The man is Warren Buffett.
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A little-known investor has compared Warren Buffet's track record to that of a little-known investor by pulling from the CEO's playbook: holding stocks for the long term, concentrating his portfolio, keeping costs low, and striking private deals.
The closed-end fund had $34 million in assets under management when Kidd took over. As of September 30 this year, Kidd had grown that figure to over $1 billion, a 38fold increase in 48 years.
Over the past two decades, Central has beaten the S&P 500 index, and over the past 25 years, 30 years, and 40 years, The Wall Street Journal reported. The fund has returned 14.5% with dividends reinvested since Kidd took over, beating the S&P 500's 11.7% return over the same period, according to the Journal.
Kidd's willingness to hold stocks for a long time is what makes him successful. Central spent about $6 million in 1987 for a stake inAnalog Devices that was worth $75 million as of September 30, according to Securities and Exchange Commission filings.
Central owned a piece of Murphy Oil for nearly 45 years, and still holds Intel stock that it first bought in 1986.
Kidd has also followed in the footsteps of Warren Buffet. The most valuable stake in Central is in the unlisted auto and property insurer, Plymouth Rock. The fund only spent $700,000 to establish that position.
Kidd has bet big on his favorite stocks. At the end of September, Central only had 33 holdings, and its 10 biggest positions were worth a combined $755 million. The Rock made up 24%.
Kidd has joined the group of people who minimize costs to maximize gains. The WSJ said that Central's expenses are below average this year.
Kidd told the newspaper that they were in business to make money for stockholders.
Kidd has embraced Buffett's investing strategy and has also spoken about the amount of luck required for success.
Kidd told the Journal that skill is recognizing when you have gotten lucky. He said that the best investors double down when they strike gold, and that they excel at not chickening out.
Business Insider has an original article.
