The eating habits of “legendary investor” Warren Buffett have many similarities to his investment strategy, according to BI.
Warren Buffett, also known as the ‘legend of Omaha,’ admits that he eats like a 6-year-old, enjoying everything from Cherry Coke and fast food to peanut brittle.
According to Business Insider, the diet of Warren Buffett, one of history's most successful investors with a current fortune of 81 billion USD, shares many features with his investment strategy.
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1. Stay with What You Know Well
Buffett rarely changes his habits. He generally visits familiar restaurants in his hometown of Omaha, Nebraska, and dines at the same steakhouse when in New York. Buffett chooses his breakfast according to stock market conditions. This results from his detailed knowledge of each restaurant he visits. Buffett always tries to understand exactly what he likes and dislikes in a meal.
Just as he thoroughly understands where he eats, Buffett also researches and understands the companies he invests in or withdraws capital from. He reads extensively and usually conducts extremely thorough research before investing.
2. Indulge yourself, but do not be impulsive
Once Buffett knows what he wants, whether for a meal or an investment, he acts. Fried chicken, hamburgers, peanut brittle, and extra salt on everything make up Buffett's relatively ‘indulgent’ diet. Similarly, he often invests in ‘big batches.’
For example, he currently owns more than 100 million shares in 7 listed companies and more than 5% of 20 other companies. That does not include acquisitions such as Percision Castparts for 37.2 billion USD in 2015 or BNSF Railway for 44 billion USD in 2009.
Once Buffett decides where he wants to invest, he makes truly large deals. Much like ordering an entire seafood ‘tower,’ a steak weighing nearly 1kg, hash browns, spinach, and coconut cake in the same meal.
3. Be truly passionate
Buffett drinks a lot of soda every day, particularly his favorite, Cherry Coke (cherry-flavored cola). Alongside his family, this is one of his most enduring loves. Buffett not only knows what he wants, such as Cherry Coke, but also stays loyal to what he loves.
“Pursue your passion. I always advise university students to find the work they would do if they were financially independent. Then they will succeed,” Buffett shared in a 2012 interview.
A typical example is Buffett's investment in American Express. Buffett holds more than 17% of the company's shares and maintains that stake. However, by mid-2016, the stock had fallen from 95 USD in mid-2014 to just over 50 USD. American Express also lost one of its most important customers, Costco, and its “payment ecosystem” gradually fell apart.
However, Buffett remained committed to the investment, which dated back to 1991. He even supported American Express CEO Kenneth Chenault for 17 years until his recent retirement. Despite continuing difficulties, Kenneth Chenault's shares have nearly returned to their previous peak.
Buffett maintains his investments because he believes in them, just as he remains loyal to familiar habits and foods because he truly enjoys them.
Collected.
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