Monday 13 July 2009

Berkshire Hathaway

Yes I'm posting more about Warren Buffett! But then How to buy stocks for beginners would not be the same without constantly mentioning the daddy of all investors. Anyway, Berkshire Hathaway so if you're trying to learn how to invest like Warren Buffett then why not take a look at Berkshire Hathaway's holdings. The shear mention that this company is interested in another is enough to make a share price rocket in the stock market. So as a beginner what can you tell from looking at these companies? For a start you can see that Warren Buffett always stuck to the rule of investing in something you know or can easily understand. He doesn't own any tech stock because he doesn't know anything about it. He does own a large number of stocks in Gillette and Coca Cola. How hard is the razor and soda business to understand? Not very...hence he bought them. He did of course split up the stock to A and B stock to let others who don't have quite as much cash to jump on the Buffett gravy train. I've resisted the buffet gravy tie in I bet you're glad.

So if you fire up any tool I keep mentioning yahoo finance but anyone will do and look up BRK.A or BRK.B that's the stock symbols by the way, you'll be able to see a breakdown of the company. The stocks are quite expensive. Then he is very successful at this. You can also check out the Berkshire Hathaway website which is absolutely atrocious I have to say. This free rubbish from Blogger is a better template. I can't quite claim to have the same wisdom to bass on about how to buy stocks. That's the great thing about the Berkshire Hathaway site, you can read the letters than Warren Buffett sends out to his shareholders without being one yourself. . Like I said earlier, he's the best in the business so why not learn from him? I have to mention Charlie Munger as well. He's the Vice President of Berkshire Hathaway and widely regarded as Buffett's partner in the stock market. He's also just old. Anyway, he's someone worth looking up as he applies the same techniques that Buffet does taught by Ben Graham all those years ago. There's no point in telling you how much Berkshire Hathaway is worth at the moment because the nature of the business makes it clear it'll be out of date as soon as I post this. There's so much information out there on basics of stock market for beginners it's hard to know where to start...or stop.

In short, read up on Berkshire Hathaway and Charlie Munger. End of lesson for today folks!

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