80% of Warren Buffett's Portfolio Is Invested in These 7 Stocks
For the better part of six decades, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has put on a moneymaking clinic for Wall Street. He's created more than $630 billion in value for his company's shareholders since becoming CEO in 1965, as well as delivered an aggregate return of 3,641,613% for his company's Class A shares (BRK.A). That compares to a total return, including dividends, of 30,209% for the benchmark S&P 500 over the same time frame.
The Oracle of Omaha's success as an investor is based on a multitude of factors, including his love of cyclical businesses, his willingness to hold stocks for years and decades at a time, and packing Berkshire's portfolio with dividend stocks. But what's often overlooked is that Buffett shuns diversification in favor of concentration. He doesn't believe diversification is necessary if you know what you're doing.
Although Berkshire Hathaway's portfolio was packed with more than 50 securities, as of this past weekend, just seven stocks accounted for 80% of the company's invested assets.
Source Fool.com
