The biggest factor in Warren Buffet’s wealth is time. Warren’s remarkable results come from steady growth over a large magnitude of years. He also has the sense not to lock in losses and sell at the bottom of a market.
Warren Buffett leverages an intense knowledge of business and the market to increase his returns. He says that knowledge compounds just like money does.
Not only is Warren learning every day, but he is focusing his operations on what he knows well. By operating outside of your circle of competence, there is a much higher degree of risk.
He looks for management that takes shareholders into consideration above the institutional imperative.