How to Invest in Warren Buffet's Stocks
Stock market analysts agree that Warren Buffett is a skillful investor. His Berkshire Hathaway portfolio of stocks has netted substantial earnings for him since he started investing. His portfolio is not a secret. You can start investing your way to wealth by using all or some of Warren Buffett’s best stock picks and strategies.
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Instructions
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Visit the Berkshire Hathaway website links to the company’s earnings press releases and SEC filings. Between 1965 and 2006, his portfolio’s compounded annual average return rate was 21.4 percent, compared to the market’s 11 percent historical average.
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Get the list of all the stocks held by Berkshire Hathaway. See the names and stock symbols of companies in his current holdings at Warren Buffett Portfolio. He owns shares in companies that range from blue chip and Standard and Poor 500 picks like Wells Fargo, Coca-Cola and UPS to relatively unknown and unproven companies.
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Take note of the percentage of his investment in each company’s stock. The top ten companies account for over 80 percent of his earnings. Find the current selling price of each stock on Warren Buffett’s list by clicking on its symbol on the website.
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Use the Warren Buffett Portfolio site links to read comments by Jim Cramer about each stock. Cramer updates this information frequently on Mad Money Recap, citing market changes that could affect the stock's potential value. Compare these comments to the opinions of other trusted sites like Motley Fool.
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Research the historical gain and current earnings of each stock. Check information about the timing of Buffett’s purchases and sales. Investigate the price of a share of Berkshire Hathaway stock if you prefer to invest in his stocks indirectly.
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Open an investment account with a reputable brokerage. Check online brokers and share builder services that make it possible to buy stock incrementally with monthly payments.
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Bypass brokers to save money. Several of the companies in Buffett's portfolio offer direct investment accounts. Direct Stock Purchase Plans (DSPs) give investors the option to buy stocks directly from the company. Dividend Reinvestment Plans (DRIPs) allow shareholders to reinvest dividends to purchase additional fractional shares.
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Study the strategy that earned Buffett his reputation as a perceptive investor. Know what he does when stock prices rise or fall. Over time, some stocks have performed better than others have. Berkshire’s star performers have offset Buffett’s losses. His advice is worth reading repeatedly and taping to the wall.
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Tips & Warnings
The New York Stock Exchange symbols for Buffett’s company are BRK-A and BRK-B.
DSPs and DRIPs are handy for higher priced stock offerings.
Make your own judgment about Buffett’s investment strategy and the health of his portfolio.
Remember that your results may be different. Buffett has accumulated his stock over a long period. The price that he paid may not be today’s price, and the economic factors that affect each stock’s performance may have changed.
