Warren Buffett is one of the greatest and most respected investors of all time. Most investors would like to emulate Buffett’s investing style in their portfolios, which is not easy, but we can certainly learn from his strategies.
Berkshire Hathaway (BRK.A) recently reported excellent earnings, sending its class A shares to an all-time high. The stock has increased in value by more than 25,000 times since Buffett took control of the company in 1965, according to Barron’s.
The legendary investor favors companies with “economic moats,” which are like “economic castles protected by unbreachable moats.” In simple terms, a moat is a unique competitive advantage that enables a company to outperform others in the same industry over time.
The VanEck Morningstar Wide Moat ETF MOAT invests in attractively priced companies with sustainable competitive advantages. Domino’s Pizza DPZ and Alphabet GOOG are among the top holdings in the fund.
In the past, Buffett invested in undervalued companies with great potential, which he called “cigar butts.” However, his thinking later evolved to “it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
The SPDR MSCI USA StrategicFactors ETF (QUS) aims to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations. Apple AAPL, Microsoft MSFT and Nvidia NVDA are among the current holdings.
Buffett has long recommended that most investors should stick with low-cost index funds. The iShares Core S&P 500 ETF IVV and Vanguard S&P 500 ETF VOO charge just 0.03% each, but SPDR Portfolio S&P 500 ETF SPLG‘s new fee of 0.02% makes it the cheapest in the space.
Alphabet Inc. (GOOG): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Domino’s Pizza Inc (DPZ): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports
To read this article on Zacks.com click here.
This article originally appeared on Zacks
Top Gaining Stocks
Top Losing Stocks