I presume that, when Warren Buffett discusses the rationale for a particular investment, he holds back a little bit of the rationale for making the investment so that his theses aren’t immediately adopted by others and thus driving the price of the stock up. I say this without negative judgment, as competitive insights are hard-won and Buffett owes no duty to third parties to diminish the effectiveness of his own insights.
Specifically, I was thinking about Warren Buffett’s investment in American Express, an important part of his lifetime accumulation of wealth. As you may know, he made a lot of money in 1963-1964 by purchasing American Express stock through his seven Buffett Limited Partnership, and the quick tripling of the stock price gave Buffett an Omaha fortune and regional credibility as an investor.
Buffett continued to buy this stock en masse during the late 1980s and early 1990s on behalf … Read the rest of this article!