Think Warren Buffett Hits Home Runs Every Time? His Portfolio Tells a Different Story -- and It Can Teach You a Valuable Lesson.
Wall Street follows every move Warren Buffett, the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), makes. There's a good reason for that, given the fact that the stock has trounced the S&P 500 index (SNPINDEX: ^GSPC) over the long term. But there's some nuance here when it comes to investment advice that you need to understand before you think you have to hit home runs every time you pick a stock.Berkshire Hathaway is a very complex company. Technically, it is a conglomerate, which means that it owns a lot of different companies. Usually, conglomerates own a few businesses in similar industries. Berkshire Hathaway has 189 subsidiaries and they vary across a wide spectrum of industries, from generating electricity to making paint.Image source: Getty Images.Continue reading
Wall Street follows every move Warren Buffett, the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), makes. There's a good reason for that, given the fact that the stock has trounced the S&P 500 index (SNPINDEX: ^GSPC) over the long term. But there's some nuance here when it comes to investment advice that you need to understand before you think you have to hit home runs every time you pick a stock.
Berkshire Hathaway is a very complex company. Technically, it is a conglomerate, which means that it owns a lot of different companies. Usually, conglomerates own a few businesses in similar industries. Berkshire Hathaway has 189 subsidiaries and they vary across a wide spectrum of industries, from generating electricity to making paint.
Image source: Getty Images.
