Lessons From Warren Buffett’s Personal Portfolio

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simba
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Joined: Mon Feb 19, 2007 6:47 pm

Lessons From Warren Buffett’s Personal Portfolio

Post by simba »

Morningstar has an article titled - Lessons From Warren Buffett’s Personal Portfolio

Interesting article on where Warren Buffett invests the 5% of his personal portfolio.

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So one of the big questions is how does he live on 100K per year? Well he doesn't since the dividends from the 5% of his personal portfolio generates a paltry 43 million per year :D

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Simba
Lauren Vignec
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Buffett's portfolio

Post by Lauren Vignec »

Hello Simba,

I'm certainly not suggesting that anyone else invest like Warren Buffett, as the risks to normal human beings of his strategy seem quite high.

However, it is interesting that his personal portfolio is so concentrated in just a few stocks. Not surprisingly, those stocks are large caps, old, established companies, and with only a very mild value tilt. In fact, the portfolio's dividend tilt (as a percentage) isn't terribly high.

Perhaps in some way his concentrated portfolio protects against certain kinds of black swan risks that a more diversified portfolio wouldn't protect against. Who knows what risk even means to an investor like Buffett, but his portfolio certainly isn't constructed to maximize returns.

L
KyleAAA
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Post by KyleAAA »

Buffett has an edge so he can afford to concentrate. The rest of us don't.
james22
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Post by james22 »

KyleAAA wrote:Buffett has an edge so he can afford to concentrate. The rest of us don't.
Mimic Buffett and you share his edge.

You can still buy Johnson & Johnson and Kraft stock for a lower price than Berkshire paid.
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stratton
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Re: Buffett's portfolio

Post by stratton »

Lauren Vignec wrote:However, it is interesting that his personal portfolio is so concentrated in just a few stocks. Not surprisingly, those stocks are large caps, old, established companies, and with only a very mild value tilt. In fact, the portfolio's dividend tilt (as a percentage) isn't terribly high.
It's 5% of his net worth.

It's less concentrated than his Bershire Hathaway holdings.

There are people on this board with 5% of their asset allocation in their "bingo money" account.

Those ten stocks are pretty diversified except having two banks.

Paul
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