Despite the fact that Warren Buffett has been recently criticized, his strategy certainly still pays off.
Like any other investor, Warren Buffett has had some bad days. However, last week Berkshire Hathaway (BRK) stock gained about 23% while the S&P 500 fell about 29%. Berkshire’s per-share book value from the end of 2002 through the end of 2008 also grew 9.3% annually. The S&P only grew an average of 1.5% in that time.
Buffett’s strategy is to look into true bargains many investors have feared. As the current crisis continues to work itself out, fears will eventually diminish more and soon enough investors will recognize what they have been missing out on. This is Buffett’s strategy and it has and is currently working out for him and Berkshire Hathaway.
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