Warren Buffett's investment company, Berkshire Hathaway, is noted for holding stock assets worth US$2.33 billion, equivalent to Rp 36.13 trillion, in 47 stocks, as reported by CNBC on Tuesday (12/3/2024). However, more than half of the assets are concentrated in just two stocks, namely Apple (42.9%) and Bank of America Corp. (10.2%). Consequently, 46.9% of the assets, or Rp 16.94 trillion, are spread across 45 stocks.
In more detail, there are three other stocks that contribute more than 5% to Berkshire Hathaway's assets, namely American Express Company (9.1%), Chevron Corp (5.3%), and Coca Cola Co (6.6%).
As known, Warren Buffett is recognized as one of the most successful investors in the world. He doesn't hesitate to share his investment strategy. Buffett follows Benjamin Graham's value investing approach. This fundamental investor seeks equities with low prices based on their intrinsic value.
There is no universally accepted method for determining intrinsic value, but this method is most commonly estimated by analyzing a company's fundamentals. An investor may seek stocks believed to be undervalued by the market or unrecognized by the majority of other buyers.
Buffett has shared his philosophy through several extraordinary and thought-provoking tips over the years. Here are Warren Buffett's investment strategies, as quoted from Investopedia.com:
Be Patient, Then Strike
Buffett advises taking a deep breath and taking a step back when you find a company you want to invest in. He suggests giving stocks time to reach a fair valuation, then moving when the market corrects.
Stay the Course
When you've waited, now is the time to act. Buffett advises not to panic at this point and sell your holdings when the stock falters. At some point, some investors will do this. But he advises not to sell, but rather to buy.
"Keep buying," he said in an interview with CNBC. "America's business will do fine over time, so you know the investment world will do very well."
Choose Businesses, Not Stocks
Always, always consider and analyze the business behind a stock. Try to focus on businesses you understand and know.
This will help you assess where a company is heading, not just where the company is at and where the stock price of the company is currently.
Another invaluable piece of advice from Buffett is that you should plan to own stocks for at least 10 years, if not longer, remembering that businesses will take time to grow.
"If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes," he wrote in his 1996 letter to Berkshire Hathaway shareholders.