How to Invest Better Than Warren Buffet

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Warren Buffet

Warren Buffet is one of the icons of modern investing. His Berkshire Hathaway stock has increased exponentially in value over the years--and millions of investors have sought to mimic his success. In this article I will show you how you can not only imitate, but even surpass the returns his stock has earned.

Things You'll Need

  • Money to invest
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Instructions

    • 1

      Avoid the major current shortcoming in Berkshire Hathaway stock by avoiding financial stocks. Buffet's stock currently has major holdings in financials, which are taking a terrible beating right now.

    • 2

      Focus instead on other holdings, but look to buy common shares that anyone can buy. Berkshire Hathaway bought some blocs of shares on a privately negotiated basis, meaning that they paid below market rates for the stock.

    • 3

      Look to stocks like Coca Cola, Eaton, Kraft Foods and Conoco-Phillips. These stocks are currently undervalued and posting decent earnings. Burlington Northern-Santa Fe is another holding that should be evaluated. These stocks are expected to grow slowly over the next year or two, so there's no hurry.

    • 4

      Log on to Berkshire Hathaway's website to view other holdings the stock owns. Look for undervalued companies like the ones listed above that aren't financial companies.

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