Investment companies like Berkshire Hathaway, JAB Holding, and mutual funds have achieved solid long-term returns through professional management, diversification, and focus on high-quality assets. By analyzing their investment strategies and portfolio performances, we can better understand the keys to successful investing for companies.
Berkshire Hathaway’s investment philosophy centers on value investing and selective acquisitions
As led by Warren Buffett, Berkshire Hathaway has delivered 20%+ annual returns consistently by focusing on undervalued stocks and acquiring whole companies at attractive valuations. Its $700B portfolio today covers insurance, railroads, utilities, manufacturing, and more.
JAB Holding pivoted to build consumer-focused investment platforms since 2011
Over the past decade, JAB Holding has transformed from a family office to an investment company concentrated in coffee, restaurants, petcare and other consumer platforms. Its post-2011 assets have achieved 17% annualized returns.
Mutual funds provide professional management and diversification benefits
With over $5 trillion in assets today, mutual funds allow small investors to access professional stock-picking expertise. Their diversified portfolios also reduce volatility compared to owning just a few stocks.
Successful investment companies like Berkshire Hathaway and JAB Holding focus on long-term compounding and high-quality assets. Mutual funds also capture diversification benefits. Understanding their proven approaches can guide both institutional and retail investors.