At the age of 94, Warren Buffett guides Berkshire Hathaway to unprecedented success.

On Friday, Warren Buffett turned 94, and his unique conglomerate has never been worth more than it is currently.

This week, Berkshire Hathaway became the first non-technology company to reach a $1 trillion market capitalization, while its Class A shares hit a record high of $700,000 per share.

According to Howard Marks, a renowned investor and friend of Buffett's, three factors have enabled the "Oracle of Omaha" to guide Berkshire to unprecedented success, despite his age.

"Marks, co-founder and co-chairman of Oaktree Capital Management, stated that his seven-decade strategy has been executed with discipline, consistency, and exceptional insight. While discipline and consistency are crucial, they alone are not enough. It is the unusual insight that sets Marks apart as one of the greatest investors in history."

Marks stated that his record serves as proof of the effectiveness of compounding at a high rate for an extended period, without any interruptions. He never took a break.

In the 1960s, Buffett used his investment partnership to buy a failing textile company named Berkshire Hathaway. Today, his company has diversified into various businesses, including GEICO insurance and BNSF Railway, and has an equity portfolio worth over $300 billion and a cash reserve of $277 billion.

Eye-popping returns

Buffett's shrewd moves have inspired generations of investors to study and imitate his investing style. His bet from the late 1980s taught the value of patient investing in strong brands with wide moats. Injecting a lifeline investment during the financial crisis demonstrated his opportunistic side during crises. Going all in on in recent years showcased his flexibility in adapting his value approach to a new age.

Earlier this month, Buffett announced that he had sold half of his Apple shares, profiting from a successful trade. Despite Apple's reputation as a growth stock, Buffett has always maintained that investing is about finding value.

Since Buffett took over, Berkshire shares have generated a 4,384,748% cumulative gain, compared to the S&P 500's 31,223% return. Over the past 58 years, the stock has generated an annualized gain of 19.8%, nearly double the 10.2% return of the S&P 500.

""Steve Check, founder of Check Capital Management with Berkshire as its biggest holding, said that his most successful investor is the most patient one, who can sit for long periods and wait until he feels comfortable. He believes that this investor will continue to do his best until the end," said Steve Check."

Despite Buffett's decision to step back from some responsibilities, he remains chairman and CEO of Berkshire. Abel, 62, has been entrusted with many of the conglomerate's operations and will make all investing decisions when Buffett is no longer around.

Buffett and Marks

Marks of Oaktree said that Buffett emphasized the importance of his own approach, which involves disregarding macro forecasting and market timing, and instead focusing on finding value while staying within his circle of competence.

Marks stated that he does not pay attention to market timing and trading, but when others become fearful, he takes action. We attempt to mimic his behavior.

At Columbia University, Buffett studied under Benjamin Graham and advises investors to view their stock holdings as small pieces of businesses. He believes that volatility is beneficial to investors as it presents an opportunity to profit from emotional selling.

One of the largest alternative investments players globally, Oaktree specializes in distressed lending and bargain-hunting with $193 billion in assets under management.

Howard Marks, with a score of 78, has emerged as a clear and decisive critic in the investment industry. His investment memos, which he began writing in 1990, are now considered essential reading on Wall Street and have even received praise from Buffett, who said, "When I receive memos from Howard Marks, I always open and read them first, and I always learn something."

In the aftermath of the Enron bankruptcy in the early 2000s, Buffett encouraged Marks to write his own book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, a decade ahead of schedule.

"He was very generous with his comments. I don't think that book would have been written without his inspiration," Marks said. "I had been planning to write a book when I retired. But with his encouragement, the book was published 13 years ago."

Marks was inspired by Buffett's longevity and enjoyment of work in his 90s.

"Marks said that he enjoys skipping to work in the morning and tackles investing with enthusiasm and pleasure. He hopes to never retire, following his example."