Money
Warren Buffett Admits Only 12 Ideas Created Berkshire's Value Over 58 Years
We Study Billionaires
TIP812: Mohnish Pabrai: Berkshire & Letting Winners Run w/ Mohnish Pabrai
"Warren himself has said, I think it was a '22 or '23 letter where he said that 12 ideas over 58 years or something have led to the creation of Berkshire. Warren has made more than, I would guess, somewhere between 300 to 400 investments or buying companies in those almost 6 decades. It's a 3 or 4% hit rate."
Buffett acknowledged that just 12 investment ideas over nearly six decades were responsible for Berkshire's success, representing only a 3-4% hit rate among 300-400 total investments. This mirrors broader market data showing approximately 4% of US businesses delivered all market returns over 90 years. The revelation underscores the importance of holding winners rather than frequent trading.
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We Study Billionaires