The Dutch location gives it prime access to markets in the United Kingdom and Germany, with the Port of Rotterdam being the largest port in Europe. Other important parts of the economy are international trade, banking and transport. The Netherlands successfully addressed the issue of public finances and stagnating job growth long before its European partners. Amsterdam is the 5th-busiest tourist destination in Europe, with more than 4.2 million international visitors.[184] Since the enlargement of the EU, large numbers of migrant workers have arrived in the Netherlands from Central and Eastern Europe.[185]

The Netherlands continues to be one of the leading European nations for attracting foreign direct investment and is one of the five largest investors in the United States. The economy experienced a slowdown in 2005, but in 2006 recovered to the fastest pace in six years on the back of increased exports and strong investment. The pace of job growth reached 10-year highs in 2007. The Netherlands is the fourth-most competitive economy in the world, according to the World Economic Forum's Global Competitiveness Report.[186]

Since the 16th century, shipping, fishing, agriculture, trade, and banking have been leading sectors of the Dutch economy. The Netherlands has a high level of economic freedom. The Netherlands is one of the top countries in the Global Enabling Trade Report (2nd in 2016), and was ranked the fifth most competitive economy in the world by the Swiss International Institute for Management Development in 2017.[173] The country was ranked the 7th most innovative nation in the world in the 2023 Global Innovation Index down from 2nd in 2018.[174][175]

As of 2020, the key trading partners of the Netherlands were Germany, Belgium, the United Kingdom, the United States, France, Italy, China and Russia.[6] The Netherlands is one of the world's 10 leading exporting countries. Foodstuffs form the largest industrial sector. Other major industries include chemicals, metallurgy, machinery, electrical goods, trade, services and tourism. Examples of international Dutch companies operating in the Netherlands include Randstad, Heineken, KLM, financial services (ING, ABN AMRO, Rabobank), chemicals (DSM, AKZO), petroleum refining (Royal Dutch Shell), electronic machinery (Philips, ASML), and satellite navigation (TomTom).

The Netherlands has the 17th-largest economy in the world, and ranks 11th in GDP (nominal) per capita. The Netherlands has low income inequality, but wealth inequality is relatively high.[176] Despite ranking 11th in GDP per capita, UNICEF ranked the Netherlands 1st in child well-being in rich countries, both in 2007 and in 2013.[177][178][179]

Amsterdam is the financial and business capital of the Netherlands.[180] The Amsterdam Stock Exchange (AEX), part of Euronext, is the world's oldest stock exchange and is one of Europe's largest bourses. As a founding member of the euro, the Netherlands replaced (for accounting purposes) its former currency, the "gulden" (guilder), on 1 January 1999. Actual euro coins and banknotes followed on 1 January 2002. One euro was equivalent to 2.20371 Dutch guilders. In the Caribbean Netherlands, the United States dollar is used instead.[181] The Netherlands is a "conduit country" that helps to funnel profits from high-tax countries to tax havens.[182] It has been ranked as the 4th largest tax haven in the world.[183]

Beginning in the 1950s, the Netherlands discovered huge natural gas resources. The sale of natural gas generated enormous revenues for the Netherlands for decades, adding, over sixty years, hundreds of billions of euros to the government's budget.[188] However, the unforeseen consequences of the country's huge energy wealth impacted the competitiveness of other sectors of the economy, leading to the theory of Dutch disease.[188] The field is operated by government-owned Gasunie and output is jointly exploited by the government, Royal Dutch Shell, and ExxonMobil. Gas production caused earthquakes which damaged housing. After a large public backlash, the government decided to phase out gas production from the field.[189]

The Netherlands has made notable progress in its transition to a carbon-neutral economy. Thanks to increasing energy efficiency, energy demand shows signs of decoupling from economic growth. The share of energy from renewable sources doubled from 2008 to 2019, with especially strong growth in offshore wind and rooftop solar. However, the Netherlands remains heavily reliant on fossil fuels and has a concentration of energy- and emission-intensive industries that will not be easy to decarbonise. Its 2019 Climate Agreement defines policies and measures to support the achievement of Dutch climate targets and was developed through a collaborative process involving parties from across Dutch society.[190] As of 2018, the Netherlands had one of the highest rates of carbon dioxide emissions per person in the European Union.[191]

The Netherlands' biocapacity totals only 0.8 global hectares per person in 2016, 0.2 of which are dedicated to agriculture.[192] The Dutch biocapacity per person is just about half of the 1.6 global hectares of biocapacity per person available worldwide.[193] In contrast, in 2016, the Dutch used on average 4.8 global hectares of biocapacity - their ecological footprint of consumption. As a result, the Netherlands was running a biocapacity deficit of 4.0 global hectares per person in 2016.[192] The Dutch waste more food than any other EU citizen, at over three times the EU average.[194]

The Dutch agricultural sector is highly mechanised, and has a strong focus on international exports. It employs about 4% of the Dutch labour force but produces large surpluses in the food-processing industry and accounts for 21% of the Dutch total export value.[195] The Dutch rank first in the European Union and second worldwide in value of agricultural exports, behind only the United States,[196] with agricultural exports earning €80.7 billion in 2014,[197] up from €75.4 billion in 2012.[24] In 2019 agricultural exports were worth €94.5 billion.[198] In an effort to reduce agricultural pollution, the Dutch government is imposing strict limits on the productivity of the farming sector, triggering Dutch farmers' protests.[199]

One-third of the world's exports of chilis, tomatoes, and cucumbers go through the country. The Netherlands exports one-fifteenth of the world's apples.[200] A significant portion of Dutch agricultural exports consists of fresh-cut plants, flowers, and flower bulbs, with the Netherlands exporting two-thirds of the world's total.[200]

His contributions spanned numerous fields, primarily fundamental value investing.

Graham is considered the "father of value investing,"[3] and his two books, Security Analysis and The Intelligent Investor, defined his investment philosophy, especially what it means to be a value investor. His most famous student is Warren Buffett, who is consistently ranked among the wealthiest persons in the world.[33] According to Buffett, Graham used to say that he wished every day to do something foolish, something creative, and something generous.[34] And Buffett noted, Graham excelled most at the last.[35]

While many value investors have been influenced by Graham, his most notable investing disciples include Charles Brandes, William J. Ruane, Irving Kahn and Walter J. Schloss. In addition, Graham's thoughts on investing have influenced hedge-fund managers Seth Klarman, Bill Ackman and Nancy Zimmerman.[36][37] While some of Graham's investing concepts are now regarded as superseded or outdated, most are still recognized as important, and Security Analysis or The Intelligent Investor are required reading for new hires at many investment firms around the world.[10]

Graham also made contributions to economic theory. Most notably, he proposed a new basis for both U.S. and global currency as an alternative to the gold standard.[38] Graham regarded this currency theory as his most important professional work; it gained renewed attention decades after his death in the aftermath of the 2007–2008 financial crisis.[10]

Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930)[2] is an American businessman, investor, and philanthropist who currently serves as the co-founder, chairman and CEO of Berkshire Hathaway. As a result of his immense investment success,[3][4] Buffett is one of the best-known investors in the world. As of January 2024,[5] he had a net worth of $122 billion, making him the tenth-richest person in the world.[5]

Buffett was born in Omaha, Nebraska. The son of US congressman and businessman Howard Buffett, he developed an interest in business and investing during his youth. He entered the Wharton School of the University of Pennsylvania in 1947 before graduating from the University of Nebraska at 19. He went on to graduate from Columbia Business School, where he molded his investment philosophy around the concept of value investing pioneered by Benjamin Graham. He attended New York Institute of Finance to focus on his economics background and soon pursued a business career. He later began various business ventures and investment partnerships, including one with Graham. He created Buffett Partnership Ltd. in 1956 and his investment firm eventually acquired a textile manufacturing firm, Berkshire Hathaway, assuming its name to create a diversified holding company. Buffett emerged as the company's chairman and majority shareholder in 1970. In 1978, fellow investor and long-time business associate Charlie Munger joined Buffett as vice-chairman.[6][7]

Since 1970, Buffett has presided as the chairman and largest shareholder of Berkshire Hathaway, one of America's foremost holding companies and world's leading corporate conglomerates. He has been referred to as the "Oracle" or "Sage" of Omaha by global media as a result of having accumulated a massive fortune derived from his business and investment success.[8][9] He is noted for his adherence to the principles of value investing, and his frugality despite his vast wealth.[10]

Buffett has pledged to give away 99 percent[11] of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation. He founded the Giving Pledge in 2010 with Bill Gates, whereby billionaires pledge to give away at least half of their fortunes.[12]

Munger moved with his family to California, where he joined the law firm Wright & Garrett (later Musick, Peeler & Garrett).[13] In 1962, he founded and worked as a real estate attorney at Munger, Tolles & Olson LLP.[5] He then gave up the practice of law to concentrate on managing investments and later partnered with Otis Booth in real estate development. When he met Buffett over lunch at the Omaha Club, the two began talking about investments and never stopped.[14] He then partnered with Jack Wheeler to form Wheeler, Munger, and Company, an investment firm with a seat on the Pacific Coast Stock Exchange. He wound up Wheeler, Munger, and Co. in 1976, after losses of 32% in 1973 and 31% in 1974.[5]

Although Munger was better known for his association with Buffett, he ran an investment partnership of his own from 1962 to 1975. According to Buffett's essay "The Superinvestors of Graham-and-Doddsville", published in 1984, Munger's investment partnership generated compound annual returns of 19.8% during the 1962–75 period compared to a 5.0% annual appreciation rate for the Dow.[15]

Munger was previously the chairman of Wesco Financial Corporation, now a wholly-owned subsidiary of Berkshire Hathaway. The acquisition of this company was controversial following accusations that Buffett's company, Blue Chip, bought Wesco shares to defeat an impending merger between Wesco and Financial Corp.[16][17] Wesco began as a savings and loan association, but eventually grew to control Precision Steel Corp., CORT Furniture Leasing, Kansas Bankers Surety Company, and other ventures. Wesco Financial also held a concentrated equity portfolio of over US$1.5 billion in companies such as Coca-Cola, Wells Fargo, Procter & Gamble, Kraft Foods, US Bancorp, and Goldman Sachs. Munger believed that holding a concentrated number of stocks that he knew extremely well would in the long term produce superior returns.[18]

Wesco is based in Pasadena, California, Munger's adopted hometown. Pasadena was also the site of the company's annual shareholders' meeting, which were typically held on the Wednesday or Thursday after the more famous Berkshire Hathaway annual meeting. Munger's meetings were nearly as legendary in the investment community as those he co-hosted with Buffett in Omaha. Such meetings were often perfunctory, but Munger interacted with the other Wesco shareholders at considerable length, sometimes speculating about what Benjamin Franklin would do in a given situation.[19] Meeting notes have been posted on the Futile Finance? website, but no updates exist beyond 2011.[20]

Munger was also the chairman of the Daily Journal Corporation. After Wesco meetings ended, the Daily Journal annual meeting grew in importance, as investors flocked to the meeting to listen to him speak at length.[21]