Value vs Growth indices are sitting back at dot-com levels and technicals suggest a positive environment for Value-oriented stocks going forward.
Warren Buffett's Portfolio
Warren Buffett is a prominent value investor, finding undervalued assets. You can build Warren Buffett's portfolio by doing your own analysis or buying Value ETFs.
Warren Buffett is an American investor, business magnate, and philanthropist. He is considered one of the most successful investors in the world and has a net worth of over $95 billion as of 2022.
Buffett is the Chairman and CEO of Berkshire Hathaway, a conglomerate holding company with interests in insurance, railroads, energy, and manufacturing.
Buffett is a value investor who invests in companies that he believes are undervalued by the market. He looks for companies with strong fundamentals and a history of profitability. He also looks for companies with a moat, or a competitive advantage that will protect them from competition in the future. Buffett has a long-term investment horizon and is patient with his investments.
He does not try to time the market and is willing to wait for the right opportunity to buy a stock. Buffett is a contrarian investor who often buys when others are selling and vice versa. He has said that he is "fearful when others are greedy and greedy when others are fearful." Buffett has made many investments in his career, but some of his most famous are his investments in Coca-Cola, American Express, and Wells Fargo.
How can you build a Warren Buffett portfolio?
- Buy Berkshire Hathaway stock
Berkshire Hathaway (BRK) is Warren Buffett's company which invests in other companies like Coca Cola and Apple. You can purchase shares directly in his company.
- You can become a value-investor
Using Warren Buffett's approach of buying undervalued investments, you can do fundamental analysis to find under-appreciated companies and build your own portfolio from. Value investors typically look at multiples like Price-to-Earnings and other ratios to find companies and do a deep-dive on their financials to make sure they are not value traps.
- Invest in Value ETFs
Value ETFs look at the indicators that we mentioned in #2 above and screen companies that fit this profile, automatically allocating capital to the top "value" stocks as they define them. You can use Investipal to identify these Value ETFs and what they hold get a quick picture if an ETF aligns with your goals.