There are a few important points to know when it comes to understanding what Warren Buffet invests in. The first is the book published in 1949 that has helped him understand the best way to invest. The other points are business focused on practical items made for everyday people to use.
Warren Buffet read the book “The Intelligent Investor” by Benjamin Graham published in 1949. He says he uses basically the same things today that he read about in the book. He uses the concepts put forth in the book, adds his own knowledge of the public and makes his investment.
Two of Warren Buffets biggest investments have yielded him the highest return are in PetroChina and BYD. PetroChina was a failing oil company until Warren Buffet came in invested. Then the company found new oil and the price of oil went up making the company very valuable. Buffet sold the Berkshire Hathaway, his acquisitions company, their holdings of PetroChina for a gain of 3.6 billion dollars.
BYD is a Chinese car battery company spearheaded by Wang Chuan-Fu an intelligent inventor type of guy. Warren in invested 230 million into the company and now his 230 million investment is worth about 1.8 billion dollars.
Warren Buffets idea in investing is “buy what you know”. His acquisitions company invests in things like Dairy Queen, Insurance, and See See’s Chocolates. These are companies that sell practical items to millions of people.
Warren Buffet is very thoughtful and reasonable when it comes to what he invests in. He is a frugal and careful man when it comes to how he spends his money. The best way o get to know how he chooses his investments is to read ” The Intelligent Investor” by Benjamin Graham.