Today, I might ramble somewhat. Last Friday, I read Warren Buffett’s official farewell letter. It struck a chord in my heart. Warren Buffett is the quiet mentor sitting on my bookshelf for almost two decades. |
I first heard the name Warren Buffett in 2007 or 2008. It was during my army days. The only thing I knew about him was from my army mate. He said (roughly) along the line:
That comment planted a seed in me.
Until then, I realized getting rich doesn’t need to be building big factories, or being the next Bill Gates. Here was a man I first heard who got rich by buying pieces of businesses and letting the power of compounding do the heavy lifting.
An ordinary person like me could do the same. That changed the way I look at money, and life.
A few years later, I was lost in the jungles of the stock market, trying to figure out what Japanese candlesticks, RSI, support and resistance were. Then the name came back.
I was at a family gathering at my grandma’s place. My cousin, who was trading forex then, passed me a book: The Essential Buffett.
Warren Buffett. That name rang a bell. Well, never try never know. So I read the book…
And something clicked.
Buffett taught me to invest by picking stocks as a piece of a real quality business – not a ticker that blinks green and red. Then he taught me to have a margin of safety. This hit me instantly as an engineering student.
But you see, back then I was also pulling my hair out because somehow after I bought my stock, somehow the prices kept dropping. Now I understood why: not to overpay for these businesses.
Warren Buffett’s principle was a new pair of lenses.
And that principle followed me into my career.
Of course, I didn’t get everything right. But his principles kept me away from the huge mistakes that could have really hurt.
As a former fixed income analyst, they helped me avoid China’s biggest bond default, flag the risks in Hyflux when nobody listened to me, and steer private clients away from the ugly Singapore oil & gas defaults.
I learnt in investing, you don’t have to be right all the time. You just need to avoid the mistakes that you cannot recover from – whether it’s a stock, a bond or a property investment.
I’ve met many CEOs and founders. I’ve sat through countless management meetings. Not many could write as transparently and honestly as Warren Buffett does in his letters. He helped me swing through the stock market jungle.
The funny thing was, in private banking, nobody really talked about Warren Buffett. Once, I was at the pantry with a senior colleague, so excited to share about Warren Buffett when he just raised an eyebrow:
That’s exactly why I strongly believe retail investors like us can look after our own money, not rely on bankers to achieve our financial goals. In the fast-paced financial industry, how many bankers are paid to be patient with you?
What struck me was how Warren Buffett had carved his own path. Instead of working on Wall Street, just like any other fund manager, he started his own Buffett Partnership, a hedge fund.
Then, he built Berkshire Hathaway from Omaha, a quiet city in Nebraska, close to home. He has worked from the same office building at Blackstone Plaza (formerly Kiewit Plaza) since 1962.
From day one, Buffett decided to create a life on his own terms. That made me reflect on what it means to build a life that truly aligns with our own internal compass. He showed me it’s possible to create a life by design, not by default.
Despite his immense wealth, he never chased things that would have “trapped him”.
Warren Buffett took the simple idea of compounding very seriously. From 1965 to 2025, Berkshire Hathaway compounded at 19.7% per year. It gained 6,099,294% during that period.
Nothing is easy. Berkshire Hathaway’s shares fell more than 50% at least three times. In fact, Warren Buffett was criticized heavily before, especially during the dotcom bubble when Berkshire underperformed the most popular stocks at that time (sounds familiar, today?)
Here’s the part I find the most encouraging.
Warren Buffett started as a deep value investor – buy cheap, mediocre businesses. Yet he was adaptable – no matter how old he was. Even in his late 50s, he was willing to change his investment strategy to paying fair prices for wonderful businesses.
The most notable investment was buying Coca-Cola when he was 57 or 58 years old. That became one of his best investments ever. And his secret logic to compounding massive wealth.
It’s never too late to start investing or even change your investing strategy.
Over the years, I’ve learnt much about business, life and investing from Buffett. He made me a better investor and analyst.
Man, his letter hits hard as I read the last part again:
Thank you, Mr. Buffett. You gave me a life skill that helped me to be financially independent.
What life skills have you learnt from a mentor? Hit me a reply – I’m curious to know too.
Sometimes, investing can be simple.
Willie Keng, CFA
Founder, Dividend Titan
