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20% annualized gains
It seems Warren Buffett is the king of investing. He has been around for a while and again he seems to outperfom over the long term. His shareholders have seen 20% annualized gains over the past 45 years.

The mutual funds that comes closest to Buffett’s performance is Fidelity Magellan Fund with 16.3% a year and Templeton Growth Fund with 13.4% a year.

Some attribute the success to Buffet’s philosophy of thinking of oneself as a long term owner of the company instead of just an investor.

Buffet on the housing market
“Within a year or so, residential housing problems should largely be behind us,” Buffett wrote Feb. 27 in his annual letter to shareholders of his Berkshire Hathaway Inc. “Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.”

“Still, he and Vice Chairman Charlie Munger passed up opportunities when they weren’t able to evaluate the future of a business, even in a compelling industry, he said. That strategy has allowed the company to perform better than the benchmark Standard & Poor’s 500 in every year when both Berkshire and the index have fallen.”

“We’ve put a lot of money to work during the chaos of the last two years,” Buffett wrote. “It’s been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance.”

“We pay a steep price to maintain our premier financial strength,” Buffett wrote. “The $20 billion-plus of cash- equivalent assets that we customarily hold is earning a pittance at present. But we sleep well.”