Account Info
Log Out
No matches yet
Operations too frequent. Please try again later.
Please check network settings and try again Refresh Refresh
History record delete
    Quotes All >
      News All >
        Log in to access Online Inquiry

        Invest Like Buffett

        Views 6832022.09.21

        The secret ingredients of Berkshire's success

        article image

        The preview webinar of Berkshire AGM was held by Yahoo Finance this week. The webinar mostly discussed the achievement and success of Berkshire Hathaway and how it is different from other investment firms. Many believe it was largely associated with Berkshire Hathaway’s business culture.

        What is the Berkshire culture?

        We all heard of Buffett, but not a lot of people can answer the question of what the Berkshire culture is.

        article image Poll Result on preview webinar of Berkshire Shareholder Meeting

        Based on the poll result, most people believe that permanence and long time horizon is the most distinctive aspect of Berkshire culture.

        Permanence and long-term focus business objective

        Raised by the most famous long-term investor Warren Buffet, Berkshire Hathaway is a true long-term focused investment firm. During the meeting, one of the attendance said: many other investment companies who try to copy the success of Berkshire failed as they could not keep long-term oriented and turn to short-term objectives.

        Trust-based business culture

        Berkshire’s reputation is guarded by this culture for many years. Buffet himself explained:

        [Some organizations] with the biggest compliance departments, like Wall Street, have the most scandals. It’s not so simple that you can make your behavior better automatically just by making the compliance department bigger. The greatest institutions... select very trustworthy people, and they trust them a lot... There’s so much self-respect you get from [being] trusted and [being] worthy of the trust that [the] best compliance cultures are the ones which have this attitude of trust. This general culture of trust is what works. Berkshire hasn’t had that many scandals of consequence, and I don’t think we’re going to get huge numbers either.
        -Warren Buffet

        Decentralized/ Autonomous managers

        article image Preview webinar of Berkshire Shareholder Meeting

        Buffett keeps Berkshire so simple that there is not even an organizational chart. If there is, it would be similar to the chart shown, which is primitive compared to other enterprises of this size. As a company grows ever larger, no manager can master everything. Autonomous decentralization keeps the company efficient and effective decision-making by having managers closest to the issue. 

        Quality Shareholders

        Last but not least, quality long-term shareholders are also essential to Berkshire’s achievement. Berkshire has nearly 30% of individual investors who held their Berkshire stocks for years. They stood with the company even when the company didn’t perform as expected. And Berkshire has brought them substantial investment returns.

         Time is the friend of the wonderful company, the enemy of the mediocre. 
        -Warren Buffet

        The excellent culture of the Berkshire company has been proven to be effective and is the essential component to the great success of the Berkshire conglomerate. As we study the experience of Berkshire, it’s inspirational to see how they become the evergreen tree of investment. 

        Trade like a pro with moomoo

        Get free stock and start your professional trading today

        Terms and conditions apply right-arrow

        This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.

        Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.

        In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).

        In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

        In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites and Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.