Being boring

Today Warren Buffett’s Berkshire Hathaway released its full year report for 2022. His letters to shareholders are classics among a group of investing nerds, but I found this year’s a bit underwhelming.

What is not underwhelming is Berkshire Hathaway’s annual returns of 19.8%. Especially on the very large sums of money he invests (easier to make 20% when investing $1 million than when investing $100 billion).

While Warren Buffett have done a lot of active investing that is not generally available to individual investors, a large chunk of the value of Berkshire Hathaway has come from buying common shares in public companies like Coca Cola, Apple and American Express. The same can be said about Swedish investors like the Wallenberg family (Investor) and Fredrik Lundberg (Lundbergföretagen).

Copying their approach and buy shares in good and great companies, re-invest dividends and have the value of shares grow become very profitable over decades. Boring but effective.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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