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According to Motley Fool, Mr Buffett has been the beneficiary of outstanding returns by purchasing undervalued shares in great companies such as Gillette, GEICO and Nike.
In the words of Mr Buffett himself: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Between 1980 and 2003, the stock portfolio of Berkshire Hathaway - Mr Buffett's investment vehicle - outperformed the S&P 500 index in 20 out of 24 years, with annual returns exceeding those of the index by an average of 12 points.
John Reeves, writing for Motley Fool, said that beginner investors "need to develop their skills in identifying profitable companies and determining intrinsic values before they'll be able to capture Buffett-like returns".
Warren Buffett is the richest man in the world and widely regarded as one of the most successful investors of all time.
