This Made Buffet, Munger, & Lynch Rich 💰
And it will make you rich too. 🔥
What made Warren Buffett, Charlie Munger, and Peter Lynch so rich?
Pareto's law.
The idea that you can get 80% of the results from 20% of the effort.
"All you need for a lifetime of successful investing is a few big winners"
- Peter Lynch
Here is an example for each: 👇
1. Warren Buffett
Buffett began buying American Express stock in the fall of 1960s, and added more capital in the 90s.
He eventually built a $1.3 billion position.
He has held this position for 31 years.
The market value now?
Around $34.5 Billion.
A 26.5X return.
2. Charlie Munger
Munger held BYD Company Limited for over 15 years.
The cost was $232 million.
The market value at its peak?
Over $7 billion.
Over a 30x return.
3. Peter Lynch
Peter Lynch started buying shares of YUM Brands when the stock price dropped from $14 to $7, and then to $1 per share in the 80s.
Pepsi acquired YUM a few years later for $42 per share.
This was likely a return of anywhere between 10X to 30X.
One or two great investments held for a long period of time can change everything.
"You only have to do a few things right in your life so long as you don't do too many things wrong." - Warren Buffett
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Good stuff!