Warren Buffet has invested in many companies since he began to buy stocks. The Oracle of Omaha is known for being a conservative and old school when it comes to buying shares from a company. Warren Buffet follow a simple rule when it comes to investing, he makes sure that the company has consistent earning power, a good return in equity and has a capable management.
Right now the company that gives Berkshire Hathaway company the most earnings is Apple. Warren Buffet started buying shares from Apple in 2016, one of the most recent investments he is convinced that Apple is going to continue growing and is betting big on Mac, iPad, and iPhone. Wells Fargo is second in the list, as of January 2018 was first but the recent purchase of shares into Apple has now become number two. Bank of America comes in third place having a $20.6 billion market value. Coca-Cola number 4 with a market value of $18 billion and top holding number five is American Express with a $15 billion market value.
All of these companies have one thing in common, they follow the simple rule that Warren Buffet has when it comes to investing they have consistent earning power, good return on equity and a capable management.
Most of the companies that are in Berkshire Portfolio are big companies, the reason that Warren Buffet purchases stable companies is that a company that does not have good equity and instead has a large ratio of debt means that most of the company’s earnings are going towards serving debt not making a good profit margin. Warren Buffet rarely makes mistakes when it comes to investing and it’s because of the investing style that continues working for him.