If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. Known for his long buy and hold strategies, and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the entire world.
One of the reasons for Berkshire Hathaway’s stunning success over the years is that Warren Buffett and his right hand man Charlie Munger have always tried to stay with stock ideas they understand, and that has proved to be a winning strategy. In addition, many of the companies in their portfolio pay solid and reliable dividends.
Longtime investors and Buffett mavens are familiar with his quote that “His favorite holding for an S&P 500 stock is forever,” so it’s not really surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, that five top companies make up almost 75% of the fund’s total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years, and likely will continue in the future.
All five of these top companies are rated Buy, and all pay reliable dividends. With that noted, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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