The miracle of "Compound Interest"

Buffett, who rarely talks about privacy in his letters to shareholders, mentioned his sister Bertie 👩🏻‍🦰 as many as 20 times. What does he want to tell investors?

Story: Bertie, born in Omaha in 1933, was also active on the Financial Market, but since 1980, she has stopped all transactions and only kept mutual funds and $Berkshire Hathaway-A(BRK.A.US)$ . In 1980, the stock price of Berkshire Hathaway's Class A shares was just over $200, but now it is $610,000. In these 44 years, Bertie, who has not made any transactions, has grown her wealth 3050 times relying on Berkshire Hathaway.

Buffett also wrote in the letter that in 1980, when Bertie was 46 years old, she made an independent decision-no longer actively changing positions, only holding mutual funds and Berkshire's stocks. In the following 43 years, she did not make any new transactions.

This decision also made Bertie a successful investor who could donate hundreds of millions of dollars.

Buffett is a very good storyteller. By mentioning his sister, he actually told a story of a misguided investor who turned over a new leaf, once again emphasizing his investment principle: the miracle of "compound interest".

To learn more about the secrets of Buffett's holdings, I recommend these two articles to everyone. One provides a detailed analysis of his 2023 Shareowner Conference, and the other describes Buffett's investment philosophy. They have been very helpful to me personally~

1. →Decoding Buffett's portfolio: insights from his stock holdings (premium course)

2. →Warren Buffett's TOP5 Ground Rules

$Berkshire Hathaway-B(BRK.B.US)$

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Adrianpoh

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