SECRET: Warren Buffett’s 118 Billion Dollar Strategy

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SECRET: Warren Buffett’s 118 Billion Dollar Strategy
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Summary

➡ Warren Buffett’s success in the investment world is due to his ‘Deal Box’ strategy which involves concentrating investments in sectors he understands deeply; contrary to diversification, he advocates for focused knowledge. He holds a portfolio worth over $118,000,000,000 and consistently achieves impressive returns.

Transcript

Warren Buffett’s $118,000,000,000 secret. Now, did you know that Warren Buffett, the world’s most successful investor, employs a genius strategy called the Deal Box? Now, this singular strategy led him to construct an outstanding $118,000,000,000 portfolio. I am a genius. With a net worth of over $118,000,000,000 to his name, warren Buffett is consistently ranked among the wealthiest people in the world. And out of all of the investors in the 20th century, buffett was the most successful.

His strategies work, and his long term performance is of legend. So in this video, I’m going to break down how you can use his same strategy to fuel your investment strategy. And while I can’t guarantee that you’ll end up as wealthy as good old Uncle Warren, I can say that you’ll come out way ahead than if you just go about this on your own. So let’s go. Hey, taking a break real quick to let you know that I am working hard on this live presentation for next week.

It’s going to be massive. I got probably 100 slides. I’m putting together charts, graphs, et cetera to show you the $7. 5 trillion shockwave that’s going to happen because of this BRICS meeting that just happened. Now, look. Now, they’re not coming out with a currency. They’re not going to displace the dollar. But what they will do is cause massive disruptions in the currency markets, which will cause massive disruptions in the commodity markets.

And if you don’t get positioned properly, you’re going to miss out on this whole thing. So I got, like 100 slides I’m put together. I want to join you to come. It’s free. Let me show you what I have put together. Let me show you the ways that we can play this, what I’m doing, what you can be doing. And it’s all going to have live Q and A.

I’ll stay till I answer everybody’s questions. You don’t want to miss it. It’s all for free. There’s a link down below. Don’t miss out. All right, welcome to the channel. If you’re new, my name is Mark Moss. I make these videos to change the way you think about money. Warren Buffett certainly thinks about money differently. And, of course, you weren’t taught that. So don’t worry, I got your back.

I’m going to break it down for you right here. If you listen, if you learn and you apply these strategies, you are going to win. You’re going to come out ahead. All right? Now, for me personally, I’ve built my career on one principle, and that is success leaves clues. And it’s helped me start eight businesses that have done seven to eight figures in just the first twelve months.

Which is why I’m always studying the greatest investors and the great businesses for the clues that they leave behind. No doubt, Warren Buffett is one of the goats, the greatest of all times. And so, of course, I’ve been reading his shareholder letters. I’ve been reading for years. I’ve been reading for decades, looking for the clues. And I’ve got a good one for you that I want to share right now.

But for those of you who think that Buffett’s old, he’s out of touch. He won’t buy gold, he won’t buy crypto, or that his old strategies just don’t work anymore. Let me lay out some data and some facts for you first. For the last five decades, from 1965 through the end of 2021, his company, Berkshire Hathaway, saw shares generate a compound annual return of 20. 1%, which is double their performance of the S and P.

Now, for comparison, another goat, another greatest of all time. Ray Dalio, the founder of the largest hedge fund in the world, Bridgewater Capital, saw profits of just 7. 2% compounded annually during the same time, which is less than half of Buffett’s returns. All right, so now that I’ve given you some facts, he’s not old. He’s not archaic. Well, he is old, but his strategies still work. So let’s dig into a massive clue that Warren Buffett talks about many times in his letters, in his meetings, talked about it over the years, and it’s called deal box strategy.

At the Berkshire Hathaway’s annual shareholders meeting in April of 2022, the Oracle of Omaha, as they call him, answered questions. And he reiterated to the audience of tens of thousands of investors that over the last five decades, he stuck to his core investing strategy in what he calls his circle of competence. You’ve heard the old investing adage before, don’t put all your eggs in one basket, right? Because, of course, if you drop the basket, if something happens to the basket, you’re going to lose all the eggs.

So the adage tells us that placing each egg in a different basket is more diversified. Now, there’s more risk of losing one egg, but less risk of losing all of them, which sounds good, right? But Warren doesn’t agree. In fact, he says the opposite. He says that we should put all your eggs in one basket and watch the heck out of that one basket. Warren Buffett believes that diversification makes little sense if a person doesn’t know exactly what they’re doing.

Diversification is a protection against ignorance and is for people who don’t know what they’re doing and don’t know about the businesses they’re investing in. Now, I say that for many, diversification is actually dewersification. Now, don’t get me wrong, right? Don’t misunderstand this. I invest in lots of things, just like Buffett does. Buffett also invests in lots of things. He’s diversified. But for Warren Buffett, what he’s saying, what this means, is that he only invests into companies, industries, and markets that he knows like the back of his hand.

And so he ruthlessly sticks to this. It’s his circle of competence, and so do I. If I don’t understand a business or a market, I just stay away. I don’t know everything, nor do I need to. And wading into waters that I don’t understand only adds up to the level of risk that we have. And of course, you should know this, right? Just look at the wealthiest people in the world.

There are entrepreneurs who have created companies that grew exponentially in value, like Bill Gates. He made all his money in a single basket called Microsoft. Jeff Bezos made his wealth in a single basket called Amazon. Zuckerberg made it in his basket called Facebook. They all made their wealth by putting all their eggs into one basket. In an interview from 1985, warren Buffett explained it when he said that the key to good investing is about exploiting one’s area of competence, defining your level, defining your area of competence in valuing businesses, and then within that area of competence, finding whatever sells at the cheapest price in relation to value.

And there are all kinds of things I’m not competent to value, but there are a few that I am competent to value. Taking advantage of one’s expertise in a group of stocks, an investor can sometimes find upside opportunities when the market prices them below their actual worth. So what he’s saying is that you can participate in groups of stocks and different sectors as long as they’re in your core area of competence.

Now, when it’s in your core area of competence, then you’ll instantly already recognize when something’s below its actual value when you pay attention to it. Now, when I want to buy something, I typically want to go figure it out. So, for example, I wanted to buy a car for my daughter. I’m going to buy her a used car. She doesn’t get a new car yet, so she wanted a particular car.

I didn’t know anything about that car. I don’t know how much they go for. I don’t know what models there were. I don’t know what features there were. And so I spent way too much time looking at every model, every car, every feature. And I actually made a spreadsheet, and I started putting mileage down. I started putting features down. I started putting colors down. And I had this master spreadsheet with, like, 25, 30 cars in it.

It gave me an area of expertise around this car, this model in this year. And so when I would see a car that was cheaper, I instantly knew it because I had put the time in to understand it. That’s what he’s talking about here. You’ll understand opportunities when you see them if you stay in your core competency. Now, 14 years later, at Berkshire Hathaway’s 1999 shareholder meeting, warren Buffett would explain to his investors again when he said, quote, different people understand different businesses, and the important thing is to know which ones you do understand and when you’re operating within what I call your circle of competence.

So let’s break this down. What does this look like in practice for us? How do we use this strategy to multiply and preserve our wealth? Well, it starts with investing our money into companies and businesses that we know, we like and we understand. So we have at least a base level of knowledge about the market or industry that it’s in, and we have an interest to acquire more knowledge and pay attention by watching it.

So let me give you an example. Let’s say that I’m a contractor, so I work in construction. Well, then I have a base level of understanding of construction, of building supplies, of market dynamics, supply, demand, things like that. So maybe I would want to invest into things I know. So, for example, maybe I invest into home builder stocks. I invest into concrete companies, window manufacturers. Let’s say that I’m a programmer.

I’m a computer programmer. Because I’m a computer programmer, then I have a base level of understanding of software, software companies, new technology, new chips, data centers, things like that. So then I can invest all through that ecosystem. Let’s say that I’m a programmer, but I’m also really interested in I’m also involved in real estate, or the contractor might really be interested in AI. Well, that’s great if so, but if not, then just stay in your core circle of confidence.

If you’re the contractor who hears, like, oh, my gosh, look how cool this AI stuff, maybe I’ll throw some money over there. But you don’t know anything about it, nor have you taken the time to learn about it, then you should stay away. Now, it’s critical for us to invest in companies whose values and visions are similar to our own and for us to be knowledgeable and interested enough to be able to watch the performance of those businesses and their stocks.

So, just like Warren Buffett, I created my own deal box, right? I created my deal box, which are the types of deals and investments that I look at. If they don’t fit the criteria of my deal box, then I don’t invest. Simple as that. If you want to have the same results of the greats, then you have to do the same things as the greats do. So be like Warren Buffett and watch your basket.

Is that what you’re doing, though? Or are you just spraying and praying? Let me know in the comments down below. Are you in your deal box? Are you spraying and praying? You can leave me one or the other, of course, as always, give me a thumbs up if you like the video. If you don’t, give me a thumbs down. But at least tell me why. If you’d like me to make more videos like this, let me know in the comments down below.

Subscribe if you’re not already. And that’s what I got to your success. All right, so we just finished the video. Hopefully you enjoyed it. I know Warren Buffett has his own secrets, but we have our own secrets. There is a $7. 5 trillion shockwave that’s about to happen in the markets in the currency and commodity markets, and you don’t want to miss this. So come hang out with me on my free live event.

Like I said, I have about 100 slides. I’m getting ready to show you all the charts, the graphs, the data, what we can do about it. You don’t want to miss it’s all for free. There’s a link down below. There’s probably a QR code on the screen as well. Hope to see you there’s. .

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