That's really it, Buffet doesn't make bets, he takes sure things when no one else wants them. This is why he always under performs the market in booms and outperforms during busts. He finds the companies he likes and waits for the price to be right.
There is also a lot of synergy in his investments, if you look at Geico part of the reason they are able to offer such low rates is that they park most of their excess funds with Berkshire or other similarly outperforming investments.
Or look at BNSF and their trackage to the Powder River Basin. He doesn't want to be in a company like Facebook because he doesn't know that they will be around in 20 years, nor are their competitive advantages (network effect) durable within the industry. Look at a company like Coca-Cola, their advantages are durable and customer base loyal. Coca Cola doesn't need frequent drinker miles to get their customers to remain loyal.
One of the highly overlooked benefits of long term investing is the tax implications and associated transaction fees. If you buy and sell stock frequently you pay capital gains so any other investment needs to be better than the one you currently have by at least the capital gains you'll pay on the sale plus the brokerage fees.
There is also a lot of synergy in his investments, if you look at Geico part of the reason they are able to offer such low rates is that they park most of their excess funds with Berkshire or other similarly outperforming investments.
Or look at BNSF and their trackage to the Powder River Basin. He doesn't want to be in a company like Facebook because he doesn't know that they will be around in 20 years, nor are their competitive advantages (network effect) durable within the industry. Look at a company like Coca-Cola, their advantages are durable and customer base loyal. Coca Cola doesn't need frequent drinker miles to get their customers to remain loyal.
One of the highly overlooked benefits of long term investing is the tax implications and associated transaction fees. If you buy and sell stock frequently you pay capital gains so any other investment needs to be better than the one you currently have by at least the capital gains you'll pay on the sale plus the brokerage fees.