From 11 million to 1 billion

Jason Jweig profiled remarkable investor and friend Warren Buffett named Joseph Rosenfeld, who led the investment committee of Grinnell College, a small school in Iowa.

“Joe,” says Buffett, “is a triumph of rationality over conventions onalnostta.” By ignoring conventional wisdom of investing, Rosenfield is make your money grow faster and longer than almost anyone alive investor. Since 1968, he has made $ 11 million to more than $ 1 billion. He has acquired these gains are not as fast with hundreds of fire operations, but by buying and holding – often for decades. For 30 years, he has done less than half a dozen large investments and sold even more rare. “If you like one share,” says Rosenfield, “must be prepared to hold it and do nothing.”

These are the lessons from Joe Rosenfeld, summarized by Jason Jweig.
Do a few things well. Rosenfeld built a portfolio of billion dollars not putting some money in everything looks good, and putting a lot of money in a few things that seem great. Similarly, if you find a few investments that you understand really well, buy them wholesale. However, Rosenfield is a rare exception. Without his superior knowledge, skills and relationships most of us mere mortals will have to diversify its portfolio widely in cash, bonds, and US and foreign shares.

If you find investments that you clearly understand hold. As their long-term potential is what makes you buy them in the first place, never a disappointment short scare you to sell. Patience, measured not only in years but decades, is the single most powerful weapon investor. Note hardness Rosenfield: In 1990, just after he bought Freddie Mac, the stock has fallen by 27%, but Rosenfield never panicked. Instead, he simply waited. “Joe invest without emotion,” says Buffett, “and analysis”.

Invest some reason. Rosenfield is living proof that wealth is a means to an end, not samostoyatelsna purpose. His only child died in 1962 and his wife died in 1977. He gave much of his life and all his wealth of Grinnell College. “I just wanted to do something good with the money,” he says. This is a lesson for us all. Instead of blindly strive to make an increase in our money or measure our wealth by our possessions, each of us must ask: What is the benefit of our money if you never do anything good with them? Is there a way to ensure that my wealth to outlive me and bring honor to my name?

Varchev Finance