Warren Buffett – the name stands for smart investing and long-term success. His formula for success? The ability to recognize the true value of companies and thus be successful in the long term.
Buffett's strategy is simple but effective: instead of diversifying widely, he focuses on a carefully selected company. This approach, coupled with his patience, has not only brought him first-class returns over many decades, but has also secured his place on the stock market Olympus.
Buffett invests when others are trembling. His credo: “Be greedy when others are fearful.” But Buffett is not just someone who comes up with clever sayings – he also follows his words with actions. A prime example is the financial crisis of 2008, when many people panicked. Buffett recognized the opportunity and invested heavily in the banking sector – a decision that brought his holding company Berkshire Hathaway gigantic profits and confirmed his strategy once again.
Berkshire Hathaway – Buffett's empire
Under Buffett's leadership, Berkshire Hathaway grew from a small textile factory into one of the largest and most successful conglomerates in the world. Today, the company includes a wide range of companies from different business areas, including insurance, energy and industrial companies. The result is an impressive stock portfolio – which has recently undergone remarkable restructuring. Buffett's gradual sale of his Apple stake, which was long the flagship of his portfolio, could indicate that he has become more cautious about the future market outlook than before. At the same time, the oil and gas sector has increasingly become the focus of the investment legend in recent years.
Another aspect of his strategy is Berkshire Hathaway's high cash holdings, which recently rose to over 49 percent of total assets. This liquidity buffer is no coincidence – it is Buffett's safeguard to be able to invest cheaply and on a large scale in the event of a potential market crash.
Buffett's recipe for success for your portfolio
For security-oriented investors, it could now be time to significantly increase the cash quota in view of rising prices – just like Warren Buffett. Instead of continuing to invest in blue chips or tech and AI stocks, the focus could now be on selected oil and gas stocks. In his exclusive stock report “The Buffett Principle”, stock market expert André Fischer has compiled stocks that were selected precisely according to Buffett's strategy and bundled in the “Buffett Depot” in the report. These stocks are too small for Buffett himself, but offer investors the chance to replicate Buffett's approach with interesting new stocks.
To the report
