Is it true that Warren Buffett would average 50% annualized returns if he had less than 1 million dollars to invest?
Warren had various strategies that enhanced his business. The plans include investing in what he understands, buying the entire company investments, and finding quality companies. Others are sticking with long-term value investing strategies, compounding, and patience
Warren mostly used to spend a considerable amount of money because he saw more investment opportunities on such massive amounts. If he can make 10-30% after investing $ 20B for few small investment deals of one million dollars, he can get good returns. He would concentrate more on many potential investments to earn more. There is no doubt that Warren can double the placement of one million dollars annually.
Even if Warren did not go for the highest risk investments, it is possible to make huge profits by use of his strategies. It is thus possible for him to make 50% every year on $ 1m and the returns without any struggles. For Warren, after a few years, $1 M investment becomes $10M due to his robust investment plans. However, Buffet stays away from small-cap stocks despite their high potential for more returns. He does not want to make a run-up in the price of a small-cap stock and also doesn’t want to control the stake.