Theses (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: This study project concentrated on the investment approach of one individual
that consistently achieved above average investment returns over a period
of fifty years and became the second richest person in America primarily
through the use of his unique investment skill and philosophy. He managed
to increase a $100 personal investment in 1956 into a personal net worth of
$46 billion in 2006. This person is Warren Buffett, and the primary goal of
the study project was to integrate and summarise the main features of his
investment approach and philosophy as described in the many books,
articles and essays written about him .
The study project further strove to use findings from contemporary scientific
works to support and validate the scientific soundness of his investment
approach and principles. Finally, the investment approach and techniques
described in the study project were used to systematically analyse and select
a common stock for future investment.
In the author's opinion, the study project was successful at identifying and
highlighting the essential principles of Warren Buffett's investment approach .
The investment framework presented in Chapter 3 could serve as a guideline
for an investor to apply Buffett's investment approach in a systematic
manner. The framework was successfully utilized by the author to analyse
and identify a so-called "Buffett company" that was trading at a significant
discount to its underlying value. A hypothetical purchase decision by an
investor in this company's common stock would have yielded a significant
return on investment over the long term. An investor that had knowledge of
this investment framework at the time could have "spotted" this opportunity
and capitalised on it. The above conclusion assumed that this hypothetical investor had been
operating within the same "circle of competence" as the author. What might
seem "simple" or "logical" to one investor, might seem completely complex
or irrational to another. In the author's opinion, Buffett's unique "circle of
competence" is the missing "ingredient" to his success formula.
A person's "circle of competence" evolves as a result of the unique blending
of that person's knowledge, experience, personality, attitude, intelligence
and external influences. It is thus unique to an individual and almost
impossible to duplicate by others. Buffett's "circle of competence" could be
viewed as his durable competitive advantage that gave him the insight to
invest successfully.
To lend credibility to the merits of Buffett's approach, the author presented
scientific literature that supported Buffett's investment principles. Many of
Buffett's principles were related to concepts that were named differently, but
essentially had the same meaning. It appeared that Buffett's investment
success stemmed from integrating and utilizing these concepts in an
effective and coherent way, consistent with his "circle of competence"
principle. / AFRIKAANSE OPSOMMING: Hierdie studieprojek fokus op die beleggingsbenadering van 'n individu wat
konstant oor 'n tydperk van vyftig jaar bogemiddelde beleggingsopbrengste
behaal het. Hy het deur sy unieke beleggingsvermoens en filosofie die
tweede rykste man in Amerika geword. Hy het dit reggekry om 'n $100
persoonlike belegging in 1956 te vermeerder na 'n persoonlike nettobatewaarde
van $46 biljoen in 2006. Sy naam is Warren Buffett en die
primere doel van hierdie studie is om die belangrikste kenmerke van sy
beleggingsbenadering en filosofie, soos beskryf in vele boeke, artikels en
verhandelings te integreer en op te som.
Hierdie studie streef ook om van kontemporere wetenskaplike bevindings
gebruik te maak om te bewys en te ondersteun dat sy beleggingsbenadering
wetenskaplik gegrond is. Daarna is hierdie beleggingsbenadering en
tegnieke prakties gebruik in die stelselmatige analise en seleksie van 'n
gewone aandeel vir 'n moontlike toekomstige belegging.
Volgens die skrywer se mening slaag hierdie studie daarin om die
belangrikste beginsels van Buffett se beleggingsbenadering te identifiseer en
uit te lig. Die beleggingsraamwerk in Hoofstuk 3 kan dien as 'n riglyn vir 'n
belegger om Buffett se beleggingsbeginsels stelselmatig toe te pas. Hierdie
beleggingsraamwerk is suksesvol deur die skrywer toegepas om 'n
sogenaamde "Buffett maatskappy", wat verhandel het teen 'n aansienlike
afslag tot sy onderliggende waarde, te analiseer en te identifiseer. 'n
Hipotetiese aankoopbesluit deur 'n belegger van hierdie maatskappy se
gewone aandele sou oor die lang termyn 'n beduidende opbrengs gelewer
het. 'n Belegger wat kennis gedra het van hierdie beleggingsraamwerk kon
die beleggingsmoontlikheid ge"identifiseer het en so daarop gekapitaliseer
het. Die bogenoemde gevolgtrekking veronderstel dat die hipotetiese belegger
binne dieselfde "kring van bevoegdheid" as die skrywer funksioneer. Wat
logies en eenvoudig vir een belegger voorkom, Iyk dalk totaal kompleks en
irrasioneel vir 'n ander. Na die skrywer se mening is Buffett se unieke
insigte en vermoens (kring van bevoegdheid) die ontbrekende bestanddeel
tot sy suksesformule.
'n Persoon se "kring van bevoegdheid" ontwikkel as gevolg van 'n unieke
vermenging van daardie persoon se kennis, ervarings, persoonlikheid/
houding, intelligensievlak en eksterne invloede. Dit is dus uniek tot elke
individu en bykans onmoontlik om deur 'n ander te dupliseer. Buffett se
"kring van bevoegdheid" kan dus gesien word as sy volhoubare
kompeterende voordeel wat aan hom die insig verskaf om suksesvol te belê.
Om geloofwaardigheid aan Buffett se benadering te verleen, het die skrywer
wetenskaplike literatuur verskaf wat sy beleggingsbeginsels ondersteun.
Baie van Buffett se beginsels stem ooreen met reeds bestaande konsepte,
slegs met ander benamings. Dit wil voorkom of Buffett se beleggingssukses
uitvloei vanaf sy integrasie en gebruik van hierdie konsepte in 'n doelmatige
en samehangende manier, wat verenigbaar met sy "kring van bevoegdheid"
beginsel is.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/85262 |
| Date | 03 1900 |
| Creators | De Witt, Sarel Jacobus |
| Contributors | Hamman, Willie, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | xi, 103 p. : ill. |
| Rights | Stellenbosch University |
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