposed a theory for his own success. He summarized his 58-year career with two numbers: Berkshire Hathaway's returns over that period at 3,787,464% and the number of good decisions he said he made - one every five years. He attributes his success to making one good decision every five years. He also offered advice to other investors, stressing the importance of taking risks and investing in businesses they understand.

Q&As

What is Warren Buffett's annual letter to the shareholders of Berkshire Hathaway about?
Warren Buffett's annual letter to the shareholders of Berkshire Hathaway is a chance for him to reflect on the past year.

What two numbers did Warren Buffett use to summarize his career?
Warren Buffett used Berkshire's returns over the past 58 years (3,787,464%) and a smaller, less precise number to summarize his career.

What is the percentage return of Berkshire Hathaway over the past 58 years?
The percentage return of Berkshire Hathaway over the past 58 years is 3,787,464%.

What theory did Warren Buffett propose for his own success?
Warren Buffett proposed a theory for his own success that involves making one good decision every five years.

What companies have Warren Buffett recently invested in?
Warren Buffett has recently invested in oil companies, regional banks, Toronto-Dominion Bank, First Horizon, Paramount, and Jeffrey Epstein.

AI Comments

👍 Warren Buffett's formula for success is inspiring and demonstrates the power of making wise decisions.

👎 Warren Buffett's success may be difficult to replicate, as it requires making a good decision every five years.

AI Discussion

Me: It's about Warren Buffett's formula for success. He suggests that one good decision every five years may be the key to success.

Friend: That's really interesting. It seems like a lot of success depends on making the right decisions. What are the implications of this article?

Me: Well, the implication is that success is not necessarily about making a lot of decisions, but rather making the right ones. This means that taking time to think through decisions is important. It also suggests that strategic planning and decision-making can be the key to success.

Action items

Research Warren Buffett’s investment strategies and apply them to your own investments.
Make a plan to make one good decision every five years.
Take advantage of discounts and coupons from online retailers to save money.

Technical terms

Berkshire Hathaway: A multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. It wholly owns GEICO, Duracell, Dairy Queen, BNSF, Lubrizol, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, and NetJets, and also owns 38.6% of Pilot Flying J.
Returns: The amount of money gained or lost on an investment over a period of time.
Capitalism: An economic system in which private individuals or businesses own capital goods and are able to make a profit by investing and producing goods and services for sale.
Shareholders: A person, group, or company that owns at least one share of a company’s stock.
Ruminated: To think deeply and at length about something.
Astonishing: Extremely surprising or impressive.
Seditious Conspiracy: A crime involving an agreement between two or more people to commit an illegal act that is intended to overthrow the government or to disrupt the peace of a nation.