Extracts from "Random walk guide to investing" :-
"Warren buffet has taken an active role in the businesses in which he has invested. One of His earliest investments was in the Washington post company. According to Katherine Graham, the papers chief executive, buffet played the critical role in saving the paper from financial disaster and turning the stock into a profitable investment. So it was in many of Birkshire heathaways most successful investments. When an error was made in the case of buffetts investment in the case of Soloman brothers, buffet himself became the firms leader to save it from liquidation". Buffet seems to have followed the Index fund principle "Rather than futilely attempting to find that needle in the haystack, buy the haystack instead."
Till date, nobody has been able to figure out how buffet calcualtes the intrinsic value of a share-no wonder.
"Warren buffet has taken an active role in the businesses in which he has invested. One of His earliest investments was in the Washington post company. According to Katherine Graham, the papers chief executive, buffet played the critical role in saving the paper from financial disaster and turning the stock into a profitable investment. So it was in many of Birkshire heathaways most successful investments. When an error was made in the case of buffetts investment in the case of Soloman brothers, buffet himself became the firms leader to save it from liquidation". Buffet seems to have followed the Index fund principle "Rather than futilely attempting to find that needle in the haystack, buy the haystack instead."
Till date, nobody has been able to figure out how buffet calcualtes the intrinsic value of a share-no wonder.