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Lessons From Warren Buffett

Lessons From Warren Buffett: The Power of Flexibility

While many mutual funds and ETFs focus on specific market segments, Warren Buffett takes a different approach. He prioritizes flexibility, ensuring that investment decisions are driven by opportunity rather than restrictions.

At the 2007 Berkshire Hathaway Annual Meeting, Buffett explained his stance:

“We think the most logical fund is the one we have at Berkshire where, essentially, we can do anything that makes sense and are not compelled to do anything that we don’t think makes sense.”

Buffett believes that funds limited to a specific asset class, such as bonds or futures, operate at a disadvantage compared to those with broad authority—provided they have the right leadership. By maintaining an open investment strategy, Buffett ensures that Berkshire Hathaway can capitalize on the best opportunities across all financial markets, rather than being confined to any single category.

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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