As you know, we’re always looking for ways to make money in the stock market. There no better feeling than making some money by picking out a winning stock. And if there’s one guy who’s been unbelievable at picking stocks during his life, it’s Warren Buffet. Today we look at Warren Buffet’s stock picks. Visit for best http://www.justfoodco.co.uk/food-warren-mi/
Let’s take a look at Berkshire Hathaways’s (Buffet’s company) top 5 stock holdings. Perhaps you’ll see a common trend amongst these companies:
2) Wells Fargo
3) American Express
4) Proctor & Gamble
5) Kraft Foods
Notice how these are all HUGE names? These certainly aren’t small, upcoming businesses. Rather, they are blue-chip, well established businesses that he’s picked for very specific reasons.
Buffet is a master of “value investing”, which hunts for undervalued stocks. It’s uncommon for people who use this investment method to buy speculative or small stocks as they prefer to invest in companies that are more established.
Another philosophy that Buffet has to is make a pick and stick with it. He’s certainly not a day trader and will buy and hold for lengthy periods of time. Of course he puts in a great deal of time researching and analyzing stocks before he makes a purchase, but once he’s in, he tends to stay committed for some time.
Don’t get me wrong – he will sell a stock if he sees a good reason too. But because he’s typically investing in strong companies that he’s put plenty of time to analyze, it’s highly unlikely that something will change very quickly to make him want to exit the position.
I’m always amazed at how many people think that in order to get rich from stocks you need to constantly be in and out of trades. I’ve seen so many people (including so-called professionals) day trade until all their funds are lost. Bottom line, as Buffet has proved, you can make huge sums of money by following simple, buy and hold strategies that don’t require frequent trades!