Warren Buffett has generated amazing returns for his investors over the years.
Since taking over Berkshire Hathaway in 1965, it has posted annual profits of 20 percent. That’s twice as much as the S&P 500 at the time.
This was achieved on the advice of his later partner Charlie Munger.
In the 1970s, he told Buffett to buy “wonderful businesses bought at fair prices,” rather than buying a company that looked cheap.
Over the years, these have been Apple, Bank of America, American Express, Coca Cola, Occidental and Chevron.
And they appear in Berkshire’s portfolio as equity investments when parts of companies are purchased, as is the case with Apple.
Or they appear as wholly owned subsidiaries in the Berkshire conglomerate when he owns the entire company, like Geico.
Warren Buffett’s biggest stock purchase this year didn’t appear in his portfolio, because he was actually the one who bought shares of his own company, Berkshire Hathaway.
Other investors, large and small, are watching his movements closely for clues.
As with all large institutional investors (such as hedge funds and banks), Berkshire must disclose each quarter what they have bought and sold.
Their rivals, as well as the small retail investors who manage their 401(K) plans, are closely watching their moves for clues.
In fact, Buffett made some big moves last quarter. He sold some of Apple and bought a $6.7 billion stake in Chubb. He also increased his already large stakes in Occidental and LIberty Media.
News of its investment in Chubb sent the security company’s stock soaring: 8 percent in a matter of minutes.
But two big purchases from the Oracle of Omaha didn’t show up. It takes a little detective work to review the earnings report.
Buffett bought more of his favorite stocks. In fact, it’s one he has purchased over the past 23 quarters spanning six years.
From January to March, he bought back $2.6 billion worth of shares in his own company: Berkshire Hathaway shares. That’s more than he spent on anyone else.
The stock is currently trading near an all-time high, meaning Buffett’s decision to buy Berkshire Hathaway stock has paid off for shareholders.
Apple is usually Buffett’s biggest investment, but it is no longer. Another asset has recently taken the top spot.
Berkshire owns $189 billion in cash and Treasury bills, compared to its Apple stake of $150 billion.
Berkshire Hathaway invests in various companies
Warren Buffett, pictured 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 maturing within a year, are where Buffett parks cash out while searching for good deals or stock investments.
Meanwhile, Buffett once revealed the surprising secret to success.
“The difference between successful people and really successful people is that really successful people say no to almost everything,” Buffett said.
The Berkshire Hathaway boss has a net worth of $135 billion and is one of the most successful entrepreneurs 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 the most of limited time.
Saying no tactfully is difficult. Click here for a guide on how to do this.