Warren Buffett is widely recognized as one of the best overall investors in America.
Buffett’s company Berkshire Hathaway routinely out performs leading indices. Berkshire is a conglomerate. That was a term that had a bad connotation in the 1980’s, but this is not the case with Berkshire. They are major stock holders in companies such as Coca-Cola, Citigroup, Chevron Apple and Kraft Heinz. In addition, they own outright many companies including Fruit of the Loom, Duracell, Dairy Queen, Pilot Truck Stops and Benjamin Moore Paint.
Berkshire will only purchase companies that are industry leaders, successful and can be bought for a fair price. Warren does not believe in overpaying for anything. He has a huge amount of cash on hand and can invest in anything that interests him. He does not pay dividends or buy back lots of shares of his company. He also does not believe in stock spits to reduce share prices. If you want to buy one A-share of Berkshire stock, you need about $615,000.
Buffett recently sent his yearly letter to stockholders, which is a widely anticipated annual event. In this year’s letter, Buffett talks about his sister, Bertie. She is a savvy, long-term investor in Berkshire. She has some knowledge, but no formal training. Warren says, “A major asset for Bertie and investors like her: are sensible, instinctively knowing that pundits should always be ignored. After all, if she could reliably predict tomorrow’s winners, would she freely share her valuable insights and thereby increase completive buying? That would be like finding gold and then handing a map to the neighbors showing its location.”
This is Warren’s way of saying be careful of all the people pitching investments that are supposed to make you rich.
Buffett is a long-term investor who does not believe anyone can time the market consistently. He stays invested and has a long-term focus. He believes portfolios should be spread over many investments. This eliminates the chance…
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