Buffett is often quoted as saying he likes to buy a business good enough that any idiot can run because eventually one will. As it turns out Buffett got that nugget from Peter Lynch and this is the proof of it. Watch this interesting video of Buffett being Buffett.
Warren Buffett – How to Identify a Good Investment
In many ways you won’t find two dissimilar famous investors as Peter Lynch and Warren Buffett. Buffett invests in a concentrated way often saying things like the odds of your tenth best idea being as good as your first is low. Or you should treat investing as if you had a punch card and you could only put so many holes in it and when you used it up, it was gone. Lynch invested in hundreds of stocks and liked to visit the companies and kick the tires. Buffett is famous for staying home in Omaha. But when I go over many of these items on Lynch’s checklist, it seems like vintage Buffett. Dull, uninteresting, people have to keep buying it, the company is buying back shares are all things Buffett could have written. Their returns through out a comparable period of time were also similar. From 1977 until 1990, the Magellan fund averaged a 29.2% return. During the same period, Buffett’s investing vehicle, Berkshire Hathaway averaged 20.06%. Two different investors but similar results produced by two different plans with much in common.