Leveraging Warren Buffett
There were a few major investments that Warren Buffet bought last year through Birkshire Hathaway.
BNI was his biggest purchase as he bought 4.7 billion
Kraft he bought 4.2 billion
Wells Fargo he bought 3.0 billion
JNJ 2.7 Billion
sanofi-aventis on the France exchange he bought 1.5 billion
US bankcorp he bough 1.5 Billion
One of the things you can do is look at what his average cost per share is, and consider buying those that are lower than his cost per share, and start your initial position now, and then just buy when Bufett buys.
His biggest loser was sanofi-avntis, but we won’t count that since most don’t trade France’s shares.
KFT Avg cost per share 33.37 (currently trading around 31)
BUD Avg cost per share 48.25 (currently trading around 46.75 )
USB Avg cost per share 32.14 (currently trading around 31.27)
All of his other investments that he made last year, he’s a winner on… His biggest winner being Posco (PKX)
So I’m sure it’s not too hard to realize that if Warren Buffet buys a stock at 48, and you can get it at 46 a year later, and you have enough money to average down if need be, you probably should consider it.
“piggy backing” off of Buffett, or any guru, is just one of many trading systems. However, it’s a good one, and one that is great for someone with a long term time perspective. You don’t have to pay $100,000 per share just to get ahold of Berkshire Hathaway’s investments, you can just as easily piggy back off of Buffett’s ideas, and sometimes get a stock Warren Buffett bought for less than he paid!
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