Billionaire investor Warren Buffett purchased another multimillion-dollar company to add to his holdings in mid February. Joining Buffett’s portfolio with the likes of Coca-Cola and Wells Fargo is none other than the ketchup giant H.J. Heinz Company. The $23-billion deal that swallowed the 144-year-old company is one of the largest food industry acquisitions ever.
Buffett consistently produces above-average returns on his investments, this is a fact. However, there are plenty of investors who consistently produce bigger returns than Buffett. So what makes Buffett so much more well-known than these other investors?
Buffett has stated multiple times that he is extremely concerned with his public image, which is why he remains so admired. Most other investors prefer to keep a low profile, but by willingly stepping into the limelight, Buffett earns greater respect and trust from other investors and the public. His biography, The Snowball, is Amazon.com’s top-selling biography.
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Warren Buffett
When Buffett was diagnosed with Stage 1 prostate cancer, he was the first to break the news to outlets, despite the adverse effect this might have on his stocks. However, by his apparent transparency with his diagnosis, Buffett effectively assured his stakeholders there was nothing to fear and even gained greater influence.
Buffett takes extreme risks by willingly living in the public eye, his stocks can take a dive if he makes a wrong move, but likewise they could also skyrocket. These risks have definitely paid off for this investment giant as his stocks continue to enjoy high returns and a great deal of confidence from his followers.
Obviously, Buffett’s strategy paid off. However, do you think you would suggest this transparent PR to other big investors? What other transparent PR plans have worked successfully?