Berkshire Hathaway Inc. ((BRK.A)) has been receiving a lot of press lately, as CEO and billionaire investor Warren Buffet has been negotiating favorable terms for deals with companies including Constellation Energy Holding Inc (CEG: 24.21, 0.00 (0.00%)), Goldman Sachs Group Inc (GS: 92.50, 0.00 (0.00%)), and General Electric Co (GE: 19.51, 0.00 (0.00%)).  Many investors are wondering if they should follow Buffett’s lead and return to investing in equities, but the answer is not so simple.  Even though he is one of the world’s greatest investors, it is not always necessarily prudent for individual investors to mimic his investing decisions. However, his investing expertise has undoubtedly led to the success of Berkshire Hathaway and his acquisition strategy has resulted in  consistent growth of the company’s operating businesses.

A Legendary Investor

Buffett is a master of acquisitions that create shareholder value rather than destroy it. He seeks to acquire businesses that are simple and easy to understand, with strong management and a good price, while typically avoiding industries prone to rapid and continuous change.  Buffett’s investing savvy has undoubtedly led the firm to increase book value from $19 to over $78,000 in the last 43 years, a rate of 21.1% compounded annually.