Warren Buffett:

Takeaways from a stellar 50-year track record

What comes to mind when you hear the name Warren Buffett - investor, mutual fund manager, CEO, entrepreneur, stock picker, philanthropist, or billionaire? Or maybe something else comes to mind? Whatever you think, one thing is clear: he has made a lot of money investing over the years.

If you're counting, Forbes' 2015 ranking places his net worth at $72.7 billion, which makes him the third wealthiest person in the world behind Mexican telecom king Carlos Helu ($77.1 billion), and Bill Gates ($79.2 billion).

Buffett's success over the last 50 years undoubtedly enhances his credibility, and when I think of Warren Buffett, "patience" and "value investor" are among my first thoughts.

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price," Buffett once remarked.

"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes," he has advised. That compliments another one of his quips, "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."

He sure seems to have mastered the art of patience, eschewing worries about the daily twists and turns in the market in favor of the long term.

Now, there will be times when we make specific buy or sell recommendations regarding various investments, some of which may have to do with economic fundamentals or your personal situation.

Still, his "forever" philosophy is a guideline that beckons us to be patient investors, keeping our eyes on the long-term prize.

In some respects, his accumulated comments might add up to something akin to a Book of Proverbs for investing. There generally aren't hard and fast rules that apply to every situation, but a focus on the fundamentals has typically proven to be among the wiser paths one can take.

Just review Buffett's long-term performance. Since today's management took charge at Berkshire in 1964, he's averaged a 21.6% compounded annual gain, or an astounding 1,826,163% in 50 years, according to the most recent letter he released to shareholders.  That compares to a 9.9% annual rise in the S&P 500 Index, inclusive of dividends, or 11,196% during the same period.

Of course, we aren't implying that we should be expecting the same returns that Warren Buffet has achieved.  In fact, most individuals are not able to assume the amount of risk that would come with a portfolio designed to meet or exceed the S&P 500.  That said, a broadly diversified portfolio correlated to a person's or family's specific goals can provide strong results, manage risk better and if needed, provide a more consistent stream of income.

While we'll see setbacks from time to time, the economy continues to plow forward, supporting corporate earnings and rewarding investors who practice patience.