One of Warren Buffett's best investors has earned $264 million from Berkshire

One of Warren Buffett's best investors has earned $264 million from Berkshire

The legendary investor Warren Buffett is considered one of the greatest investors of all time. One of his portfolio managers has shown that Berkshire's investing approach can be learned and repeated, evidenced by the mind blowing returns that one of his portfolio managers has generated.

According to a Washington Post interview from late 2021, Ted Weschler, an investment manager at Berkshire Hathaway Inc. NYSE: BRK-B grew his retirement account from $70,000 to $264 million in less than 30 years.

The huge fortune was first uncovered in June 2021 when ProPublica got hold of Weschler's tax returns. Berkshire Hathaway portfolio manager shared some details about how he managed to amass the wealth with reporter Allan Sloan.

In a perfect world, nobody would know about this account, Weschler told Sloan in an email.

I am hopeful that some good can come from it by motivating new workforce entrants to start saving and investing early. Weschler definitely got an early start, and anyone hoping to replicate the feat needs to do the same.

The report states that Weschler started an IRA in 1984 at the age of 22 and by the time he was 27 he had grown his account to $70,384 by maxing out his contributions and doubling down via employer match.

He left his job as a financial analyst and started his journey in private equity. His new role led him to become a hedge fund manager at the turn of the century despite getting off to a rocky start with investments in Continental Health and Intelogic.

The portfolio manager stated that all of the losses are unmonetized lessons. Weschler reportedly generated compound annual returns of 22% for more than a decade before joining Buffett's Berkshire Hathaway in 2012.

He used to focus on companies that he believed were in much better standing than the market was pricing in. Weschler said he spent a lot of time studying companies and industries in order to find important pieces of information that the market was missing.

He recommends that index funds like the Vanguard S&P 500 ETF VOO be focused on index funds that don't have the time. He said they can be very powerful tools for investors who can't closely follow individual investments.

His advice is to keep your money in equities and to tune out anyone who tells you to do something different.

Weschler said that you should start early, maximize employer match, invest 100% in equities, and ignore all the other noise.

Berkshire manager told the Washington Post he made all of his money by investing in publicly available securities, suggesting anyone can do it with the right approach.

Buffett was a beneficiary of an early start. Since he was 11 he has been putting his money into equities. If you don't have the early start advantage in front of you, you can always back the guys who are arguably the best to ever do it by buying shares of Berkshire Hathaway. The fund has historically outperformed the S&P 500.

Check this out: Former Hedge Fund Manager Lists 3 Reasons Berkshire Hathaway Has 'Everything We Look For In A Stock