#WarrenBuffett A #Genius or Just #Lucky
Warren Buffett’s track record is nothing more than random chance. They argue that Warren Buffett exists because he must exist. We know that if the #stockmarket returned 10 per cent in any given year that some people matched the market #return, some people underperformed and some people #outperformed. We also know that a few people lost every penny (e.g. buying a single stock that went bust) and that a few people more than doubled their #money. Buffett has also employed a #method which has been #successful for other investors. #Valueinvesting has been a popular #investment #strategy for decades, and the principles it promotes are generally sound and logical methods of generating relatively high returns in the long run.
While Warren Buffett’s level of #success may never be replicated by another investor, this does not mean he has just been plain #lucky. He has generated S&P 500-beating returns over a long period and in a mix of economic environments. He has taken risks and adapted his #style. As such, his success appears to be due to #skill, rather than luck.
#Key to His #Success is #Luck
Buffett’s made a lot of money — for those who like playing around with numbers, like Buffett does, his #fortune works out to millions of dollars per each day of his life. But even with Berkshire Hathaway shares up about 20 percent in the past year — easily outpacing the S&P 500 and sitting near an annual high — and Bank of America, one of his shrewd post-crisis financial investments, reaching a $12 billion paper #profits.
But luck, or winning the “#ovarian #lottery,” as Buffett called it, has been as instrumental as any factor in building his #billionaire fortune.
Luck doesn’t get the recognition it deserves as a success #factor. Analysis of the traits of billionaires and the effort to uncover their #secret to success tend to go granular. Some American billionaires and captains of industry attempt to encapsulate business #brilliance in methodical form and with their own pen, such as Koch Industries’ Charles Koch, who shared his market-based #management approach in his book “The #Science of Success.”
But luck matters.
“Having the good luck to win the ‘ovarian lottery’ is a major determinant in success in life in general — and in business in particular.
Warren Edward Buffett is an American #business #magnate, #investor, and #philanthropist who serves as the chairman and CEO of #BerkshireHathaway. He is considered one of the most #successful investors in the #world and has a net worth of US$84 billion as of June 3, 2018, making him the third #wealthiest person in the world.
Buffett has been the chairman and largest shareholder of Berkshire Hathaway since 1970, and he has been referred to as the “Wizard”, “Oracle”, or “Sage” of Omaha by global #media outlets. He is noted for his adherence to #valueinvesting and for his personal frugality despite his immense wealth. Research published at the University of #Oxford.