In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
Berkshire Hathaway (BRK.A) reported excellent earnings last week, sending its class A shares to an all-time high. The stock is up more than 25,000 times since Buffett took control of the company in 1965, according to Barron’s.
Most investors would like to emulate Buffett’s investing style in their portfolios, which is not easy, but we can certainly learn from his strategies. In the past, Buffett invested in undervalued companies with great potential, which he called “cigar butts.” However, his thinking later evolved to “it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
The Oracle of Omaha avoided investing in tech companies earlier in his career but changed his stance later. Apple AAPL, which is now Berkshire’s largest stock investment, was praised by Buffett as “a better business than any we own.”
The SPDR MSCI USA StrategicFactors ETF QUS seeks to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations.
The legendary investor likes companies with “economic moats,” that allow a company to outperform others in the same industry over time. The VanEck Morningstar Wide Moat ETF MOAT invests in attractively priced companies with sustainable competitive advantages.
Buffett has long recommended that most investors should stick with low-cost index funds. The iShares Core S&P 500 ETF IVV and Vanguard S&P 500 ETF VOO charge just 0.03% each, but SPDR Portfolio S&P 500 ETF SPLG‘s new fee of 0.02% makes it the cheapest in the space.
Fastenal FAST, MasTec MTZ and United Rentals URI are among Berkshire-like companies that investors may want to consider.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email [email protected].
Apple Inc. (AAPL): Free Stock Analysis Report
Fastenal Company (FAST): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.A): Free Stock Analysis Report
United Rentals, Inc. (URI): Free Stock Analysis Report
MasTec, Inc. (MTZ): Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports
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Zacks Investment Research
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