{"id":3029,"date":"2024-02-16T07:28:00","date_gmt":"2024-02-16T07:28:00","guid":{"rendered":"https:\/\/www.syfe.com\/au\/learn\/?p=3029"},"modified":"2024-02-08T07:38:36","modified_gmt":"2024-02-08T07:38:36","slug":"investing-like-warren-buffett","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/au\/learn\/investing-like-warren-buffett\/","title":{"rendered":"Guide to Investing like Warren Buffett"},"content":{"rendered":"\n

When Buffett makes a buy or sell decision, the whole investing world pays laser focus. This statement alone is a testament to the influence he and his team at Berkshire Hathaway has over stock trading.<\/p>\n\n\n\n

So, if you want to invest like Warren Buffett, read on to learn about what he\u2019s been adding to Berkshire Hathaway\u2019s equity portfolio.<\/p>\n\n\n\n

Buffett\u2019s notable stock buys<\/h2>\n\n\n\n

For years, Buffett has been sitting on a large cash pile, wary of sky-high valuations. But as the US market retreated in recent months, attractive entry points have opened up. In the last quarter, he\u2019s been putting cash to work with his favourite investments.<\/p>\n\n\n\n

Apple<\/h2>\n\n\n\n

Buffett added another 4 million Apple shares in Q2 2022. Apple is Berkshire\u2019s single largest stock holding, making up 42% of the entire portfolio. Recently, the company signalled plans to significantly expand its advertising business.<\/p>\n\n\n\n

Advertising currently generates only 1% of Apple\u2019s total revenue, but Apple wants to crank that up to the double digits.<\/p>\n\n\n\n

Occidental Petroleum and Chevron<\/h2>\n\n\n\n

Warren Buffett has been absolutely bullish on energy stocks this year. Berkshire is now oil producer Occidental Petroleum\u2019s largest shareholder with a 20% stake, after Buffett bought up more than $11 billion worth of shares this year. Occidental is one of the biggest producers in the Permian Basin, the largest oilfield in the US.<\/p>\n\n\n\n

Buffett also added more shares of oil giant Chevron, Berkshire\u2019s fourth-largest holding. Chevron reported $11.4 billion in earnings during Q2 2022, up from $3.1 billion in the same quarter last year.<\/p>\n\n\n\n

Paramount Global<\/h2>\n\n\n\n

Buffett added to his recently opened position in Paramount Global, which operates film and TV studios, as well as Netflix competitor Paramount+<\/a>.<\/p>\n\n\n\n

Paramount recently reported second-quarter earnings that surpassed analyst expectations; Top Gun: Maverick was one of the highest-grossing movies in history. The company also announced a new partnership with Walmart to offer Paramount+ streaming services to Walmart+ subscribers.<\/p>\n\n\n\n

Activision Blizzard<\/h2>\n\n\n\n

Berkshire now holds 68.4 million shares in the video-game maker, up from 64.3 million in Q1 2022. Buffett has invested in the company as an arbitrage play as Microsoft prepares to acquire Activision for $95 a share. The stock currently trades at $78.<\/p>\n\n\n\n

Buffett is a fan of energy and dividend stocks<\/h2>\n\n\n\n

Buffett also likes well-managed companies with low debt, strong cash flows, growing dividends, and share buybacks. Many of his stock picks check those boxes.<\/p>\n\n\n\n

For instance, Occidental raised its annual dividend payout by 1,200% in February 2022. Chevron\u2019s dividend yield in 2021 was an attractive 4.5%. Apple paid out $14.4 billion in dividends last year and has authorised $90 billion in share buybacks.<\/p>\n\n\n\n

Lessons from Warren Buffett<\/h2>\n\n\n\n

Over the course of his illustrious investing career, Buffett has given us regular investors many words of wisdom. If you want to take a page from Buffett, here\u2019s what he\u2019s said about his key investing principles.<\/p>\n\n\n\n