Focus on Warren Buffett: a renowned investor

Warren Buffett, the CEO of Berkshire Hathaway, is one of the most well-known investors in the world. As of February 2025, his fortune stands at $155 billion, according to Forbes, making him the sixth richest person on the planet.

A promising young talent

Warren Buffett is one of the most respected and admired figures in finance today. Born in 1930 in Omaha, Nebraska, he showed a keen interest in business and investing from an early age. At just 11 years old, he purchased his first shares and quickly began to grasp the mechanics of the stock market.

He pursued his studies at the University of Nebraska before attending Columbia Business School, where he was profoundly influenced by Benjamin Graham, the father of value investing. This strategy involves buying stocks that are undervalued by the market and holding them long-term to maximize returns.

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The creation of Berkshire Hathaway

After working for Benjamin Graham for a few years, Warren Buffett returned to Omaha and founded his own investment fund. In the 1960s, he acquired a struggling textile company, Berkshire Hathaway, which later became his primary investment vehicle.

Through disciplined management and a rigorous investment strategy, Buffett transformed Berkshire Hathaway into a global conglomerate, holding significant stakes in some of the world’s most successful companies, such as Coca-Cola, Apple, American Express, and Geico.

A unique investment philosophy

Warren Buffett is a staunch advocate of long-term investing. Unlike traders who aim for quick profits through speculation, Buffett bases his strategy on fundamental analysis. He invests in businesses with a durable competitive advantage and strong management, such as Gillette, Coca-Cola, and Duracell batteries. Because of this approach, The Financial Times has described him as a promoter of “rentier capitalism.”

His philosophy is built on several key principles:

• Buying strong businesses: Buffett prioritizes companies with solid fundamentals, stable profitability, and dominant market positions.
• Avoiding the herd mentality: He stays away from market fads and prefers to buy when others panic, allowing him to acquire assets at attractive prices.
• Keeping it simple: He emphasizes the importance of staying within one’s circle of competence and investing only in businesses one understands. As a result, Buffett’s fortune is concentrated in a limited number of companies, avoiding excessive diversification, which could dilute performance.
• Holding stocks for the long term: He prefers holding investments for at least five years, which not only maximizes compounding returns but also reduces transaction fees and capital gains taxes.
• Active involvement in management: In companies where he holds significant stakes, such as The Washington Post, he actively participates in decision-making, allowing him to generate above-average returns.

Thanks to his investment strategy, Berkshire Hathaway has achieved an average annual return of over 20% since the 1960s, an unprecedented performance over such a long period.

Warren Buffett’s strategy in times of crisis

In late 2024, Warren Buffett took an unusual approach that surprised the markets. Contrary to his traditional long-term, patient investing style, he made no significant investments while executing massive asset sales. He notably sold $50 billion worth of Apple shares, as well as a substantial stake in Bank of America, reducing his holding below the 10% threshold. These strategic moves reflect an increased level of caution due to economic uncertainty, persistent inflation, and rising interest rates.

Thanks to these sales, Berkshire Hathaway amassed a record cash reserve, reaching $334 billion by fall 2024, according to Forbes. This strategy contrasts with Buffett’s classic approach of investing in undervalued businesses rather than holding excessive cash reserves. This positioning has fueled speculation about a potential major acquisition, especially since Buffett is known for deploying large sums during market downturns.

However, in November 2024, Berkshire Hathaway invested $549 million (€521 million) in Domino’s Pizza. While this may seem like a relatively small deal given the company’s financial power, it demonstrates Buffett’s continued interest in stable, profitable businesses with proven business models.

Despite his cautious stance, Warren Buffett continues to grow his fortune, outperforming other top billionaires. While many ultra-wealthy individuals have seen their net worth fluctuate amid economic uncertainty, Buffett is the only member of the world’s top 10 richest individuals to have increased his wealth in February 2025. This further highlights his ability to navigate economic cycles wisely and capitalize on opportunities, even in times of volatility.

As markets speculate on Buffett’s next moves, one key question remains: Is he preparing for a major acquisition, or is he waiting for a sharper market correction before making his next big bet? One thing is certain—at 94 years old, he continues to shape the world of investing with the discipline and foresight that have defined his legendary career.