{"id":407063,"date":"2020-07-25T04:24:37","date_gmt":"2020-07-25T08:24:37","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=407063"},"modified":"2020-06-20T12:44:08","modified_gmt":"2020-06-20T16:44:08","slug":"who-is-the-next-warren-buffett","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/who-is-the-next-warren-buffett","title":{"rendered":"Who is the Next Warren Buffett?"},"content":{"rendered":"<p><span style=\"background-color: transparent;\"><em>Who is the Next Warren Buffett? <\/em>Warren Buffett, often referred to as the Oracle of Omaha, is nothing short of a legend in the world of investing. He has an extraordinary ability to see through marketplace clutter and pluck out businesses that deliver strong rewards to shareholders. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">Through his holding company, <strong>Berkshire Hathaway [<a href=\"https:\/\/financhill.com\/search\/seasonality\/BRK.A\">BRK.A<\/a>]<\/strong>, Buffett has amassed a fortune valued at $71.5 billion. This puts him in 5th place on the Bloomberg Billionaires Index, behind big names like <a href=\"https:\/\/financhill.com\/blog\/investing\/jeff-bezos-leadership-style#:~:text=Jeff%20Bezos%20Leadership%20Style,transformational%20and%20task%2Doriented%20leader.&amp;text=With%20Bezos'%20long%2Dterm%20goals,grow%20and%20expand%20over%20time.\">Jeff Bezos<\/a>, Bill Gates, and Mark Zuckerberg &#8211; but well ahead of brilliant entrepreneurs like Elon Musk.\u00a0<\/span><\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/stock-score\/BRK.A\" width=\"720\" height=\"500\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p><span style=\"background-color: transparent;\">All sorts of analysts, financial experts, and scientists in search of a secret to success have studied Buffett\u2019s story. They have examined everything from his education and work experience to his breakfast habits. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">While no one has created a reliable formula that can match Buffett\u2019s ability to predict the future of given organizations, researchers have made a few discoveries. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">In particular, <strong>Buffett was able to make the most of his exceptional talents because of his circumstances. He was in the right place, with the right skills, at the right time to create an empire.\u00a0<\/strong><\/span><\/p>\n<h2><strong style=\"background-color: transparent;\">The Ovarian Lottery<\/strong><\/h2>\n<p><span style=\"background-color: transparent;\">Buffett doesn\u2019t consider it an insult when people point out that circumstances played a role in his success. In fact, <strong>he has said on multiple occasions that he \u201cwon the ovarian lottery\u201d. <\/strong><\/span><\/p>\n<p><span style=\"background-color: transparent;\">In one memorable meeting of Berkshire Hathaway shareholders, he spoke about this concept and explained that \u201c<em>many of the advantages you get in life, such as your nationality or your health, are determined by chance<\/em>.\u201d <\/span><\/p>\n<p><span style=\"background-color: transparent;\">He has also mentioned that he doesn\u2019t believe he could have achieved the same success if he hadn\u2019t been born both white and male.\u00a0<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"WARREN BUFFETT on being at the right place right time and luck with wealth\" width=\"660\" height=\"495\" src=\"https:\/\/www.youtube.com\/embed\/uZTweMHEFAI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"background-color: transparent;\">These advantages, in conjunction with other factors like <strong>his father\u2019s experience as a stockbroker, a supportive family, early access to business-related information available at his city\u2019s well-stocked library, and a relationship with mentor Benjamin Graham, gave Buffett a head start. <\/strong><\/span><\/p>\n<p><span style=\"background-color: transparent;\">He understood value before the vast majority of his peers, and he led the way in capitalizing on that knowledge.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"background-color: transparent;\">Over time, a small collection of investors have learned the principles of intelligent investing from Buffett and other masters, and they have had success in building fortunes of their own. Every so often, one is mentioned as having potential to be the \u201c<em>next Warren Buffett<\/em>\u201d.\u00a0<\/span><\/p>\n<p><span style=\"background-color: transparent;\">Will any of these picks live up to the challenge and match Buffett\u2019s success, or will the real \u201cnext Warren Buffett\u201d come from somewhere else entirely?\u00a0\u00a0<\/span><\/p>\n<h2><strong style=\"background-color: transparent;\">Is Seth Klarman the Next Warren Buffett?<\/strong><\/h2>\n<p><span style=\"background-color: transparent;\">Seth Klarman has adopted many of Buffett\u2019s value investing techniques, along with a few of his own. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">As a result, he has amassed his own multi-billion-dollar fortune, and he heads the Baupost Group &#8211; a long-only hedge fund that was founded in 1982. Some of the guiding principles Klarman adheres to include:\u00a0<\/span><\/p>\n<ul>\n<li><strong>Focus on the acquisition of bargain-priced assets<\/strong><\/li>\n<li><strong>Choose investments based on the quality of the company and its leadership<\/strong><\/li>\n<li><strong>Diversify strategically<\/strong><\/li>\n<li><strong>Cultivate patience<\/strong><\/li>\n<li><strong>A bad investment is worse than no investment<\/strong><\/li>\n<li><strong>There is no need to take on excessive levels of risk to reap strong rewards<\/strong><\/li>\n<\/ul>\n<p><span style=\"background-color: transparent;\">Perhaps most telling of all, Klarman is affectionately known as the Oracle of Boston, illustrating that the investing world has taken notice of the similarities between Klarman and the great Warren Buffett. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">But will he really be the \u201cnext Warren Buffett\u201d? After all, there is stiff competition for the title.\u00a0<\/span><\/p>\n<h2><strong style=\"background-color: transparent;\">The Next Warren Buffett: Eddie Lampert?<\/strong><\/h2>\n<p><span style=\"background-color: transparent;\">It\u2019s true that Eddie Lampert has fallen from grace, but at one time, he was seen as the obvious answer to the question, \u201cwho is the next Warren Buffett?\u201d <\/span><\/p>\n<p><span style=\"background-color: transparent;\">Lampert spent his early years rubbing elbows with men who would later become movers and shakers in the business and political worlds. For example, Secretary of the Treasury Steve Mnuchin was once Lampert\u2019s college roommate, and they later worked together on some of Lampert\u2019s most successful projects.\u00a0<\/span><\/p>\n<p><span style=\"background-color: transparent;\">In the late 1980s, <strong>Lampert founded a hedge fund he named ESL Investments, and he rapidly gained a reputation as a stock market savant.<\/strong> <\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"NYT&#039;s Jim Stewart on his interview with former Sears CEO Eddie Lampert\" width=\"660\" height=\"371\" src=\"https:\/\/www.youtube.com\/embed\/6HmQ2dj2V6Q?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"background-color: transparent;\"><strong>The fund achieved annual gains that averaged approximately 30 percent per year in its first 15 years, which easily topped almost every competitor.<\/strong> In 1998, Lampert further wowed the business world by returning the struggling AutoZone to profitability.\u00a0<\/span><\/p>\n<p><span style=\"background-color: transparent;\">Unfortunately, Lampert discovered that success wasn\u2019t always a given after he attempted to turn the iconic Sears company around. Unfortunately, <strong>Sears\u2019 situation has only gotten worse, taking Lampert\u2019s reputation &#8211; and his hedge fund &#8211; down, too.\u00a0<\/strong><\/span><\/p>\n<p><span style=\"background-color: transparent;\">Could Eddie Lampert still be the next Warren Buffett? For the moment, it doesn\u2019t appear so. However, many look to his past successes and wonder if he may pull off a comeback. When it comes to investing, anything is possible.<\/span><\/p>\n<h2><strong style=\"background-color: transparent;\">The Next Warren Buffett Will Be a Computer Algorithm<\/strong><\/h2>\n<p><span style=\"background-color: transparent;\">Some people have an instinctive understanding of the market, and they use proven investment principles to maximize their returns. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">From the outside, investors like Warren Buffett, Seth Klarman, and Eddie Lampert appear almost magical in their ability to generate massive wealth. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">Buffett pioneered value investing, and he has had tremendous influence on those new to the industry. He set the standard for success, so it is inevitable that he is considered the standard against which all others are measured.\u00a0<\/span><\/p>\n<p><span style=\"background-color: transparent;\">The competition between professional investors is more fierce than ever before. The thing is, <strong>when observers measure today\u2019s movers and shakers, they are forgetting a very important fact. Advances in technology, particularly around big data, machine learning, and artificial intelligence, will completely transform the market.<\/strong>\u00a0<\/span><\/p>\n<p><span style=\"background-color: transparent;\">People simply can\u2019t collect and analyze data at the rate computers can, and there is more information available than ever before. <\/span><\/p>\n<p><span style=\"background-color: transparent;\"><strong>The \u201cnext Warren Buffett\u201d won\u2019t be a person who uses traditional models to make investment decisions.<\/strong> <\/span><\/p>\n<p><span style=\"background-color: transparent;\">Instead, algorithms will take over the decision-making process, and the ones who develop and apply the most effective algorithm will emerge as the winners. <\/span><\/p>\n<p><span style=\"background-color: transparent;\">That dramatically changes the list of candidates with potential to be the next Warren Buffett &#8211; and in fact, the title is likely to go to a computer algorithm in the end.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who is the Next Warren Buffett? Warren Buffett, often referred to as the Oracle of Omaha, is nothing short of a legend in the world of investing. He has an extraordinary ability to see through marketplace clutter and pluck out businesses that deliver strong rewards to shareholders. Through his holding company, Berkshire Hathaway [BRK.A], Buffett [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":407064,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[22],"tags":[],"class_list":["post-407063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/financhill.com\/blog\/wp-content\/uploads\/2020\/06\/who-is-the-next-warren-buffett.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9czeV-1HTx","_links":{"self":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/407063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/comments?post=407063"}],"version-history":[{"count":1,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/407063\/revisions"}],"predecessor-version":[{"id":407065,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/407063\/revisions\/407065"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media\/407064"}],"wp:attachment":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media?parent=407063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/categories?post=407063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/tags?post=407063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}