Buffett’s Phenomenal Record: Doubling His Money Every Three Years!‏ ~ Adam Khoo

Over the last 49 years, Warren Buffett managed to achieve a 24.7% annual compounding rate of return, which means he doubled his money every 2.9 years for half a century!

He turned an investment of $100,000 into a staggering $42 billion. How was he able to consistently beat the market (only 10% of professional fund managers are able to beat the S&P 500 Index every year) and all the smartest money managers on Wall Street?

Well, it was because his beliefs, philosophies and investing strategies went totally contrary to the average money manager or individual investor.

This is why Buffett is known as a 'Selective Contrarian Value Investor'. When most people started selling a stock, he would jump in and buy as much as he could (if he knew it was actually a good company that was under-priced) and when everyone starting buying astock and pushing the price up, he would sell for a huge profit.

During the Dot Com euphoria that drove the stock market to new highs in 1999-2000, just about every investor was buying into technology stocks and ignoring old-economy stocks. Everyone... that is, except Warren Buffett.

He did the complete opposite by selling all the stocks he owned and held on to cash, sensing that the biggest crash in history was going to come.

By understanding the true worth of the technology companies, he knew that their stock prices were insanely overvalued. However, everyone started criticizing the old man for losing his touch and missing out on a great bull run.

Sure enough, the market plunged by over 40% over the next year and turned former stock market millionaires into bankrupts. All the funds on Wall Street lost millions of dollars, except WarrenBuffett's company Berkshire Hathaway.

Once the market hit rock bottom and everyone avoided buying anything, Buffett took all his cash and picked up some of the most valuable companies for half their price, now that panic had caused companies to become undervalued as he expected. Within the next three years, he sat on billions of dollars in profit.

Today, his company Berkshire Hathaway is the most expensive companyin the world, with a share price of over $100,000 per share!

Buffett proves that he is a legendary investor whose methodologies and mindset are definitely worth learning and modeling after.