REVEALED: The huge stock purchase this year by Warren Buffett that didn’t show up in his portfolio
Warren Buffett has delivered astonishing returns for his investors over the years.
Since taking over Berkshire Hathaway in 1965, he has posted annual profits of 20 percent. That’s double that of the S&P 500 at that time.
This was achieved by following the advice of his later partner Charlie Munger.
In the 1970s, he told Buffett to buy “great companies bought at fair prices” – instead of buying a company that seemed cheap.
Over the years these have included Apple, Bank of America, American Express, Coca Cola, Occidental and Chevron.
And they show up in Berkshire’s portfolio as stock investments when buying parts of companies, as is the case with Apple.
Or they appear as wholly owned subsidiaries in Berkshire’s conglomerate while he owns the entire company, like Geico.
Warren Buffett’s largest stock purchase this year did not appear in his portfolio, because it was he who bought shares in his own company, Berkshire Hathaway
Other investors – big and small – are watching his moves closely for clues.
As with all large institutional investors – such as hedge funds and banks – Berkshire must disclose what it has bought and sold every quarter.
Rivals — plus smaller retail investors who manage their 401(K)s — are watching his moves closely for clues.
Buffett even made some big moves last quarter. He sold some Apple and bought a $6.7 billion stake in Chubb. He also expanded his already large holdings in Occidental and LIberty Media.
News of his investment in Chubb sent the security company’s shares soaring, rising 8 percent in minutes.
But two major purchases by the Oracle of Omaha failed to materialize. It takes some detective work to sift through the earnings report.
Buffett bought more of his favorite stocks. In fact, it’s one he’s bought in the last 23 quarters of six years.
From January to March, he bought back $2.6 billion worth of stock in his own company: Berkshire Hathaway stock. That’s more than he’s spent on any other.
Shares are currently trading around an all-time high. This means that Buffett’s decision to buy shares of Berkshire Hathaway has paid off for shareholders.
Apple is often Buffett’s biggest investment, but it isn’t anymore. Another asset recently took the top spot.
Berkshire owns $189 billion in cash and government bonds, compared to its $150 billion stake in Apple.
Berkshire Hathaway invests in a range of companies
Warren Buffett, photographed here in 2019, advises people to say no. Experts say the advice is also relevant at work and at home
Treasury bills, which are U.S. government bonds that mature within one year, are where Buffett’s cash parks as he looks 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 once 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 apparently 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 difficult. Click here for a guide on how to do this.