Anders Isbrand
Denmark
3m
How Buffett did it Dear fellow investors, in his recent article, How Warren Buffett Did It, Seth Klarman highlights the central traits that to him defines the most successful investor of all time. 1. An alert, quick, accurate, and decisive mind that gives him the ability to form reliable investment judgments. 2. Simplicity of thought, getting right to the heart of the matter in analyzing each investment. 3. The ability to distinguish good investments from bad ones, and great investments from merely good ones—and the insight and conviction to stick with the best ones over time. Buffett, to paraphrase the investment guru Peter Lynch, never cut his flowers or watered his weeds. 4. The ability to stay focused over long periods and avoid distraction. 5. The mental agility to alter his strategy when he found a way to improve, such as when he came to more significantly emphasize the quality of a business in his decision making. Buffett’s legacy is about a disciplined application of timeless principles: Staying within your circle of competence, focusing on business quality, and letting compounding do the heavy lifting over decades. Klarman emphasizes that Buffett’s brilliance was behavioral. He evolved from a value investor with a focus on bargain-hunting to a quality-focused value investor, inspired by figures like Fisher and Munger. In a noisy, short-term world, Buffett proved that rationality, patience, and integrity are competitive advantage. My own perspective and journey: I try to apply the same principles in my own value investing approach here on eToro. I focus on building a $1M portfolio by 2045, rooted in quality, rational analysis, and long-term compounding. In 2025, we achieved a +54% return while keeping a controlled risk profile. Recently, the average amount my copiers invest has doubled to over $1,800, they now copy the Compound72 portfolio with 1,6 mio USD. If the above resonates with you, I’d love to have you join me on this journey toward $1M and beyond. — Compound72 Seth Klarman - who is himself an accomplished value investor, managing roughly 26 billion USD in his hedge fund - wrote this article in the Atlantic on Dec 18th 2025. Link to article (paywall): www.theatlantic.com/ideas/2025/12/warren-buffett-retirement/685294/ I recommend this article from today on Berkshire’s future without Buffett: partners.etoro.com/aw.aspx?A=55714&Task=Click&SubAffiliateID=SocialSharePostcopyLink_28412181&TargetUrl=https%3A%2F%2Fwww.etoro.com%2Fen%2Fposts%2Ff3bdbcb0-ea40-11f0-8080-80012d10bf17&ref=28412181 Notice the absurd difference in total returns over 60 years - Buffett vs. the S&P500:
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