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Among the richest in the world, the only one not to lose money in 2022 is Buffett

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The richest people in the world have seen their wealth take a beating in the first weeks of 2022, except for one: let’s talk about Warren Buffett, the billionaire investor at the head of the holding Berkshire Hathaway.

A recent crash in tech stocks brought down the fortune of the richest person in the world, Tesla’s CEO Elon Musk, of $ 54 billion so far this year. The founder of Amazon is also in the same vein Jeff Bezos which lost $ 27.8 billion, so the founders of Google Larry Page And Sergey Brin who have both lost more than $ 12 billion and the head of Facebook Mark Zuckerberg complains of 15.2 billion dollars less.

But of the 10 richest people in the world, only one has seen his net worth increase: Buffett, who earned about $ 2.4 billion, bringing his total to $ 111 billion. This week, Berkshire Hathaway’s chairman and chief executive overtook Zuckerberg to jump back to sixth place on the global wealth chart, according to the Bloomberg Billionaires Index. It’s a four-year overtaking: Zuckerberg recently overtook Buffett on the wealth chart in 2018.

Buffett is a value investor: what it means

“Decade after decade, the Oracle of Omaha continues to have the golden touch,” he says Dan Ives, Wedbush Securities analyst, at CNBC Make It. “This is why Buffett will be in the history books for centuries and this is also because of his firm belief in value investing.”

Value investors choose stocks that appear undervalued, and that are traded for less than they should be. And unlike other CEOs, whose net worth is largely tied to their tech firms, Buffett’s Berkshire Hathaway has a broadly diversified which allowed him to resist the technological sell-off. Buffett has long recommended that investors put their money in index funds, which hold every stock in an index, making it automatically diversified. The S&P 500, for example, includes large companies like Apple, Coca-Cola and Google.

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In 2017, Buffett told CNBC that for people looking to build their retirement savings, i diversified index funds they make a difference.

“He is constantly buying a low-cost S&P 500 index fund,” Buffett said. “Keep buying it in good times and bad, and especially in bad luck”.

Investments

Among the shares that the Oracle of Ohama bought in 2021 are Bank of America which last year overtook Wells Fargo, Citigroup and JP Morgan Chase, Royalty Pharma PRC, a pharmaceutical company that finances advanced studies in exchange for future royalties. and Verizon.

When it comes to investing (and earning), Berkshire Hathaway’s CEO has his own methodology that follows firm and above all simple guidelines. In particular, the two ways in which theOracle of Omaha decides that it is worth investing in a company are first and foremost to verify that thecompany has long-term value.

“Nobody buys a ‘farm based on the fact that he thinks it will rain next year. He buys it because it’s a good investment in 10 or 20 years (…) If you’re not willing to own a share for 10 years, don’t even think about owning it for 10 minutes “.

Second, Buffett doesn’t put money into something he doesn’t understand. It is crucial for investors to be able to confidently rate the companies they hold.

Invest smart it is not complex, although this is far from saying that it is easy (…) What an investor needs is the ability to correctly evaluate the selected firms. You must learn to value businesses and know those that fall within your circle of expertise and those that are outside.

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