๐๐งต A look into Warren Buffett's portfolio
Warren Buffett is one of the best investors in the world.
Since Buffett took over Berkshire Hathaway in 1965, the stock compounded at 20% per year.
This means an investment of $10.000 would grow to more than $800 million (!).
Warren Buffett is one of the best investors in the world.
Since Buffett took over Berkshire Hathaway in 1965, the stock compounded at 20% per year.
This means an investment of $10.000 would grow to more than $800 million (!).
Today, Buffett's net worth is equal to roughly $108 billion.
More than 95% of this wealth was created after his 65th birthday.
Compounding can be beautiful.
More than 95% of this wealth was created after his 65th birthday.
Compounding can be beautiful.
One of the key criteria for Buffett's success?
Berskhire Hathaway's low cost structure.
Berskhire Hathaway's low cost structure.
When Buffett would have managed Berkshire Hathaway as a hedge fund (2% ongoing charges and a performance fee of 20%), an investment of $1000 would have grown to $300k over 45 years.
However, without those fees, your investment would be worth $4.3 million!
However, without those fees, your investment would be worth $4.3 million!
Now let's take a look at Buffett's portfolio.
In this video, you can see how Berkshire Hathaway evolved over the years:
In this video, you can see how Berkshire Hathaway evolved over the years:
Here you can see Buffett's current portfolio:
Now let's take a look at Buffett's top positions.
Top 5 positions of Berkshire Hathaway:
1. Apple (41.8%)
2. Bank of America (10.3%)
3. Chevron (8.0%))
3. Coca-Cola (7.6%)
5. American Express (6.9%)
Top 5 positions of Berkshire Hathaway:
1. Apple (41.8%)
2. Bank of America (10.3%)
3. Chevron (8.0%))
3. Coca-Cola (7.6%)
5. American Express (6.9%)
1. Apple (weight: 41.8%)
18% of all new phones sold in the world, are iPhones.
In 2018, Buffett stated that Apple earns almost twice as much as the second-most profitable company in the United States.
This clearly underlines Apple's strong competitive advantage.
18% of all new phones sold in the world, are iPhones.
In 2018, Buffett stated that Apple earns almost twice as much as the second-most profitable company in the United States.
This clearly underlines Apple's strong competitive advantage.
2. Bank of America (weight: 10.3%)
Bank of America is Warren Buffett's favorite bank.
In 2011, Buffett plowed $5 billion into Bank of America at very favorable conditions helping $BAC during the US debt crisis.
Bank of America is Warren Buffett's favorite bank.
In 2011, Buffett plowed $5 billion into Bank of America at very favorable conditions helping $BAC during the US debt crisis.
3. Chevron (weight: 8.0%)
Buffett bought Chevron as a play on increasing energy prices.
Over the past months, Berkshire Hathaway has also been buying into Occidental Petroleum.
Buffett bought Chevron as a play on increasing energy prices.
Over the past months, Berkshire Hathaway has also been buying into Occidental Petroleum.
4. Coca-Cola (weight: 7.6%)
Before investing in Coca-Cola , Warren Buffett reportedly read 100 years of the company's annual reports.
This shows there is no shortcut to success.
Before investing in Coca-Cola , Warren Buffett reportedly read 100 years of the company's annual reports.
This shows there is no shortcut to success.
Buffett especially loves Coca-Cola due to their strong brand name and huge competitive advantage.
"If you gave me $100 billion and said take away the soft drink leadership of Coca-Cola in the world, I'd give it back to you and say it can't be done." - Warren Buffett
"If you gave me $100 billion and said take away the soft drink leadership of Coca-Cola in the world, I'd give it back to you and say it can't be done." - Warren Buffett
5. American Express (weight: 6.9%)
The most important strength of American Express is their brand.
Customers love to be associated with American express.
Furthermore, credit payments are in a strong secular trend.
The most important strength of American Express is their brand.
Customers love to be associated with American express.
Furthermore, credit payments are in a strong secular trend.
Do you know what these 5 companies have in common?
It all starts with the moat for Warren Buffett.
You want to own companies with very strong brand names.
It all starts with the moat for Warren Buffett.
You want to own companies with very strong brand names.
To help you find these kind of companies, you can use Buffett's investment checklist.
The checklist has 3 parts:
1. Business model
2. Management
3. Financials
The checklist has 3 parts:
1. Business model
2. Management
3. Financials
1. The business model:
2. Management:
3. Financials:
Now let's go to Buffett's view on today's market environment.
2022 has been a difficult year for the stock market.
You should be greedy when others are fearful, and fearful when others are greedy.
Today is the day to start to become more greedy again.
2022 has been a difficult year for the stock market.
You should be greedy when others are fearful, and fearful when others are greedy.
Today is the day to start to become more greedy again.
Here you can read how Buffett thinks about stock market crashes.
Bear markets can offer great opportunities.
Bear markets can offer great opportunities.
The end.
Here you can find all shareholders letters of Buffett mapped in 1 PDF for free:
qualitycompounding.substack.com
Here you can find all shareholders letters of Buffett mapped in 1 PDF for free:
qualitycompounding.substack.com
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