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Berkshire's unconventional investment strategies include highly concentrated investments with very long holding periods. The top five positions often account for about 60% to 80% of the company's portfolio, and these positions have been held for over 20 years on average. This low level of activity, referred to by Buffett as "inactivity bordering on sloth", allows for a focus on long-term growth rather than short-term gains. Additionally, Berkshire offers companies freedom from Wall Street scrutiny and near unlimited access to capital. Buffett also spends little time on traditional due diligence, such as meeting management and inspecting operating facilities. These strategies contribute to Berkshire's success by allowing for steady, long-term growth and minimizing the impact of short-term market fluctuations.
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Berkshire's investments were highly concentrated and had very long holding periods. The top five positions accounted for about 60% to 80% of the company's portfolio. Buffett's top stock positions have been held for over 20 years on average. Buffett calls this low level of activity as "inactivity bordering on sloth." A sale to Berkshire gives companies freedom from Wall Street scrutiny and near unlimited access to capital. Buffett spends little time on traditional due diligence, including meeting management and inspecting operating facilities. The Capital Cities deal was finalized in less than 15 minutes.
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A book that received high praise from Warren Buffett, The Outsiders chronicles the unconventional techniques that led eight CEOs to outperform the S&P...
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