One Fund’s Long Time Frame is Paying Off

The Akre Focus Fund takes the buy-and-hold strategy seriously, according to an article in The Wall Street Journal. John Neff, one of the $9.8 billion fund’s portfolio managers, explains that investment decisions are made based on four criteria: Analysis of a company’s business model, which involves looking for a “significant competitive advantage, high return on capital and attractive growth prospects.” Strong leadership in the form of “management teams with equal parts skill and integrity, because… Read More

The Buy and Hold Optometrist Billionaire

Forbes recently profiled self-made billionaire and philanthropist Herbert Wertheim, 79-year-old who amassed his fortune from a “lifetime of prudent do-it-yourself buy-and-hold investing.” The article chronicles Wertheim’s life as an optometrist and small businessman, describing him as “the greatest individual investor the world has never heard of” and calling his strategy a “mix of Warren Buffett and Peter Lynch, with a touch of Jack Bogle, given that he dislikes fees.” Wertheim’s engineering and inventing background has… Read More

Housel on the Strength of Compounding on a Small Base

In a recent article for the Collaborative Fund, Morgan Housel addresses the topic of compounding through several interesting anecdotes about ice ages and Warren Buffett, among others. A hundred years ago, Housel explains, a Serbian scientist discovered that our earth “wobbles just enough to change how much solar radiation is let in, occasionally enough to wreak havoc.” But Housel points out that subsequent studies found a more layered explanation, that moderately cool summers were the… Read More

Become an Equity Compounder à la Buffett

By John Reese (@guruinvestor) —  It’s a simple concept but, over time, it accomplishes extraordinary things. That’s how legendary investor and stock market guru Warren Buffett has described compound interest, a concept that Albert Einstein called the “eighth wonder of the world.” The idea is simple: If you invest even modest amounts of money at modest rates of interest and leave it invested over long periods of time, it can grow exponentially–since the interest you earn each year… Read More

U.S. Government Just Gave Investors Part of their “Super Stock” for Free (Sort Of)

By Justin J. Carbonneau (@jjcarbonneau) —  Sometimes someone says something that hits you like a ton of bricks. Well, in early January Warren Buffett was on CNBC and one of the topics he was discussing was tax reform and its impact on the value of stocks (see full video here, pick it up at the 17 min mark). In classic Buffett fashion, he makes a few very salient points that are worth digging into. Buffett… Read More