The Stark Reality Buffett Followers Must Face
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has quite the following on Wall Street, and it's not hard to understand why. Buffett's long-term investing approach and his ability to pick out businesses that offer plain-as-day competitive advantages has allowed Berkshire Hathaway's stock to run circles around the benchmark S&P 500 over the last 55 years.
Investors might harp about Buffett's subpar returns over the past decade relative to the S&P 500, but his company's stock has delivered a 2,744,062% return to shareholders over the past 55 years and created over $400 billion in market value in the process.
What I'm trying to say is, when Warren Buffett buys or sells a stock, Wall Street and retail investors pay close attention. Riding Buffett's coattails has proved to be a winning investment far more often than not.
Source Fool.com
