| As you know, we're always looking for ways to | | | | or small stocks as they prefer to invest in companies |
| make money in the stock market. There no better | | | | that are more established. |
| feeling than making some money by picking out a | | | | Another philosophy that Buffet has to is make a pick |
| winning stock. And if there's one guy who's been | | | | and stick with it. He's certainly not a day trader and |
| unbelievable at picking stocks during his life, it's | | | | will buy and hold for lengthy periods of time. Of |
| Warren Buffet. Today we look at Warren Buffet's | | | | course he puts in a great deal of time researching |
| stock picks. | | | | and analyzing stocks before he makes a purchase, |
| Let's take a look at Berkshire Hathaways's (Buffet's | | | | but once he's in, he tends to stay committed for |
| company) top 5 stock holdings. Perhaps you'll see a | | | | some time. |
| common trend amongst these companies: | | | | Don't get me wrong - he will sell a stock if he sees a |
| 1) Coke | | | | good reason too. But because he's typically investing |
| 2) Wells Fargo | | | | in strong companies that he's put plenty of time to |
| 3) American Express | | | | analyze, it's highly unlikely that something will change |
| 4) Proctor & Gamble | | | | very quickly to make him want to exit the position. |
| 5) Kraft Foods | | | | I'm always amazed at how many people think that in |
| Notice how these are all HUGE names? These | | | | order to get rich from stocks you need to constantly |
| certainly aren't small, upcoming businesses. Rather, | | | | be in and out of trades. I've seen so many people |
| they are blue-chip, well established businesses that | | | | (including so-called professionals) day trade until all |
| he's picked for very specific reasons. | | | | their funds are lost. Bottom line, as Buffet has |
| Buffet is a master of "value investing", which hunts | | | | proved, you can make huge sums of money by |
| for undervalued stocks. It's uncommon for people | | | | following simple, buy and hold strategies that don't |
| who use this investment method to buy speculative | | | | require frequent trades! |