Learn to invest with Buffett

Chapter 68

Chapter 11 Section 3 Types of stock portfolios held by Buffett

I will not invest in 50 or 70 companies at the same time, that is the traditional investment method of "Noah's Ark".I like to focus on investing in a small number of good businesses with moderate capital.

--Warren Buffett
Buffett has always summarized his investment strategy as concentrated investment, and he only invests in a few selected stocks. "Choose a few stocks that can generate above-average returns in the long run, and concentrate most of your capital on these stocks. Regardless of the short-term rise or fall of the stock market, stick to holding stocks and strive for success in a stable way." This is Buffett's concentrated investment Thought.It can be said that the concentrated investment strategy is one of the biggest reasons for Buffett's great success.

First, look at Buffett's portfolio (table below).

Company's shareholding (number of shares) shareholding ratio (%) market value (USD)

American Express 151, 610, 70011.8 73.12% [-]
Coca-Cola 200% 000
Gillette 96%000
H& Rblock14, 610, 9008.2%8.09
HCA15, 476, 5003.1%6.65
M& Tbank6, 708, 7605.6%6.59
Moody's 24 000% 00016.1
PetroChina 2 338% 961
Washington Post 1, 727, 76518.1 13.67% [-]
Wells Fargo 56, 448, 3803.3 33.24% [-]
Other - 46.28
Although the portfolio has a market capitalization of more than $400 billion, his major holdings are in just 10 companies.

Among them, American Express, Coca-Cola, and Gillette are the more popular stocks among the stocks held by Buffett, and they are also some of the best stocks selected by Buffett.Buffett once bought more than 23 billion shares of PetroChina, and according to relevant reports, he has already sold a considerable part.

Like Buffett, many value investing masters adopt a concentrated investment strategy and invest most of their funds in a few stocks of outstanding companies, but it is these few stocks that bring them the most investment profits.This coincides with the 80:20 principle: 80% of investment profits come from 20% of stocks.

Investment motto:

Investors need to carefully allocate funds to the targets they want to invest in, in order to achieve the purpose of reducing risks.As Buffett said, if a person is limited to making ten kinds of investment decisions in his life, then the number of mistakes must be relatively small, because at this time he will consider all investments more carefully before making decisions.Therefore, the combination of less and better definitely has a very big advantage, which also verifies Fisher's famous saying "less is more".

(End of this chapter)