Product Reviews

I'd listen to Warren Buffett to grow my wealth with ASX shares

When it comes to investing in ASX shares, you could do a lot worse than listen to the advice of the Oracle of Omaha, Warren Buffett. Over almost six decades now, the legendary investor’s Berkshire Hathaway (NYSE: BRK.B) business has smashed the market with some mind-boggling returns. In fact, Buffett’s most recent letter to shareholders reveals that the conglomerate’s book value per share has grown by an average of double the stock market return since 1965.

And that’s not because the stock market has delivered pitiful returns. Far from it! The S&P 500 index has generated an average return of 9.9% per annum since 1965.

It’s just that Buffett has found a way to achieve a return of 19.8% per annum over the same period. So, what’s the secret to Buffett’s success? Well, the good news is that there isn’t a secret and anyone can follow his investment style.

Investing like Buffett with ASX shares

While Buffett is well-known for loving a bargain, his focus is more on quality than how cheap something looks.

He once explained:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

But what makes a company wonderful and how can we find ASX shares with these qualities? Buffett believes sustainable competitive advantages, or moats, are of the utmost importance when investing. In his 2007 letter to shareholders, he explained:

A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital.

The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns. Therefore a formidable barrier such as a company’s being the low-cost producer (GEICO, Costco) or possessing a powerful world-wide brand (Coca-Cola, Gillette, American Express) is essential for sustained success. Business history is filled with ‘roman candles’, companies whose moats proved illusory and were soon crossed.

Where to find moats on the ASX?

There are a number of ASX shares that have moats.

These include toll road operator Transurban Group (ASX: TCL), realestate.com.au owner REA Group Limited (ASX: REA), and biotherapeutics giant CSL Limited (ASX: CSL). There’s also the Buffett-inspired VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT) to consider, which only invests in companies with moats. And if you need any more proof that following Buffett’s advice could be the smart thing to do, you only need to look at this ETF’s returns.

Over the last decade, the index it tracks has generated an average return of 18.64% per annum.

That would have turned a £10,000 investment into approximately £55,000 over the 10 years.

Tags: AT Coca-Cola Gillette

sea-life-centres-and-sanctuaries listed on couponmatrix.uk

singapore-airlines listed on couponmatrix.uk

Buying a gift can be a stressful time, how many times have you received something that has been boring and not captured your imagination? Well, Buyagift aims to put an end to boring gifts by offering experience gifts that will create memories that last a lifetime. How often do you get to drive a tank, be part of a zombie invasion or fly a hovercraft? Buyagift brings these once-in-a-lifetime experiences to you, and with a Buy a Gift discount code, they come at the best possible price. It's not just gifts for adrenaline junkies that they sell, you can book a romantic weekend away at a country retreat, a spa day at a luxury resort, a meal at a Michelin restaurant or a stadium tour at their favourite football team. No matter what gift you choose you'll be sure of creating a memorable day.

Lycamobile is the world’s largest mobile network, delivering super-fast connections in over 22 countries. Whether you’re home or abroad, Lycamobile has your back with EU roaming included in the package, so you can chat and stream internationally without sinking your rainy day fund. Check out the Lycamobile offers for a cheap-as-chips SIM-only deal from less than a fiver or affordable packages on the latest iPhone, Samsung and Google Pixel. With an easy switching service and the chance to unlock unlimited data, texts and minutes for a pittance, there’s no reason not to go with Lycamobile.

Dive into a world of watery adventures with Sea Life. With amazing aquarium attractions all over the country, you’re sure to have a day packed full of family fun! With our Sea Life Centre vouchers you can save big on your booking. As well as providing a fun-filled attraction, Sea Life Centres are committed to conservation and protection of marine life. Explore the amazing wildlife of our oceans while helping to protect and preserve - it’s a win-win!

Escape with Singapore Airlines and let one of the world’s youngest fleets fly you to more than 60 cities in more than 30 countries across the globe, from Australia to Vietnam to Houston from Manchester. Connect seamlessly to more of Asia with its regional carrier SilkAir. The world is yours. Since its beginnings in 1947, Singapore Airlines has always strived to be at the top of its game. The history of Singapore Airlines tells a tale of reinvention and innovation that makes it the world’s most awarded airline. The story began back in 1947, when Malayan Airways Limited commenced the weekly Airspeed Consul twin-engine airliner flights from Singapore Kallang Airport to Kuala Lumpur, Ipoh and Penang. At the height of the golden Jet Age in 1966 the airline was renamed Malaysia-Singapore Airlines and in 1968 the custom-made sarong kebaya uniforms by French couture-designer Pierre Balmain – became the calling card of the brand. From 1972 the airline was known as Singapore Airlines and had launched its first transcontinental flights (the same year that the famous Singapore Girl came into existence). In 1977, British Airways and Singapore Airlines shared a Concorde for flights between London and Singapore International Airport. It delivered another first when it flew a commercial B747-400 aircraft across the Pacific in 1989 and once again when it broke its own world record for the longest non-stop commercial flight from Singapore to New York. Then, of course, there was the first commercial flight of an A380 in 2007. The airline continues to revolutionise itself with the philosophy of offering the best service in the air and on the ground. It has unveiled new cabin classes, invested in its lounges and introduced new mobile offerings, making it a great way to fly. Begin your next adventure to Asia, Australia and New Zealand in style with 5-Star Skytrax rated Singapore Airlines, the world’s most awarded airline. Recent accolades have included gongs for ‘Best Long-Haul Airline’ and ‘Most Recommended’ from the Guardian in 2016. Relax and enjoy the hospitality of our renowned cabin crew onboard one of the most modern, comfortable and spacious fleets in the skies. There are four daily flights from London Heathrow to Singapore, or you can hop on the direct daily flight from Manchester. From 31st October 2016 Singapore Airlines will operate its inaugural transatlantic flight connecting Manchester with Houston. In addition, you can travel to Heathrow from more than 25 cities in the South-West, Wales and Midlands using Coach-Fly and Rail-Fly. Why not break up the journey to Asia, Australia and New Zealand in vibrant Singapore. The Singapore Stopover Holiday includes exclusive discounts on hotels, return airport transfers and access to over 15 top attractions. You’ll also get a Changi Dollar Voucher (CDV) worth S$40 when you transit through Singapore to spend on whatever you want.

Get the latest tech secondhand from Stone Refurb, like Windows laptops, MacBooks, iPads, monitors and Apple iPhones. Whether you need a laptop for work, a desktop PC for gaming or a new phone, Stone Refurb has you covered. All orders are dispatched with free delivery, and you can use our Stone Refurb discount code for an additional saving. We’re tracking the best Stone Refurb offers here, so take a look before you make your purchase.

The Brehon is a luxury hotel located in the heart of Killarney, County Kerry. We are proud to offer our guests the best in Irish hospitality, with discount code luxurious accommodations and discount code impeccable service. Discover your next adventure, whether you're looking for a romantic getaway or a family holiday. We hope you'll take advantage of our Brehon discount code and enjoy all that The Brehon has to offer. Thanks for choosing us! At Groupon, we love helping people save money. That's why we've got a team of experts who work hard to find the best discount codes and deals for our customers. We know that everyone loves a bargain, so we're always on the lookout for ways to help you save. Explore our The Brehon deals, you may find exclusive discounts that you won't find anywhere else. Happy shopping! Besides the luxurious accommodation and quality service, it’s the accompanying Danú restaurant and Angsana spa that complete the comprehensive experience of The Brehon. Be sure to book your room utilising the latest The Brehon deal to have plenty extra spare to invest in a luxurious treatment or extravagant dinner. Believe us, the relief and flavour provided will make your stay at The Brehon a treasured experience you’ll value for years afterwards. Be sure to check back often and take advantage of our Brehon deal to get the most savings on your next purchase.