Warren Buffett Berkshire Hathaway Holdings

Warren Buffett Berkshire Hathaway Holdings is a massive wealth generation company created by Warren Buffett and Charlie Munger of Berkshire Hathaway. The two men have figured out how to build massive wealth by buying and holding investments for a long time. The company is headquartered out of Omaha, Nebraska, where Warren lives.

The investment strategy for Berkshire Hathaway is quite simple and is truly based on American ideals. The whole idea of behind Berkshire Hathaway holdings is to buy and hold investments for a long time and then keep adding upon market retracements. With such a massive amount of money under management, Berkshire Hathaway Holdings is not able to buy entire individual stocks anymore because it represents too much secular or individual risk. Buying individual companies has a lot of risks compared to buying index funds or funds that are comprised of many individual stocks which represent the American Market better.

Some of the market caps of individual stocks such as Twitter or Snapchat do not exceed fifty billion dollars. But the entire value of Berkshire Hathaway as is about 500 billion dollars, so short of owning an entire company, Warren and Berkshire Hathaway have decided to instead invest in the broad market in general instead of buying up every individual company. This is not to say that Berkshire Hathaway does not make individual investments on individual companies. For example, Berkshire Hathaway did purchase 75 million shares of Appleā€™s stock in early 2017. For more information on these acts amount of money and shares available for Berkshire Hathaway Holdings, check out their website and prospectus.

Leave a Reply

Your email address will not be published. Required fields are marked *