Dusseldorf Warren Buffett publishes his portfolio four times a year and thus serves as inspiration for the next stock purchase for many investors worldwide. The purchasing decisions of the “Oracle of Omaha” are considered a seal of approval for a company. The last mandatory report to the US Securities and Exchange Commission on Monday shows that the star investor has restructured the $390 billion portfolio of its investment holding company Berkshire Hathaway and is now putting a new focus on the energy sector.
Buffett values a long investment horizon and only invests in companies that he believes can generate sustainable earnings growth. For example, he has relied on the beverage manufacturer Coca-Cola for years. His reputation precedes the investor legend: It is said that whatever Buffett touches turns to gold. But is it really worth imitating your stock purchases?
In any case, Handelsblatt finance editor Andreas Neuhaus urges caution. For the Handelsblatt, he and financial editor Jürgen Röder analyzed 37 new investments made by Buffett since 2016 – with surprising findings. In the Handelsblatt Today podcast he explains: “In almost all cases, Buffett imitators ensure a jump in prices the following day.” This can be observed on Tuesday using the example of Citigroup.
It was only announced on Monday that Buffett had bought shares in the bank, which were worth around $3 billion at the end of the quarter. The share price then rose by around six percent on the following day. According to the Handelsblatt experts, anyone who tries to replicate Warren Buffett’s purchases for their own portfolio should never place an order without a limit on the first possible trading day.
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Neuhaus also advises: “Anyone who wants to emulate the oracle should not only look at which shares they are buying, but how big their commitment is when buying.” Very few investors could invest to the extent Buffett did. It is all the more important to find a cheap entry point and to pay attention to the distribution in the Berkshire Hathaway portfolio. In many cases, the stock Buffett bought is significantly down a month after the purchases were announced.
Also: Sweden and Finland want to join NATO – the Swedish and Finnish parliaments voted in favor of this on Monday. Both countries meet the accession criteria. However, all 30 NATO members must first agree to joining. Turkey, for example, could veto it. President Recep Tayyip Erdogan has already stated that he is “not positive” about the accession. Political editor Teresa Stiens classifies the opportunities and risks of NATO expansion.
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