🧠 Warren Buffett's Secret Sauce

How Berkshire outperforms

Hi Friend 👋,

Yesterday I told you about my trip to Berkshire Hathaway.

It’s amazing how much talent is in Omaha during this weekend:

• Hedge fund managers like Bill Ackman.

• Tim Cook, Apple’s CEO

• François Rochon, founder of Giverny Capital

• And many more

As my AirBNB was only 15 minutes away from Warren Buffett’s house, I decided to go for a run and visit his house:

Went for a run to Warren Buffett’s house

I took a lot of notes during the Berkshire weekend.

And I want to share a lesson with you.

Since Buffett announced his retirement, you might have asked yourself: Will Berkshire Hathaway outperform over the next 10 years?

I am quite sure they will.
And I’ll give you my reasoning.
It is something few people pay attention to.

I’m talking about Berkshire Hathaway’s float.

The float is the secret sauce of Berkshire Hathaway.

It’s what makes them outperform the market.

Let me explain it to you.

Float is something common with insurance companies.

It is the money they receive today, but don’t have to pay out until later in the future.

For example, customers pay premiums upfront to insure their health, cars, houses, pets, etc.

But you only pay if something bad happens.

In the meantime, Berkshire Hathaway can invest this money.

It’s exactly what makes them so valuable.

This explains Berkshire’s incredible returns over the years.

I believe the performance will remain strong with Greg Abel at the helm.

As Buffett told investors recently:

“Greg is doing everything I did and then some. He’s doing it better in all cases.”

In other words, the core business principles have not changed.

Berkshire Hathaway will continue to thrive in the years ahead.

Now, in the past year, Berkshire has underperformed the S&P 500 by around 40%.

The last time something like this happened? In 1999.

The years thereafter they massively outperformed the market.

Berkshire was sitting on a pile of cash back then (just like today).

In the midst of the dotcom bubble, Berkshire refused to buy mediocre businesses at unreasonable prices.

But as soon as valuations reconnected with business fundamentals…
The company started buying world class businesses trading below their fair value.

The results?

If you invested $10,000 in Berkshire in 1999...

Your investment would be worth around $400,000 today.

That’s a 40-bagger!

That’s an unparalleled investing record.

But what about the future?
Can we expect similar returns in the years ahead?

Berkshire is sitting on a record cash pile of almost $400 billion.

Like Buffett, Greg is only interested in buying the best companies at a fair price.

Most of the businesses Berkshire could buy are still overvalued today.

This explains his patience, and the company’s cash pile.

It is a conservative approach that doesn’t appeal to most investors.

But when you look at Berkshire’s historical returns, you know it works.

The “Other” Berkshire.

But it gets even better.

I found a company I believe will be The Next Berkshire Hathaway.

Over the past 3 decades, it has returned +14,000% to shareholders.

That’s a return of 18% per year.

Source: Fiscal.ai

But they are still early in their journey.

The company has massive growth potential in the years ahead.

And the stock is currently trading at a huge discount.

Such buying opportunities come around only once in a while.

So when you see them, you should take advantage.

If you’re interested, I can send you the case study today.

All I ask is that you take a risk-free trial of Compounding Quality.

We own 18 amazing companies, including the one I just told you about.

These companies have compounded tremendously since we bought them.

And I’m confident they’ll continue to deliver substantial returns in the years to come.

Normally, Compounding Quality costs $1,200 per year.

But as a way of thanking Warren Buffett for all he’s done over the years…

I want to do something very special for you today.

If you join us this week, you will pay only $399 to become a Founding partner.

That’s a 66% discount off the normal price.

And you get full access to Compounding Quality for one year.

All my money is invested in the companies I write about.

So your success is my success.

If you’re not satisfied after 90 days, just let me know.

I’ll refund the entire cost of your subscription.

Sound fair?

Here’s a summary of everything you get as a Founding Partner:

📈 Exclusive access to my Compounding Quality Portfolio: 18 carefully selected, high-quality stocks built for long-term growth.
🔍 Investment Case #1: The Next Berkshire Hathaway: A deep dive into a hidden gem with the potential to become a generational compounding machine.
💡 Investment Case #2: The Company I Pitched in Omaha: The exact investment thesis I presented at the most prestigious gathering in the investing world.
🎥 Private Zoom Calls with CEOs: Get rare, behind-the-scenes access to the leaders of the very companies in our portfolio.
📄 Exclusive Berkshire Weekend PDF: My most valuable takeaways, lessons, and insights distilled from the full Berkshire Hathaway experience.
🤝 A Thriving Private Community: Connect, learn, and grow alongside a curated group of like-minded, serious investors.

I’m confident you’ll become a little wiser by reading our research.

But as a reminder:

Your 66% discount expires by the end of this week.

After that, you will have to pay $1,199 for access to Compounding Quality.

Do you want to save up to $800 on your subscription today?

It is easy.

1. Head over to this page.

2. Select the Annual Plan.

3. And you’ll be automatically upgraded to Founding Partner status.

Everything in life compounds
Team Compounding Quality
PS There is a 90-day money back guarantee. Take advantage here.

Disclaimer

As a reader of Compounding Quality, you agree with our disclaimer. You can read the full disclaimer here.