Behind Buffett’s Approach

In a recent interview with Canada’s Globe and Mail, Validea CEO John Reese discussed some of the key points of Warren Buffett’s investing approach. Reese talks about Buffett’s desire to invest in comapnies with very lengthy histories of increasing annual earnings per share, as well as his long-term mindset. “He has a very long-term approach and point of view,” Reese says of Buffett. “It is difficult to do, to have a long-term orientation. Buffett points out there’s almost a casino mentality [among most investors]. You’re sort of rolling the dice. You’d like to see your stock increase 10% or 20% in six months or a year. To be patient, to invest in it as if you’re buying the business for the long-term, is very difficult for most investors to do.”

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