Investing Styles of Warren Buffett and Bill Miller

Investing styles of various prominent investors and funds take into account a wide range of factors. Their popularity in terms of attention from the investment community directly correlates with their success rates. The measurement of the success rate implies the comparison portfolio performance against the respective market. Warren Buffett and Bill Miller are amongst the most prominent figures in the investment industry because of their historically confirmed ability to outperform the market on a consistent basis. Therefore, there is sufficient evidence to compare and contract investment styles and approaches of Warren Buffett and Bill Miller. Furthermore, it will be possible to determine the main factors contributing to the success rates of the respective approaches.

Warren Buffet has been an active investor and the Chief Executive Officer (CEO) of Berkshire Hathaway Inc. The company has been active in acquiring other firms through its subsidiaries. The markets have been demonstrating primarily positive reaction to acquisitions through increases of the company’s share price (Bruner and Carr). Warren Buffett remains amongst the richest individuals in the world, while serving as a CEO of Berkshire Hathaway Inc. The company has been paying its CEO $100 000 per annum, while he and the other insiders were holding 41.8 percent of the company as of May 2005. In addition, Mr. Buffet has stated that he was keeping 99.0 percent of his personal wealth with the company. The mix of the limited compensation for the position of the CEO and personal interest in success of Berkshire Hathaway Inc., were contributing to the investment attractiveness of the company for the other investors. Warren Buffett was pursuing an investment style of value investing, while acknowledging the effectiveness of the other approaches. Acquisition of PacifiCorp by the subsidiary of Berkshire Hathaway, MidAmerican Energy Holdings Company, was reflecting the approaches of Mr. Buffett towards investments, valuation, and long-term vision.