Warren Buffett has produced astonishing returns for his investors over the years.
Since taking over Berkshire Hathaway in 1965, he has returned 20 percent annual gains. That is double that of the S&P 500 in that time.
That been achieved by following the advice of his later partner Charlie Munger.
Back in the 1970s, he told Buffett buy ‘wonderful businesses purchased at fair prices’ – rather than buying a company that seemed cheap.
Along the years, these have been Apple, Bank of America, American Express, Coca Cola, Occidental and Chevron.
And they show up in Berkshire’s portfolio as equity investments when buying parts of companies, as is the case with Apple.
Or they appear as wholly owned subsidiaries in the Berkshire conglomerate when he owns the whole company, such as Geico.
Warren Buffett’s biggest stock purchase this year did not show up in his portfolio – because it was actually him buying up shares in his own company, Berkshire Hathaway
Other investors – big and small – closely watch his moves for clues.
As with all big institutional investors – like hedge funds and banks – Berkshire must reveal each quarter what they have bought and sold.
Rivals – plus smaller retailer investors managing their 401(K)s – closely watch his moves for clues.
In fact, Buffett made some big moves last quarter. He sold some Apple and bought a $6.7billion stake in Chubb. He also added to his already big stakes in Occidental and LIberty Media.
News of his investment in Chubb sent shares of the security company soaring – up 8 percent in minutes.
But two big purchases by the Oracle of Omaha didn’t show up. It takes some detective work rooting through the earnings report.
Buffett purchased more of his favorite stocks. In fact, it is one he has bought in all of the last 23 quarters spanning back six years.
For January to March he bought back $2.6 billion worth of shares in his own company – Berkshire Hathaway shares. That is more than he spent on any other.
Shares are currently trading near an all-time high- meaning Buffett’s decision to buy Berkshire Hathaway stock has paid off for shareholders.
Apple is often as Buffett’s largest investment – but it is not anymore. Another asset has recently taken the top spot.
Berkshire holds $189 billion in cash and Treasury bills, compared to its $150 billion Apple stake.
Berkshire Hathaway invests in a range of companies
Warren Buffett, photographed here in 2019, advises people to say no. Experts say the advice is relevant at work and home too
Treasury bills, which are US government bonds maturing within one year, are where Buffett’s parks cash while searching for good business or stock investments.
Meanwhile, Buffett once revealed his surprising secret to success.
‘The difference between successful people and really successful people is that really successful people say no to almost everything,’ Buffett famously said.
The Berkshire Hathaway boss has a net worth of $135 billion and is one of the most successful businessmen and investors of all time.
A key to his success is his ability to prioritize and use his time wisely – and that is the background to the seemingly controversial quote.
But being able to say ‘no’ to people and opportunities that don’t directly benefit personal or professional growth is the best way to make use of limited time.
Saying no tactfully is tricky. Click here for a guide on how to do it.
