Buffett, the Sage of Omaha, Makes Value Strategy Seem Simple : Secrets of a High Plains Investor - The New York Times The New York Times Your Money |Buffett, the Sage of Omaha, Makes Value Strategy Seem Simple : Secrets of a High Plains Investor Search Buffett, the Sage of Omaha, Makes Value Strategy Seem Simple : Secrets of a High Plains Investor By ALINE SULLIVAN and INTERNATIONAL HERALD TRIBUNE DEC. 20, 1997 Continue reading the main story IF THE AMERICAN century were to be personified, it might well be by Warren Buffett. The so-called sage of Omaha has none of the glamour of John F. Kennedy or Marilyn Monroe, but for millions of investors he embodies the American Dream. The 66-year-old chairman of Berkshire Hathaway Corp. is as American as baseball (he is the minority owner of a minor-league team, the Omaha Royals) and apple pie (a favorite at his local steak house). But more importantly, this plain-talking man from Nebraska makes investing seem simple. He identifies companies that are undervalued and buys their stocks to keep forever.

"To invest successfully you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets," said Mr. Buffett in the most recent of his direct and often-humorous letters to shareholders. "You may, in fact, be better off knowing nothing of these. Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10 and 20 years from now." This strategy has enabled Mr. Buffet to turn a $100,000 investment 40 years ago into a company worth $57 billion and amass a personal fortune of almost $20 billion. His strategy has inspired countless imitators, a mutual fund dedicated to Omaha-style analysis and even a computer program designed to imitate his brain. Continue reading the main story Mr. Buffett's success remains unique, however. That is because his brand of value-investing is surprisingly difficult. The starting point — identifying companies that are undervalued by the market — is nearly impossible for most investors because it is so painful psychologically to buy stocks that no one else wants. It is even more difficult to buy them for keeps.

Advertisement Continue reading the main story This first step of value-investing may be difficult at the best of times but is now particularly so. "You can pay too much for even the best of businesses," Mr. Buffett said recently. "The over-payment risk surfaces periodically and, in our opinion, may now be quite high for the purchasers of virtually all stocks." Equally difficult is hanging on to the shares. "We continue to make more money snoring than when active," said Mr. Buffet in his most recent annual report. "Inactivity strikes us as intelligent behavior." That holds true even when values plunge. Mr. Buffett might have found the recent declines in the two stocks he refers to as his "inevitables" — Coca-Cola Co. and Gillette Co. — a trial. Shares in both companies slumped after they warned that a strong dollar would hurt earnings. But he is hanging on. "No sensible observer questions that Coke and Gillette will dominate their fields worldwide for an investment lifetime," he said. Another major component of Mr. Buffett's brand of value-investing is sticking to what you know. "You don't have to be an expert on every company or even many," he advised in his letter.

"You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital." Mr. Buffet's own circle of competence is large but not all-encompassing. For example, he avoids technology stocks, saying, "If there's a lot of technology, we won't understand it." Among the top holdings of Berkshire Hathaway are stakes in American Express Co., Federal Home Loan Mortgage Corp., McDonald's Corp., Wells Fargo & Co., and The Washington Post Co., which owns half of the International Herald Tribune. "This portfolio is attractive in most economic environments and particularly today, when we are seeing falling bond yields and rising earnings uncertainty," said Tom McManus, senior vice president, investment strategy, of NatWest Securities Corp. in New York. "Warren Buffett tends to buy businesses which have very reliable earnings prospects. He owns companies that have high probability of delivering a reasonable growth rate." Mr. Buffett is not infallible. His $385 million investment in USAir in 1989 was followed almost immediately by the company's collapse. The company later recovered under new management, however, and Berkshire Hathaway lost nothing on the deal.

Advertisement Continue reading the main story He is the first to acknowledge his limitations, warning shareholders that Berkshire's large capital base — ranking it among the 10 largest U.S. companies by capital — tends to dampen returns. He also cautioned that the favorable business climate in the United States over the past 15 years will eventually end, saying that "the experience of a bull market dulls the senses." But his strategy should, in theory, work equally well outside America. Some stock market analysts say that price-to-earnings ratios in many non-U.S. companies mask much greater underlying values thanks to aggressive depreciation and hidden cash reserves. For further information: - FOCUS TRUST, an $8 million no-load open- ended fund is run by Robert Hagstrom Jr., based on Mr. Buffett's methodology. Telephone 1 610 293 6490. Mr. Hagstrom also is the author of "The Warren Buffett Way" (John Wiley & Sons, New York, $24.95 hardback, $14.95 paperback). Another book is "Warren Buffet Speaks," by Janet Lowe (Wiley, $16.95).

DAVID BRAVERMAN, investment officer at Standard & Poor's Corp. in New York, developed a computer program based on Mr. Buffet's strategy. The results are published twice a year in Standard & Poor's "Outlook." Telephone: 1 212 208 8000, or, toll-free in the United States, 1 800 852 1641. COMPANY ORIGINAL COST VALUE (in millions) (in millions) American Express Company $1,392.7 $2,794.3 49,456,900 shares The Coca-Cola Company 1,298.9 10,525.0 200,000,000 The Walt Disney Company 577.0 1,716.8 24,614,214 shares Federal Home Loan Mortgage Corp.

333.4 1,772.8 64,246,000 shares The Gillette Company 600.0 3,732.0 48,000,000 shares McDonald's Corp. 1,265.3 1,368.4 30,156,600 shares The Washington Post Company 10.6 579.0 1,727,765 shares Wells Fargo & Company 497.8 1,966.9 7,291,418 shares Others 1,934.5 3,295.4 Total Common Stocks: $7,910.2 $27,750.6 CONTACTS: Nebraska Famous People: History and Biographies Nebraska Famous People Famous Americans: History and Biographies Links to histories and biographies of the famous people of Nebraska. Many famous people of Nebraska have made significant contributions to the history of our nation and the state of Nebraska.

These famous Americans, famous entertainers, famous players, famous scientist, famous singers, famous statesmen, famous women, heroes, great explorers, and others Nebraska famous Americans have all made Nebraska their home. This list includes Nebraska historical figures, celebrities and those individuals of Nebraska who have influenced the lives of others. Famous People from Nebraska Grace Abbott (1878 - 1939) Social reformer that helped to write the Social Security Act; born in Grand Island. Grover Cleveland Alexander (1887 - 1950) One of the greatest pitchers in baseball history; born in Elba. Fred Astaire (1899 - 1987) Born Frederick Austerlitz in Omaha, Nebraska, he and his older sister Adele showed the ability to dance at a very early age. In 1904, Fred's mother moved both children to New York City where they enrolled in a school for the performing arts and became involved in the vaudeville circuit.

Because of World War I, they changed their Austrian name to "Astaire." Adele retired from the stage in 1932 following her marriage, but Fred continued, and is most well known for his work with Ginger Rogers. He appeared in countless movies and continued working on the stage and on television until he was well over 70 years of age. Marlon Brando (1924 - ) Born in Omaha, Nebraska, Marlon Brando moved to New York to study acting after he was expelled from military school. He is best known for one of his earliest roles as Stanley Kowalski in Tennessee Williams's A Streetcar Named Desire, although younger fans may best remember his portrayal as Mafia chief Don Corleone in The Godfather, a role for which he received the Academy Award. Warren Buffett (born August 30, 1930) is an American business magnate, investor, and philanthropist. Buffett was born in 1930 in Omaha, Nebraska, the second of three children and only son of U.S. Representative Howard Buffett, a fierce critic of the interventionist New Deal domestic and foreign policy, and his wife Leila.

Buffett's DNA report revealed that his paternal ancestors hail from northern Scandinavia, while his maternal ancestors hail from Iberia (present-day Spain) or Estonia. Buffett is widely considered the most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway and consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and as the third wealthiest person in 2011. In 2012, American magazine Time named Buffett one of the most influential people in the world. Buffett is called the "Wizard of Omaha", "Oracle of Omaha", or the "Sage of Omaha" and is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. Buffett is also a notable philanthropist, having pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Gates Foundation. On April 11, 2012, he was diagnosed with prostate cancer, for which he successfully completed treatment in September 2012.

Johnny Carson (1925 - 2005) Johnny Carson is best known for hosting The Tonight Show for over thirty years, but began his "show business" career doing magic tricks at the local Elks Lodge. He served in the Navy during World War II, and then graduated from the University of Nebraska before working in local radio and television. His first national television project was a daytime quiz show on ABC called "Who Do You Trust?" Susette La Flesche , (later Susette LaFlesche Tibbles) also called Inshata Theumba (Bright Eyes) (1854 - 1903), was a well-known Native American writer, lecturer, interpreter and artist of the Omaha tribe in Nebraska. La Flesche was a progressive who was a spokesperson for Native American rights. She was of Ponca, Iowa, French and Anglo-American ancestry. In 1983 she was inducted into the Nebraska Hall of Fame. Susette, also called Inshata Theumba (Bright Eyes), was one of five children born to Joseph LaFlesche and his wife Mary Gale.

Joseph was the son of the French fur trader Joseph La Flesche, a wealthy immigrant from France, and his Ponca wife, Waoowinchtcha, reportedly a relative of the Omaha chief Big Elk Henry Fonda (1905 - 1982) Actor who won an Academy Award for On Golden Pond; born in Grand Island. Gerald R. Ford (1913 - ) 38th President of the United States; born in Omaha. J oyce C. Hall Born in 1891 in David City, Nebraska, the son of Nancy Dudley Houston and George Nelson Hall, a traveling minister who provided sparingly for his wife and children. When Hall was seven, his father abandoned the family. Hall worked odd jobs, mostly involving sales, from age 8 on. Hall's response to his father's mantra, "the Lord will provide," was, "It's a good idea to give the Lord a little help." In 1905, Hall and his brothers invested US$540 to buy picture postcards to sell to store owners and other dealers around their area.

They also convinced some of the traveling salesmen who came into the Halls' bookstore, which Joyce Hall's older brothers bought with a partner in 1902, to add the postcards to their sales territories. Hall conceived the Norfolk Post Card Company in 1908 in Norfolk, Nebraska. Lafayette Ronald Hubbard (March 13, 1911 - January 24, 1986), Lafayette Ronald Hubbard, born in 1911, in Tilden, Nebraska was better known as L. Ron Hubbard and often referred to by his initials, LRH, was an American pulp fiction author and the founder of the Church of Scientology. Malcolm X (1925 - 1965) Born Malcolm Little in Omaha, Nebraska, he saw his childhood home in Lansing, Michigan burned by the Ku Klux Klan. Shortly afterwards, his father was murdered and his mother was placed in a mental institution. He spent much of his childhood in juvenile detention homes. In 1946, while serving time in prison for burglary, he converted to the Black Muslim faith, and when he was released, went to work with the leader of the Nation of Islam, Elijah Muhammad.

At that time, he changed his name to Malcolm X using the "X" to signify his belief that his last name had been chosen for him by white slaveholders. Malcolm X quickly became a leader in the radical black power movement, calling for black separatism, and supporting the use of violence when necessary to accomplish the movement's goals. However, after a trip to Mecca in 1964, Malcolm X began to moderate his views, and eventually left the Nation of Islam and converted to orthodox Islam. He was murdered by a group of Black Muslims in 1965. J. Sterling Morton (1832 - 1903) Secretary of Agriculture and founder of Arbor Day; from Nebraska City. Kay Orr - (born January 2, 1939), is an American Republican politician from Nebraska. She served as the 36th governor of Nebraska from 1987 to 1991 Red Cloud (1822 - 1909) Oglala Sioux leader who defeated the US Army in many battles; born in Nebraska. More Famous People of Nebraska Find more more Nebraska famous people below.

You may not even realize many of these famous people were born in Nebraska or notable associated with Nebraska, including actors, actresses, explorers, historical figures, inventors, musicians, novelists, professional athletes, important politicians, singers, sport stars and more. Max Baer boxer, Omaha Bil Baird puppeteer, Grand Island George Beadle geneticist, Wahoo Dick Cavett TV entertainer, Gibbon Montgomery Clift actor, Omaha Ruth Etting singer, actress, David City Jay W. Forrester inventor, Climax Bob Gibson baseball player, Omaha Hoot Gibson actor, Tememah Howard Hanson composer, conductor, Wahoo Leland Hayward producer, Nebraska City David Janssen actor, Naponee Francis La Flesche ethnologist, Omaha Frank W. Leahy football coach, O'Neill Irish McCalla actress, Pawnee City Dorothy McGuire actress, Omaha Roscoe Pound educator, legal scholar, Lincoln Mari Sandoz author, Sheridan Cty Standing Bear Indian rights advocate, leader Paul Williams singer, composer, actor, Omaha Don Wilson announcer, Lincoln Julie Wilson singer, actress, Omaha Darryl F.

Zanuck film producer, Wahoo US Famous People Learn history through the biographies of the famous people from your state. Colleges & Universities With access to over 8,500 schools to choose from! Get Your Degree! 25 Best Warren Buffett Quotes -- The Motley Fool Search: 25 Best Warren Buffett Quotes Warren Buffett is known as the sage of investing for his quotes on everything from business, life, investing, success, and failure. Dan Dzombak ( TMFDanDzombak ) Sep 28, 2014 at 1:05PM Warren Buffett is a true genius as he is able to simplify complex ideas into the best quotes that will stand the test of time. Warren Buffett spent his life dispensing advice to all who would listen, earning him the nickname of the Oracle of Omaha. In the 1960s, this advice came about twice a year in letters to investors in his investment partnerships. Starting a few years later, Warren Buffett's wisdom was distilled through the Berkshire Hathaway annual meeting and the annual shareholder letter, and in the past 20 years, Warren Buffett has become a household name through appearances on TV and interviews in magazines.

Read on for Warren Buffett's best quotes on life, investing, and his top five insights. On life 1. "You only have to do a very few things right in your life so long as you don't do too many things wrong." 2. "Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks." 3. "It is not necessary to do extraordinary things to get extraordinary results." 4. "What we learn from history is that people don't learn from history." 5. "Chains of habit are too light to be felt until they are too heavy to be broken." 6. "There seems to be some perverse human characteristic that likes to make easy things difficult." 7. "Nothing sedates rationality like large doses of effortless money." 8. "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." 9. "It's better to hang out with people better than you. Pick out associates whose behavior is better than yours and you'll drift in that direction." 10.

"Long ago, Ben Graham taught me that 'Price is what you pay; value is what you get.' Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." On investing 1. "The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd." 2. "Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant." 3. "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over." 4. "In the short term, the market is a popularity contest. In the long term, the market is a weighing machine." 5. "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble" 6. "Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing." 7. "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes.

Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value." 8. "The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage." 9. "I am a better investor because I am a businessman, and a better businessman because I am an investor." 10. "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Top five insights Einstein said there are 5 ascending levels of intelligence: Smart, Intelligent, Brilliant, Genius, Simple. Warren Buffett's top 5 insights each explain a truth about life or investing in the simplest way possible. 1. "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." It is a gross oversimplification to say that the key to investing is to buy low and sell high. This quote from when Warren Buffett has been the basis of his most successful investments over time and the basis of how you could have avoided the last few bubbles. 2.

"I tell college students, when you get to be my age you will be successful if the people who you hope to have love you, do love you." Warren Buffett has spent a lifetime studying conventionally successful people. It's important to hear that at the end of the day, money is not the thing that matters most in life. 3. "The difference between successful people and really successful people is that really successful people say no to almost everything." Numerous greats including Steve Jobs, Bill Gates, and Warren Buffett have attributed their success to focus. Many people have long to-do lists and work on becoming more productive, when in fact, having a not-do list is more important if you want to do great things. 4. "I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing." People succeed in life countless different ways but failures group around a few key themes. As such, you learn more from people's failures than people's successes. 5. What an investor needs is the ability to correctly evaluate selected businesses.

Note that word "selected": You don't have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital. One of the quotes I hate the most in investing is Peter Lynch's "Buy what you know" as it oversimplifies investing. The above quote is sort of the same idea but highlights that the important thing is being able to evaluate companies and also avoid companies you don't understand. It's that simple. Warren Buffett is quoted so much because he has developed a great deal of wisdom over his lifetime. How did he do it? The secret to Warren Buffett's success The secret to Warren Buffett's success is that he continuously learns. Buffett is a far better investor today than he was 50 years ago. As Charlie Munger has explained: Warren Buffett has become one hell of a lot better investor since the day I met him, and so have I. If we had been frozen at any given stage, with the knowledge we had, the record would have been much worse than it is.

So the game is to keep learning, and I don't think people are going to keep learning who don't like the learning process. While you may pick up a nugget of wisdom or two from the 25 best Warren Buffett quotes , committing yourself to a lifetime of learning is the best advice you should take from Warren Buffett. Dan Dzombak can be found on Twitter @DanDzombak , on his Facebook page DanDzombak , or on his blog where he writes about investing, happiness, life, and success . The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy . Author 101 Inspiring Warren Buffett Quotes On Investing Image Credit: Javier Warren Buffett better known as the “Oracle of Omaha”, “Sage of Omaha” or “Wizard of Omaha” is obviously the most successful investor of all times. He is not only known for his investment philosophy but also for his great quotes on investing.

So, I’m going to share with you 101 quotes by Warren Buffett on investing that I find inspiring. Also, I guess you might already know about his unique way of writing annual letters to shareholders . So I’m going to include some famous quotes from his annual letters as well. 101 Famous Quotes by Warren Buffett on Investing “Never invest in a business you cannot understand.” “Always invest for the long term.” “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.” “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” “What we learn from history is that people don’t learn from history.” “Buy a business, don’t rent stocks.” “You don’t need to be a rocket scientist.

Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” “We have long felt that the only value of stock forecasters is to make fortune-tellers look good.” “A prediction about the direction of the stock market tells you nothing about where stocks are headed, but a whole lot about the person doing the predicting.” “Someone’s sitting in the shade today because someone planted a tree a long time ago.” “I really like my life. I’ve arranged my life so that I can do what I want.” “We will only do with your money what we would do with our own.” “If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.” “I am a better investor because I am a businessman and a better businessman because I am an investor.” “Price is what you pay. Value is what you get.” “The Stock Market is designed to transfer money from the Active to the Patient.” “Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.” “I never attempt to make money on the stock market.

I buy on the assumption that they could close the market the next day and not reopen it for ten years.” “By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.” “I have pledged… to always run Berkshire with more than ample cash… I will not trade even a night’s sleep for the chance of extra profits.” “The best business returns are usually achieved by companies that are doing something quite similar today to what they were doing five or ten years ago.” “Investing is laying out money now to get more money back in the future.” “The stock market is a no-called-strike game. You don’t have to swing at everything – you can wait for your pitch.” “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” “I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.” “For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don’t understand or because they worked last week for somebody else.

The dumbest reason in the world to buy a stock is because it’s going up.” “Never give up searching for the job that you’re passionate about. Try to find the job you’d have if you were independently rich. Forget about the pay. When you’re associating with the people that you love, doing what you love, it doesn’t get any better than that.” “We don’t get paid for activity, just for being right. As to how long we will wait, we’ll wait indefinitely.” “As Buffet said in the speech, “He’s not looking at quarterly earnings projections, he’s not looking at next year’s earnings, he’s not thinking about what day of the week it is, he doesn’t care what investment research from any place says, he’s not interested in price momentum, volume or anything. He’s simply asking: What is the business worth?” “Buy companies with strong histories of profitability and with a dominant business franchise.” “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.” “Our approach is very much profiting from lack of change rather than from change.

With Wrigley chewing gum, it’s the lack of change that appeals to me. I don’t think it is going to be hurt by the Internet. That’s the kind of business I like.” “When asked how he became so successful in investing, Buffett answered: ‘we read hundreds and hundreds of annual reports every year.” “When a management team with a reputation for brilliance joins a business with poor fundamental economics, it is the reputation of the business that remains intact.” “I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” “Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.” “Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.” “Wide diversification is only required when investors do not understand what they are doing.” “You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right – that’s the only thing that makes you right.

And if your facts and reasoning are right, you don’t have to worry about anybody else.” “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” “The first rule is not to lose. The second rule is not to forget the first rule.” “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” “Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing can be wonderful.” “Our favorite holding period is forever.” “Investing is laying out money now to get more money back in the future.” “The most important thing to do if you find yourself in a hole is to stop digging.” “Money is not everything.

Make sure you earn a lot before speaking such nonsense.” “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.” “Risk comes from not knowing what you’re doing.” “Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” “The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.” “Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.” “It’s better to hang out with people better than you.

Pick out associates whose behavior is better than yours and you’ll drift in that direction.” “Risk can be greatly reduced by concentrating on only a few holdings.” “It is not necessary to do extraordinary things to get extraordinary results.” “An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business.” “Diversification may preserve wealth, but concentration builds wealth.” “Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.” “You won’t keep control of your time, unless you can say ‘no.’ You can’t let other people set your agenda in life.” “In the business world, the rearview mirror is always clearer than the windshield.” “If a business does well, the stock eventually follows.” “Cash never makes us happy, but it’s better to have the money burning a hole in Berkshire’s pocket than resting comfortably in someone else’s.” “Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.” “A public-opinion poll is no substitute for thought.” “I never buy anything unless I can fill out on a piece of paper

 my reasons.

I may be wrong, but I would know the answer to that …I’m paying $32 billion today for the Coca Cola Company because… If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money.“ “The investor of today does not profit from yesterday’s growth.“ “I knew a lot about what I did when I was 20. I had read a lot, and I aspired to learn everything I could about the subject.” “You only have to do a very few things right in your life so long as you don’t do too many things wrong.“ “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.“ “You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more.

And if you can’t write an intelligent answer to those questions, don’t do it.“ “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.“ “An investor needs to do very few things right as long as he or she avoids big mistakes.“ “Do a lot of reading.” – on how to determine the value of a business “Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.” “Only when the tide goes out do you discover who’s been swimming naked.“ “The fact that people will be full of greed, fear, or folly is predictable. The sequence is not predictable.“ “Time is the friend of the wonderful company, the enemy of the mediocre.“ “I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt.

With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.“ “We will reject interesting opportunities rather than over-leverage our balance sheet.“ “I always knew I was going to be rich. I don’t think I ever doubted it for a minute.“ “Turnarounds seldom turn.“ “If at first you do succeed, quit trying on investing.“ “I don’t measure my life by the money I’ve made. Other people might, but certainly don’t.“ “Anything can happen in stock markets and you ought to conduct your affairs so that if the most extraordinary events happen, that you’re still around to play the next day.“ “You shouldn’t own common stocks if a 50 per cent decrease in their value in a short period of time would cause you acute distress.“ “With few exceptions when a manager with a reputation for brilliance tackles a business with a reputation for poor economics, it is the reputation of the business which remains intact.“ “The business schools reward complex behavior more than simple behavior, but simple behavior is more effective.“ “It’s not debt per say that overwhelms an individual corporation or country.

Rather it is a continuous increase in debt in relation to income that causes trouble.“ “A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem.“ “You do not adequately protect yourself by being half awake when other are sleeping.“ “We like to buy businesses, but we don’t like to sell them.“ “Money to some extent sometimes let you be in more interesting environments.

But it can’t change how many people love you or how healthy you are.“ “It’s us fun being a gorse when the tractor comes along, or the blacksmith when the car comes along.“ “Enjoy your work and work for whom you admire.“ “With enough insider information and a million dollars, you can go broke in a year.“ “Read Ben Graham and Phil Fisher read annual reports, but don’t do equations with Greek letters in them.“ “In a commodity business, it’s very hard to be smarter than your dumbest competitor.“ “A hyperactive stock market is the pickpocket of enterprise.“ “Valuing a business is part art and part science.“ “Chains of habits are too light to be felt until they are too heavy to be broken.” BONUS: Quotes by Warren Buffett on… Earning: “Never depend on single income. Make investment to create a second source.” Success: “You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something.

If not, I won’t do a damn thing.” Spending: “If you buy things you do not need, soon you will have to sell things you need.” Saving: “Do not save what is left after spending, but spend what is left after saving.” Risk: “Never test the depth of river with both the feet.” Investment: “Do not put all your eggs in one basket.” Expectation: “Honesty is very expensive gift. Do not expect it from cheap people.” Humanity: “If you’re in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.” Stay inspired and embrace this new year with all the enthusiasm you have. And do share your favorite quotes on your social media channels as it might just motivate your friends and family as well! Have I missed your favorite quote by Warren Buffett? If so, let me know as a comment below! Happy Investing!

:) First Published: July, 2009; Last Updated: Wednesday, January 15, 2014 101 “Hand-picked” Warren Buffett Quotes On Investing 5 (100%) 1 vote one more quote of warren buffet “Money is not everything. Make sure you earn a lot before speaking such nonsense” Thanks Ravi for that. :) shercy ramos Truly a lot of quotes just for investing! This just shows that people are really serious about this matter. I love the first one: “Never invest in a business you cannot understand.” This should be the first thing to consider, one should understand what he is getting into. Nischint Make Money Writing Articles: 37 Websites That Pays Up To $300 For Your Guest Posts About Mahesh (@maheshone) Hey there, I’m Mahesh ( @maheshone ). I started learning and doing and experimenting web 2.0 stuff back in 2004 and eventually became a full-time computer nerd after graduation. Minterest is a digital marketing and technology journal that I founded in 2007 to feed my super curiosity (oh yeah, I’m a solo-blogger).

I write about tech, marketing, and everything in between that excites me. And I love to work with small businesses to help them get the most out of the web. Outside of that, I'm equally passionate about the financial markets and I also spend a lot of time doing random things (see random facts about me ). Say hi: @maheshone. Read More » Search Minterest Sage of Manchester? Buffett-inspired investor tops UK stock-picking league Sage of Manchester? Buffett-inspired investor tops UK stock-picking league * Sanford DeLand UK Buffettology fund up 25.3 pct this year * Aims to emulate investment style of 'Sage of Omaha' Buffett * Favoured stocks include Dominos, Bioventix, Hargreaves Lansdown By Alasdair Pal LONDON, Dec 23 (Reuters) - Forget the financial fortress of London, anyone looking for Britain's best stock-picker this year should have hopped on a train north to Manchester.

Based out of a nondescript office block in a city more famous for football and factories than finance, Keith Ashworth-Lord's 28-million-pound ($42 million) fund is tiny compared with many peers in Britain's 6.6-trillion-pound investment industry. As suggested by the name of his fund - Sanford DeLand UK Buffettology - Ashworth-Lord seeks to emulate the investment style of Warren Buffett, the world-famous U.S. investor known as the Sage of Omaha. His returns of 25.3 percent to Dec. 22 far outstrip a 6 percent fall in the blue-chip FTSE 100, according to industry data firm Financial Express. That is about two percentage points ahead of the next best-performing fund, according to the data that covers the 262 funds in the industry's "UK All Companies" sector, comprising those that invest at least 80 percent of their assets in British shares. Ashworth-Lord's returns also top the performance of Buffett's own Berkshire Hathaway investment vehicle, which is down 11.7 percent in the same period.

The trademarked "Buffettology" method - laid down in a series of books - is not backed by Buffett himself. It was formulated by his former daughter-in-law, Mary, and David Clarke, a member of the Buffettologists - a group of early Berkshire Hathaway shareholders who studied his strategy. Ashworth-Lord's fascination with the famed U.S. investor stretches back to the mid 1990s, when he made several trips to the Berkshire Hathaway annual conference in Omaha, Nebraska - on one occasion being granted a private audience with the man himself after being mistaken for a journalist. "I was fishing around for an investment view, and landed on the teachings of Buffett and (Berkshire Hathaway colleague) Charlie Munger, and their disciples the Buffettologists," said Ashworth-Lord, who is in his 50s. "Me and my business partner at the time went off on the Buffettology train tracks like a pair of zealots." He launched his fund in 2011, after receiving a call from Clarke, who was looking for a fund to license the Buffettology trademark to.

"I didn't need persuading - it's a very competitive market and it gives the fund its point of difference," said Ashworth-Lord, an astrophysics graduate who has spent most of the last 30 years working in the corporate investment industry. 'ECONOMIC MOATS' Buffett's decision to run Berkshire Hathaway from the U.S. Midwestern city of Omaha is reflected in Ashworth-Lord's decision to avoid London as a base for his fund. "I have always preferred to work away from the rumour mill. It gives me the freedom to think," said the fund manager, who has lived in Manchester for most his life. While Ashworth-Lord is far from the first person to try and emulate Buffett - fellow UK managers Nick Train of Lindsell Train and Fundsmith's Terry Smith are both fans - he is the only one in Europe to use the Buffettology name to help market a fund. The Buffettology method, based on the teachings and investment advice of the U.S. investor, broadly involves buying into companies with strong market positions, growth potential, management teams and cash generation.

Eschewing the large team of analysts favoured by bigger funds, Ashworth-Lord is a one-man team running a portfolio of around 25 stocks. All, he says, have "economic moats" - a term used by Buffett to refer to firms with unassailable advantages, through intellectual property, branding or employees' unique skills. Current holdings include pharmaceutical company Bioventix , takeaway pizza firm Domino's and wargaming miniatures maker Games Workshop. Another favoured stock is investment firm Hargreaves Lansdown - somewhat ironic given Sanford DeLand does not make the firm's influential 'buy' list of preferred fund investments. Given it is several hundred times smaller than the biggest UK equity fund - the 4.2 billion pounds AXA Framlington Select Opps fund - Sanford DeLand's fees are higher than many peers, at 1.38 percent of assets a year, compared with 0.55 percent for rival Train's UK Equity fund. But staying small allows it to invest in companies with smaller market values, according to Ashworth-Lord who believes such stocks have the best potential for long-term growth.

Given that, his aspirations next year for Sanford DeLand, which he named after two towns he drove past while on holiday in Florida, are rather modest. "It would be nice to hire one or two people, but I don't think it will ever end up being a mega-fund." ($1 = 0.6726 pounds) (Editing by Simon Jessop and Pravin Char) Reblog Warren Buffett lunch costs $3,456,789 for anonymous bidder | Business | The Guardian Warren Buffett Warren Buffett lunch costs $3,456,789 for anonymous bidder Fifteenth annual auction of meal with Sage of Omaha will benefit Glide, a San Francisco homeless charity, and equals record set in 2012 Since 2000, Warren Buffett has raised more than $20m for Glide, a San Francisco homeless charity.

Photograph: John Peterson/AP Saturday 11 June 2016 12.15 EDT Last modified on Friday 11 November 2016 06.50 EST Close This article is 7 months old For any investor looking to reach the top of the global rich list, blowing their fortune on a single lunch may seem an unlikely way of securing a leg up on their rivals. But that’s just what one anonymous bidder has done, paying almost $3.5m to break bread with Warren Buffett and the opportunity to glean some advice from one of the world’s most successful businessmen. However, the $3,456,789 (£2.42m) is not going to line the pockets of the Berkshire Hathaway chief, who is the world’s third-richest person with a $66bn fortune, according to Forbes. Rather, it will help a San Francisco homeless charity called Glide .

Forbes' 10 richest people in 2016 – in pictures Read more Rev Cecil Williams, one of Glide’s co-founders, said: “We are astonished by the results of this year’s auction and send heartfelt gratitude to Mr Buffett for his deep investment in unconditional love and community.” It is the 15th year that the charity has auctioned a lunch with the Sage of Omaha, who has helped it to raise more than $20m. This year’s winning bid equals the record set in 2012 and was more than $1m higher than the $2,345,678 paid last year by the boss of China’s Dalian Zeus Entertainment. Zhu Ye, chief executive of the gaming company, called the chance to dine with Buffett a dream come true. The week-long auction was conducted on eBay and this year’s prize also became the joint most expensive individual charity item sold on the site. Six of the past eight winners have paid more than $2m for lunch with Buffett. His late wife Susie was involved with Glide and Buffett has maintained the relationship following her death in 2004.

Glide serves more than 850,000 meals a year, provides housing and health services as well as helping people to break out of poverty. Buffett said he was proud to be involved with an organisation that had helped so many people in need: “Glide is a bridge for thousands of people on the brink of despair, helping them achieve dignity and opportunity by providing them with basic services.” Homelessness has become a major issue in the northern Californian city in recent years. In February, technology entrepreneur and startup founder Justin Keller sparked controversy after writing an open letter to the mayor and police chief of San Francisco. He complained that “wealthy working people have earned their right to live in the city” without passing by homeless people on a regular basis. “I shouldn’t have to see the pain, struggle, and despair of homeless people to and from my way to work,” Keller wrote. Buffett has said he is asked a wide range of questions at the lunches, which usually run for several hours. The only topic not on the menu is his future investment targets. It is usually held at the Smith & Wollensky steakhouse in New York City, or another venue if the winner wants to remain anonymous.

The winning bidder is also allowed to bring seven friends to the lunch. Buffett is known for his fondness for investing in mature businesses with steady cashflows, such as insurers, railway operators and consumer goods firms including Coca-Cola. He raised eyebrows last month after Berkshire revealed it had made a $1bn investment in Apple . The only other technology company that Buffett had invested in previously was IBM. Last year Buffett donated shares in Berkshire Hathaway worth about $2.8bn to the Bill and Melinda Gates Foundation and four other charities as part of his plan to give away almost all of his wealth. Warren Buffett - Business Leader, Philanthropist - Biography.com quotes “You can't make a baby in a month if you get nine women pregnant.” “My kids are going to carve out their own place in this world, and they know I'm for them whatever they want to do.” “It's a lot easier to buy things sometimes than it is to sell them.” “Rule number one: Never lose money. Rule number two: Never forget rule number one.” “I made my first investment at age 11.

I was wasting my life up until then.” “It is impossible to unsign a contract, so do all your thinking before you sign.” “It's easier to stay out of trouble than it is to get out of trouble.” “You should invest like a Catholic marries—for life.” “Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.” “If calculus or algebra were required to be a great investor, I'd have to go back to delivering newspapers.” “Price is what you pay. Value is what you get.” “The dumbest reason in the world to buy a stock is because it's going up.” “Never ask a barber if you need a haircut.” “Risk comes from not knowing what you're doing.” “You couldn't advance in a finance department in this country unless you taught that the world was flat.” “After all, you only find out who is swimming naked when the tide goes out.” “You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.” “Someone's sitting in the shade today because someone planted a tree a long time ago.” “I feel great...

and my energy level is 100 percent.” Warren Buffett Warren Buffett - A Good Sense of Humor (TV-PG; 1:19) In the midst of his extensive annual report, Buffet finds every opportunity for humor-a trend praised by those who need to read it! Synopsis Born in Nebraska in 1930, Warren Buffett demonstrated keen business abilities at a young age. He formed Buffett Partnership Ltd. in 1956, and by 1965 he had assumed control of Berkshire Hathaway. Overseeing the growth of a conglomerate with holdings in the media, insurance, energy and food and beverage industries, Buffett became one of the world's richest men and a celebrated philanthropist. Early Life Businessman and investor. Born Warren Edward Buffett on August 30, 1930, in Omaha, Nebraska. Buffett's father, Howard, worked as stockbroker and served as a U.S. congressman. His mother, Leila Stahl Buffett, was a homemaker. Buffett was the second of three children and the only boy. Buffett demonstrated a knack for financial and business matters early in his childhood.

Friends and acquaintances have said the young boy was a mathematical prodigy who could add large columns of numbers in his head, a talent he occasionally demonstrated in his later years. Warren often visited his father's stockbrokerage shop as a child, and chalked in the stock prices on the blackboard in the office. At 11 years old he made his first investment, buying three shares of Cities Service Preferred at $38 per share. The stock quickly dropped to only $27, but Buffett held on tenaciously until they reached $40. He sold his shares at a small profit, but regretted the decision when Cities Service shot up to nearly $200 a share. He later cited this experience as an early lesson in patience in investing. First Entrepreneurial Venture By the age of 13, Buffett was running his own businesses as a paperboy and selling his own horseracing tip sheet. That same year, he filed his first tax return, claiming his bike as a $35 tax deduction. In 1942, Buffett's father was elected to the U.S. House of Representatives, and his family moved to Fredricksburg, Virginia, to be closer to the congressman's new post.

Buffett attended Woodrow Wilson High School in Washington, D.C., where he continued plotting new ways to make money. During his high school tenure, he and a friend purchased a used pinball machine for $25. They installed it in a barbershop, and within a few months the profits enabled them to buy other machines. Buffett owned machines in three different locations before he sold the business for $1,200. Higher Education and Early Career Buffett enrolled at the University of Pennsylvania at the age of 16 to study business. He stayed two years, moved to the University of Nebraska to finish up his degree, and emerged from college at age 20 with nearly $10,000 from his childhood businesses. Influenced by Benjamin Graham's 1949 book, The Intelligent Investor, Buffett enrolled at Columbia Business School to study under the acclaimed economist and investor. After earning his master's degree in 1951, he sold securities for Buffett-Falk & Company for three years, then worked for his mentor for two years as an analyst at Graham-Newman Corp. In 1956, Buffet formed the firm Buffett Partnership Ltd. in his hometown of Omaha.

Utilizing the techniques learned from Graham, he was successful in identifying undervauled companies and became a millionaire. One such enterprise Buffett valued was a textile company named Berkshire Hathaway. He began accumulating stock in the early 1960s, and by 1965 he had assumed control of the company. Business Empire Despite the success of Buffett Partnership, its founder dissolved the firm in 1969 to focus on the development of Berkshire Hathaway. He phased out its textile manufacturing division, instead expanding the company by buying assets in media (The Washington Post), insurance (GEICO) and oil (Exxon). Immensely successful, the "Oracle of Omaha" even managed to spin seemingly poor investments into gold, most notably with his purchase of scandal-plagued Salomon Brothers in 1987. Following Berkshire Hathaway's significant investment in Coca-Cola, Buffett became director of the company from 1989 until 2006. He has also served as director of Citigroup Global Markets Holdings, Graham Holdings Company and The Gillette Company.

Recent Activity and Philanthropy In June 2006, Buffett made an announcement that he would be giving his entire fortune away to charity, committing 85 percent of it to the Bill and Melinda Gates Foundation. This donation became the largest act of charitable giving in United States history. In 2010, Buffett and Gates announced they had formed The Giving Pledge campaign to recruit more wealthy individuals for philanthropic causes. In 2012, Buffett disclosed that he had been diagnosed with prostate cancer. He began undergoing radiation treatment in July, and successfully completed his treatment in November. The health scare did little to slow the octogenarian, who annually ranks near the top of the Forbes world billionaires list. In February 2013, Buffett purchased H. J. Heinz with private equity group 3G Capital for $28 billion. Later additions to the Berkshire Hathaway stable included battery maker Duracell and Kraft Foods Group, which merged with Heinz in 2015 to form the third-largest food and beverage company in North America. Warren Buffett at a Town Hall rally for Democratic presidential candidate Hillary Clinton at Sokol Auditorium on December 16, 2015 in Omaha, Nebraska.

(Photo: Steve Pope/Getty Images ) In 2016, Buffett launched Drive2Vote , a web site aimed at encouraging people in his Nebraska community to exercise their right to vote - and to assist in registering and driving voters to a polling location if they needed a ride. He’s been a vocal supporter of Democratic nominee Hillary Clinton , whom he’d endorsed in 2015. He also challenged the Republican nominee, Donald Trump , to meet and share their tax returns. "I will meet him in Omaha or Mar-a-Lago or, he can pick the place, anytime between now and election. I'll bring my return, he'll bring his return. We're both under audit. And believe me, nobody's going to stop us from talking about what's on those returns,” said Buffett at an August 1st rally in Omaha. Unlike other presidential candidates since the 1970s, to date, Trump has refused to make his tax returns public. Videos Oracle Of Omaha Definition | Investopedia Oracle Of Omaha DEFINITION of 'Oracle Of Omaha' A nickname for Warren Buffett , who is arguably one of the greatest investors of all time.

He is called the "Oracle of Omaha" because his investment picks and comments on the market are very closely followed by the investment community, and he lives and works in Omaha, Nebraska. BREAKING DOWN 'Oracle Of Omaha' Warren Buffett is one of the richest men in the world. He built his fortune using a simple yet powerful investment strategy . His investments are long-term positions, accomplished by the purchase of strong companies that are trading well below their intrinsic value . Some of his most well-known investments include Coca-Cola and Gillette. Trading Center Sage of Manchester? Buffett-inspired investor tops UK stock-picking league | Reuters Wed Dec 23, 2015 | 9:37 AM EST Sage of Manchester? Buffett-inspired investor tops UK stock-picking league * Sanford DeLand UK Buffettology fund up 25.3 pct this year * Aims to emulate investment style of 'Sage of Omaha' Buffett * Favoured stocks include Dominos, Bioventix, Hargreaves Lansdown By Alasdair Pal LONDON, Dec 23 Forget the financial fortress of London, anyone looking for Britain's best stock-picker this year should have hopped on a train north to Manchester.

Based out of a nondescript office block in a city more famous for football and factories than finance, Keith Ashworth-Lord's 28-million-pound ($42 million) fund is tiny compared with many peers in Britain's 6.6-trillion-pound investment industry. As suggested by the name of his fund - Sanford DeLand UK Buffettology - Ashworth-Lord seeks to emulate the investment style of Warren Buffett, the world-famous U.S. investor known as the Sage of Omaha. His returns of 25.3 percent to Dec. 22 far outstrip a 6 percent fall in the blue-chip FTSE 100, according to industry data firm Financial Express. That is about two percentage points ahead of the next best-performing fund, according to the data that covers the 262 funds in the industry's "UK All Companies" sector, comprising those that invest at least 80 percent of their assets in British shares. Ashworth-Lord's returns also top the performance of Buffett's own Berkshire Hathaway investment vehicle, which is down 11.7 percent in the same period.

The trademarked "Buffettology" method - laid down in a series of books - is not backed by Buffett himself. It was formulated by his former daughter-in-law, Mary, and David Clarke, a member of the Buffettologists - a group of early Berkshire Hathaway shareholders who studied his strategy. Ashworth-Lord's fascination with the famed U.S. investor stretches back to the mid 1990s, when he made several trips to the Berkshire Hathaway annual conference in Omaha, Nebraska - on one occasion being granted a private audience with the man himself after being mistaken for a journalist. "I was fishing around for an investment view, and landed on the teachings of Buffett and (Berkshire Hathaway colleague) Charlie Munger, and their disciples the Buffettologists," said Ashworth-Lord, who is in his 50s. "Me and my business partner at the time went off on the Buffettology train tracks like a pair of zealots." He launched his fund in 2011, after receiving a call from Clarke, who was looking for a fund to license the Buffettology trademark to.

"I didn't need persuading - it's a very competitive market and it gives the fund its point of difference," said Ashworth-Lord, an astrophysics graduate who has spent most of the last 30 years working in the corporate investment industry. 'ECONOMIC MOATS' Buffett's decision to run Berkshire Hathaway from the U.S. Midwestern city of Omaha is reflected in Ashworth-Lord's decision to avoid London as a base for his fund. "I have always preferred to work away from the rumour mill. It gives me the freedom to think," said the fund manager, who has lived in Manchester for most his life. While Ashworth-Lord is far from the first person to try and emulate Buffett - fellow UK managers Nick Train of Lindsell Train and Fundsmith's Terry Smith are both fans - he is the only one in Europe to use the Buffettology name to help market a fund. The Buffettology method, based on the teachings and investment advice of the U.S. investor, broadly involves buying into companies with strong market positions, growth potential, management teams and cash generation.

Eschewing the large team of analysts favoured by bigger funds, Ashworth-Lord is a one-man team running a portfolio of around 25 stocks. All, he says, have "economic moats" - a term used by Buffett to refer to firms with unassailable advantages, through intellectual property, branding or employees' unique skills. Current holdings include pharmaceutical company Bioventix , takeaway pizza firm Domino's and wargaming miniatures maker Games Workshop. Another favoured stock is investment firm Hargreaves Lansdown - somewhat ironic given Sanford DeLand does not make the firm's influential 'buy' list of preferred fund investments. Given it is several hundred times smaller than the biggest UK equity fund - the 4.2 billion pounds AXA Framlington Select Opps fund - Sanford DeLand's fees are higher than many peers, at 1.38 percent of assets a year, compared with 0.55 percent for rival Train's UK Equity fund. But staying small allows it to invest in companies with smaller market values, according to Ashworth-Lord who believes such stocks have the best potential for long-term growth.

Given that, his aspirations next year for Sanford DeLand, which he named after two towns he drove past while on holiday in Florida, are rather modest. "It would be nice to hire one or two people, but I don't think it will ever end up being a mega-fund." ($1 = 0.6726 pounds) (Editing by Simon Jessop and Pravin Char) ADVERTISEMENT

Question: What notable businessman is known as the Sage of Omaha?
Answer: Warren Buffett