Finding and Using Innovations for the Events Industry, with Long-Term Benefits (Part 1)
By Eric Hatch
Hatch Marketing & Consulting, LLC
“I’m no genius, but I’m smart in spots, and I stay around those spots.””
- Warren Buffett (quoting Thomas Watson Sr.)
Warren Buffet isn’t like you and me… unless Bill Gates is reading this. He’s the world’s third-richest man, with net assets worth $50 Billion, most of which came only from good investments.
He’s also unlike most investors. He won’t “buy low, and sell high”, nor will he “day trade”. You want quick profits? Look elsewhere. He and his holding company Berkshire Hathaway provide long term, very secure investments. And his safe approach produces phenomenal returns, over the decades, especially in comparison to recent failures of now-bankrupt Wall Street firms.
1. Buffett Stays Rich Through Consistent Forethought.
In its modest office in Omaha, Nebraska, Berkshire Hathaway consistently predicts many companies’ future growth and stability. When Mr. Buffett finds businesses up to his standards, he buys and holds onto that stock, not for months or even years; he keeps a stock and doesn’t let go. This method keeps the Berkshire stock portfolio largely unchanged. 53% of its $60 Billion market value comes from businesses which Berkshire has neither bought or sold any of their stock last year.
Coca-Cola, the single largest holding at Berkshire Hathaway at 22% of their portfolio, exemplifies this approach. It attracted Mr. Buffett, not because it’s flashy, but because it is stable and growing. He also bought it because, unlike tech stocks, he understood the business. He comprehends the competitive advantage of each company in his portfolio. Berkshire started buying it back in the 1980’s. Now it owns 8.7% of Coca-Cola — 200 million shares — valued at $13.9 Billion. It makes up over 22% of Berkshire’s portfolio, it’s a sound, long-term investment, and it will be for the foreseeable future. So, Mr. Buffett keeps it in his portfolio.
Breaking News! Buffett Buys Tech… with Forethought!
If Warren Buffett’s investment style seems immovable, look at how Berkshire shifted its investments in 2011. It was back in October that I began to really take notice of Berkshire Hathaway, when they bought 5% of IBM, over $10 Billion worth! It made headlines because it was the first tech stock Berkshire ever held.
So, why did Buffett invest in this stalwart of technology? His explanation will help anyone, especially associations and others in the Events Industry, to invest effectively in technology.