Could investing like Warren Buffett be easier than you
think?..................................................................................................................................................................................
Among the Oracle of Omaha’s most famous maxims: Never invest
in things you can’t understand. And small companies with simple business plans
that target local markets are often easy to understand. Take a look at some of
Berkshire Hathaway’s earliest investments: In 1972 Buffett paid $25 million for
See’s Candies, a chain of sweet shops then familiar only to chocoholics in
California. In 1983 he paid $60 million for a 90 percent stake in Nebraska
Furniture Mart, largely unknown outside Omaha at the time yet already earning a
remarkable $15 million a year before taxes. In 1989 he purchased jeweler
Borsheims from members of the same family who sold him the furniture mart.
Borsheims, too, was virtually unknown outside Omaha, yet according to
Berkshire’s 1990 annual report, its sales were second only to Tiffany &
Co.’s. Berkshire still holds all three investments…………………………………………………………………………………………………………………………..
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