Warren Buffett the American investor, business tycoon, philanthropist, and the chairman and CEO of Berkshire Hathaway is considered one of the most successful investors in the world and has a net worth of over US$78.9 billion as of August 2020, not bad.
OK ,we all know who he is, and his basic philosophy, the belief that people should only buy stocks in companies that exhibit solid fundamentals, strong earnings power, and the potential for continued growth. Holding the investment until they mature. Hindsight is a wonderful thing.
If I only bought Microsoft ☹
If we want to succeed as he has, should we keep an eye on what he is doing now?
His company has recently disclosed latest investments, as required.
Berkshire Hathaway bought shares in drug companies AbbVie, Bristol-Myers Squibb, Merck and Pfizer between July and September, according to filings with the US regulator.
Ok, if you had all the money in the world and you see the Covid19 pandemic decimating all corners of the world, economically and socially, it would seem a good bet to invest in companies that may save us.
-- Pfizer (PFE)
Ok, this was a master stroke, although he bought 3.7 million Pfizer shares in the third quarter of 2020 and many in the know, suggested they were on the verge of announcing a successful vaccine, his timing couldn’t be better and the stock shot up when this news was globally announced with optimism & elation.
AbbVie is an American publicly traded biopharmaceutical company founded in 2013.
Why did he invest? Well the Covid19 pandemic has facilitated a massive surge in investment for research in health and many believed AbbVie was the front runner for the vaccine, secondly, to some extent AbbVie is cheap and has other drugs in the pipeline.
Year-on-year quarterly revenue growth grew by 52.2%, now sitting on 40.65B for the twelve trailing months.
I suppose the adage “money makes money” is appropriate here.
Other interesting investments.
-- Snowflake (SNOW)
Snowflake Inc. is a cloud-based data-warehousing company that was founded in 2012. It has raised more than $1.4 billion in venture capital, and is based in San Mateo, California. It was publicly launched by Bob Muglia in 2014.
Why did he invest?
According to some analysts, like Google, Snowflake’s software will only get more powerful with more users on its platform, uploading more data, and running more analytics. Essentially, Buffet seems determined not to make the same mistake it did with Google.
-- T-Mobile US (TMUS)
He purchased T-Mobile US stock taking 2.4 million shares. By Berkshire's standards, it was not a huge purchase & T-Mobile doesn't look particularly cheap by conventional calculations.
Why did he invest?
T-Mobile is integrating networks and customer bases with Sprint, which T-Mobile acquired back in April. Over time, T-Mobile expects to reap $6 billion in partnerships, and some analysts believe that number could eventually be higher. T-Mobile's has also placed itself in pole position in the 5G market.
-- General Motors Co. (GM)
Ok, the motor vehicle industry was in trouble even before Covid19, but as Tesla is proving, advancements and development in electric motors is the way ahead.
So why GM?
General Motors has come a long way since exiting bankruptcy in 2009. Management has brought down costs in a big way while improving the company's growth potential. Operating income has more than tripled over the last five years.
What's more, GM has made significant investments in self-driving cars. The company acquired Cruise Automation in 2016, and currently has about 1,100 employees working on self-driving cars in its Seattle office.
Having looked at some seasoned analysts’ views on these stocks, like always there seems to be a diverse viewpoint, however, should we really ignore the mans decision making. He openly regrets not jumping into tech stocks sooner.
Trade or buy?
Great article about the man