The Warren Buffett Way Of Patient Investing

F investors were to be measured based on temperament, there would perhaps be nobody like Warren Buffett, the legendary American investor.

- RAJAS KELKAR

In his annual letter to shareholders, a tradition he has followed for 60 years, he shows why stock market investing is about patience.

On one hand, he is committed to investing the company's money in equity assets. On the other hand, he has piled up cash, cash equivalent, and liquid US treasury investment ($332), which probably dwarfs the foreign exchange reserves of over 140 countries. The pile has more than doubled over the past four years.

If you regularly follow his shareholder letters, you could have read his commentary about fortifying the company against any eventuality. He has often explained that the company's finances are impregnable because of its cash and liquid assets on the balance sheet. He argues in his letters that there has been no finish line at Berkshire Hathaway over the years and that the company is built to last.