The Warren Buffett era is ending. Here are five investing lessons from the GOAT | Fortune

"If you had put $1,000 into the S&P 500 index at the beginning of those 60 years, you'd now have $441,196-a tremendous reward for doing nothing. But if you had put your $1,000 into Berkshire stock, you would now have a truly incredible $59,681,063. Another way to think of it: If you had invested $20,000 back then, you would today be a billionaire. Without doing a thing."

"As astonishing as the numbers are, another facet of Buffett's career is at least as remarkable. Through it all, he has happily, exuberantly told the world exactly how he does it. He holds no investing secrets. In speeches, interviews, and his annual letters to Berkshire shareholders, he has explained what he looks for, what he ignores, and how he thinks. Buffett bought his first stock (Cities Service Preferred, the oil and gas company known today as Citgo) when he was 11 years old."

"Few can spend many hours a week analyzing stocks. Buying managed mutual funds in which professionals choose stocks may seem a good alternative, but it isn't. Research has long found that over 10-year spans, most managed funds underperform the market. A few managed funds still outperform the market over the long run, but they aren't the same funds from decade to decade, and identifying the few winners in advance has proved impossible."

Berkshire Hathaway delivered extraordinary long-term returns: $1,000 invested in the S&P 500 sixty years ago would be $441,196, while $1,000 in Berkshire stock would be $59,681,063; $20,000 then would now equal a billionaire stake. Investment guidance emphasizes transparency, revealing selection criteria and thought processes. For most individual investors, the recommended allocation is primarily a low-cost S&P 500 index fund with a small portion in short-term Treasuries, since most actively managed funds underperform over decades and winners are unpredictable. Core principles include long-term buy-and-hold, focusing on durable businesses within one’s competence, buying at reasonable prices, and keeping cash for opportunities.

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