Warren Buffett’s Timeless Investment Advice 1of 2

Investing, at its core, is about finding value and waiting for the rest of the market to recognize that value. At least, that’s the short, simplified version of investing as understood by Warren Buffett. With his track record, it’s clear that he’s on to something.

But value can change over time, and Buffett’s track record and shifting investment portfolio reflects that trend as well. Read more about Warren Buffet's timeless advice.

Back in the 1970’s, Buffett was a huge buyer of newspaper companies. His logic was that each paper was a local monopoly on advertising for a region, as most communities were down to one large paper per day. That logic changed with the Internet, and Buffett has largely divested most of those legacy print holdings.

Today, Buffett’s largest stock holding is Apple, generally considered a technology play, and therefore one that seems odd for Buffett to own.

But the concept of value has shifted. In the 21st century, value isn’t necessarily the value of a factory or land on a company’s books. It may not even be cash per share. Rather, value is, and always will be, about a company’s future prospects relative to its current price.

In that vein, technology companies make a lot of sense as potential value plays, as they don’t have some of the higher costs relative to older types of businesses. Apple in particular has a strong consumer culture.

While not every customer will upgrade every product every time a new model comes out, it has demonstrated that it has a passionate customer base that tends to stick with the company at a level beyond mere branding. This may be an emerging way of looking at value—provided there’s also a check to a company’s financial metrics and operations first!

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