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Summary | 12 Annotations
investing like Warren Buffett isn’t easy, and an examination of Berkshire’s holdings indicates that average investors might not necessarily benefit by following his every move.
2016/09/29 01:53
He has access to different types of investments (preferred stock, venture capital) that are often unavailable to non-wealthy people.
2016/09/29 03:30
More than half of the company’s value is tied up in its stakes of Kraft, Coca-Cola, Wells Fargo, and IBM. Nearly 40% of Berkshire’s portfolio stems from the consumer staples sector, while another 30% is tied up in financials.
2016/09/29 03:31
He Sometimes Invests With His Heart, Not His Head
2016/09/29 03:33
He’s Missed Out on Technology
2016/09/29 03:33
When tech took off in the 1990s, Warren Buffett was not on board. No big investments in Microsoft, Apple, or Cisco.
2016/09/29 03:33
Buffett has said he hasn’t invested in tech because he doesn’t understand it. While it’s wise to avoid investing in something you don’t understand, it also means he’s missed out on some big gains over the years.
2016/09/29 03:34
You’re Better Off With Mutual Funds and ETFs
2016/09/29 03:34
Warren Buffett is a great stock picker
2016/09/29 03:35
But for most people, it’s foolish to try to invest in individual companies and expect to beat the broader stock market.
2016/09/29 03:35
Mutual funds and exchange-traded funds offer the ability to invest in the broader stock market
2016/09/29 03:35
Berkshire Hathaway’s investment motives, however, are far more complex. While it is focused on building wealth over the long-term, it also makes decisions to please its shareholders in the short-term. It makes acquisitions that don’t make sense immediately, but have a broader strategic valu
2016/09/29 03:37