Here at the Warren Buffett Stock Picks site, it might be surprising to note that we do not actively list Buffett’s stock portfolio. Those can be found all around the Internet. Sure, we might single out a particular Buffett stock and analyse what qualities the company has to attract the attention of the world’s best investor. However, the bottom line is that it is better to learn how to identify future stock winners for your long term investments portfolio than to put it in someone else’s hands.
Speaking of investing for yourself, as sad as it is to admit, there is only one Warren Buffett and he isn’t getting any younger. Buffett’s successor has not been named and Buffett himself has always admitted that Berkshire Hathaway has gotten so big that it’s hard maintain the 45 years averaging 20% returns per year. As Buffett explained one time: “It’s much bigger than it used to be, and with the law of large numbers it takes a bigger investment to move the needle”. How will Berkshire Hathaway perform without the mastermind at the helm and with Berkshire becoming such a behemoth?
With the stock split of Berkshire baby stocks to more affordable levels to the average investor, is the stock still a good buy? Some would say that Berkshire is becoming more of a defensive play with its investment in railroads and utilities which can hardly be qualified as growth stock picks. However, let’s look at the number one rule of invest: never lose your money. This rule is reinforced by the second rule which is to never forget the first rule.
Buffett’s investment strategy has definitely changed throughout the years. This is normal as one gets older and wiser but the stock advice never changes. That is, to invest in good companies for the long term.
- At first, Buffett was buying cheap stocks of undervalued companies. He learned value investing from Benjamin Graham.
- Then he started investing in growth companies based on what he learned from Philip Fisher. For this, sometimes you have to pay good companies what they are worth. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”.
- And now the latest trend for Buffett is to buy stable blue chip stocks whose reach will be still felt for years to come even after Buffett is long gone but the legacy of stock portfolio will remain.
Think about that for a minute when the norm nowadays is to make quick money with day trading. Compare this with Buffett’s portfolio and how he made his billions by looking into the future.
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