Buffett's Dirty Secret
He Only Buys One Kind of BusinessAnd no one seems to talk about it
This might not be the most timely article. But I finally sat down to read Berkshire Hathaway’s latest annual letter, and I want to share a few insights I think nobody is talking about. They explain how Warren Buffett became one of the richest men alive — and they have nothing to do with valuation multiples or moats.
Why now? Because last weekend, Buffett announced that he’ll step down as CEO of Berkshire by the end of the year, handing the reins to Greg Abel. Fair enough. The man has been compounding capital longer than most of us have been alive. Time for some well-earned peace and quiet.
Everyone knows that if you held BRK long enough, you became very rich. But the real question is: why did it work?
People love to say Buffett is a value investor. They quote Graham. They talk about margin of safety and intrinsic value. That’s fine — but it misses the real engine behind his portfolio.
And it’s surprisingly simple.