Given the track record of Warren Buffet and Berkshire Hathaway no wonder he is one of the World's richest and allowed others to build vast wealth and leave behind nice inheritances for their loved ones.
As MSN.com reported $10,000 invested with Warren Buffet for 45 years now worth $80 Million If a person had invested $10,000 on October 1 1964 (equivalent of $60,000 in todays dollars) it would now be worth $80,000,000. Annualized 20% compounded gain a year.
Only two mutual funds are anywhere close with Fidelity Magellan Fund having a return of 16.3% and Templeton 13.4%. However the difference in returns is substantial that gain on Fidelity would still be impressive but $9 million instead of $80 while the Templeton gain being $2.9. Shows the time value of money and value of compounding gains. Also by comparison the S&P 500 had the same investment been made in it would have returned $560,000.
Buffet has preached low turnover of stocks with a buy and hold mentality and has expressed the idea of being fearful when others are greedy and being greedy when others are in fear in order to get the best values.