QUALITY INVESTING & SHAREHOLDERS – WHY WARREN BUFFET BELIEVES THEY PRODUCE BETTER INVESTMENT RESULTS

August 27, 2021

Part 2 of 2

In this era of indexing the investors who research and buy individual companies are becoming a rarity – some would say a throwback – to another era.

The most obvious example is Warren Buffett, the nonagenarian Chairman of Berkshire Hathaway who is widely considered to be one of the greatest, if not the greatest American investor in recent memory.

Buffett is famous for buying quality companies for the long term, in his words “forever”.

He is less well known for his emphasis on seeking “high quality shareholders”, stock owners who stick around for the long-term, whom he has succeeded in attracting to Berkshire Hathaway.

This is part two of our interview with Lawrence Cunningham a Professor of Law at George Washington University who is also a driving force behind the university’s “Quality Shareholders Initiative”, intended to research and report on “high quality shareholders”, as they are dubbed by Buffett – traditional investors that study individual companies, acquire substantial stakes in only a few and hold them for the long-term. (Part 1 available here)

The theme of this week’s discussion with Cunningham is quality in companies and shareholders and why a combination of the two often leads to better investment results.

WEALTHTRACK Episode #1809; Originally Broadcast on August 27, 2021

Listen to the audio-only version here:

Explore This Episode

We have compiled additional information and content related to this episode.

LAWRENCE CUNNINGHAM

Professor of Law, George Washington University
Author, The Essays of Warren Buffett: Lessons for Corporate America

ACTION POINT

BECOME A QUALITY SHAREHOLDER

READ Quality Shareholders: How the Best Managers Attract and Keep Them

“By following Cunningham’s prescriptions, companies can…improve economic returns and individuals have a roadmap to become quality shareholders and improve their investment results.”
– Robert Hagstrom, Author, The Warren Buffett Way