Actualis



May 2010
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What Buffett likes at the investment buffet

Warren Buffett is recognized as one of the most brilliant – and wealthiest – investors of all time. So what does he have in his portfolio?

A few weeks ago, Berkshire Hathaway, whose CEO is the legendary 79-year-old Warren Buffett, held its Annual General Meeting in Omaha, Nebraska. What a great opportunity for “ordinary” investors like us to see where an extraordinary investor puts his money!

Here is a list of Berkshire Hathaway’s 10 biggest stock holdings at the end of the last fiscal year:

Main Companies

Berkshire Hathaway also holds stock in private corporations, such as GEICO (insurance) and Benjamin Moore (paints). And it has invested heavily in rail transportation by acquiring Burlington Northern Santa Fe.

And with his pocket money, he buys…

Of course Mr. Buffett also has a personal investment portfolio worth about $2 billion. Where does he put this “spare change"? Basically, in only 10 stocks, two of which aren’t in the Berkshire Hathaway portfolio: General Electric and Ingersoll-Rand (manufacturing). Yes, the man they call the Oracle of Omaha invests all his money in American companies.

Obviously, we’d all love to base our portfolios on Warren Buffet’s. But that’s no mean feat! How exactly do you go about imitating a manager who, by himself, owns 12% of a giant like American Express? And even if you could, there’s no guarantee of success, or even peace of mind. Would you really like to own shares in Goldman Sachs, the company at the heart of the recent financial crisis?

That said, it’s always fun to see whether the fund managers to whom we entrust our savings make any of the same choices as investors like Warren Buffett. All you have to do is sit down with your financial services professional and go over the annual reports of the fund companies in your portfolio.

Anything tasty at your buffet?



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