Warren Buffet enjoys success in recession

February 24, 2011 - Digital State Marketing

One of the world’s greatest investors is weathering the financial crisis by practising what he preaches. Warren Buffett’s favourite saying about the financial market is: “be greedy when others are fearful and fearful when others are greedy”. When the market was fearful last September, Mr Buffett was greedy, putting $5bn (£3bn) into the investment bank Goldman Sachs on exceptionally favourable terms. This was a big risk on his part as many high street banks were on the brink of collapse and Goldman Sachs was one of these. The move was especially brave as it came before the US Government’s pledge to save the investment bank. He says he was only able to negotiate the deal because not many people had $5bn to hand at that particular moment. But there is no doubt whatsoever, that Mr Buffett’s public show of confidence in the company was, in itself, a valuable asset to Goldman. Mr Buffet is a firm believer in investing in the future; and as many analysts have seen – the search marketing world is definitely going to be a part of that. A prospective search marketing company will look at Buffet’s firm, Berkshire Hathaway, and rub their hands at the thought of a deal. This could be an issue though; as such a large firm may want to employ their own in-house search marketing team.

 

The deal already looks like a good one for Mr Buffett, with potential profits for him in the billions. He has always enjoyed himself in a falling market, which, as he sees it, provides him with the best opportunities. This approach to business and financial investment has led to a sterling reputation in business and an accolade of being ‘the second richest man in the world,’ title given to him on a recent BBC programme. As if to prove his fabled status as the most successful investor ever, Mr Buffett prints his fund’s spectacular growth record, all the way back to 1965, in the annual report of his company, Berkshire Hathaway. It shows he has achieved an extraordinary 20.3% average annual growth in the company’s value, which – he helpfully works out – comes to a mind-boggling 336,000% over the years – 84 times that of the standard US index fund, the S&P 500. These kinds of figures truly are astronomical, and do show the market could be picking up soon. Mr Buffet’s investment vehicles will place money in all kinds of markets; pension funds, equity markets, fixed interest bonds plus others. The equity stakes will really boost those businesses during the recession. This will in turn mean that they have the capital to invest in modern marketing techniques, none more so than search marketing. In the present business climate, internet marketing is essential for any growth seeking firm, and will require the help of an ethical search marketing company.