This post is a look at Bill’s rule for smart investing 2
After closing the Buffett Partnership in 1969, Warren recommended his partners to invest with Bill Ruane.
For the 14 years following Buffett’s recommendation, Bill Ruane compounded annual returns were 18.2% in comparison to $S&P 500 Index (.SPX.US)$ that returned 10% annually over the same period.
Here's the rule 2: Buy businesses with pricing flexibility
Another indication of a proprietary business position is pricing flexibility with little competition. In addition, pricing flexibility can provide an important hedge against capital erosion during inflationary periods.
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whqqq : I heard for the first time that it exceeded the S&P 500... Investment suggestions worth learning