Warren Buffett – The Stocks That Will Make Me The First Trillionaire

despite being a buyer this yearBuffett's company Berkshire Hathawaysold some of its Holdings to restructureits portfolio when Warren Buffett one ofthe greatest investors of all time takesa position the market takes noticeinvestors can monitor BerkshireHathaway's quarterly stock Acquisitionsand sales under regulatory filings a 337billion dollar market value equitiesportfolio is managed by BerkshireHathawayinvestors should focus on Berkshiresales in addition to its regularhigh-profile acquisitionsthe foundation of Buffett's investmentphilosophy is the notion that a marginof safety should always come firstan investment's margin of safety is afeature that helps prevent investorsfrom losing moneyfor instance if a stock trades for tendollars per share but the company'sassets are worth twelve dollars pershare there is a two dollar margin ofsafetythe intrinsic worth of the assets oughtto prevent a significant decline in thestock price of the companyBuffett stays away from junk Investmentsno matter how cheap they become herarely acquires failing businesses oneof the best Warren Buffett quotes thatnew investors can recall is it's farbetter to acquire a fabulous firm at afair price than a fair company at awonderful pricehe further adds temperament notintelligence is the most crucialcharacteristic for an investoryou need a temperament that doesn'tenjoy being either with or against themob very muchalthough the obvious goal of StockInvesting is to buy low and sell Highhuman nature frequently leads us to dothe opposite when we see all of ourcolleagues succeeding in business itinspires us to work toward FinancialFreedom in order to prevent furtherprice Falls we also have a tendency tosell our shares as soon as the marketcollapsesBuffett likes falling stock pricesbecause they offer chances to buy at adiscount this explains why Buffett hadan extremely busy year in 2022if you noticed that all of the priceshad been dropped by 20 while you were inyour favorite store would you panic andrun out of the door not price reductionson Buffett's favored stocks are welcomedWarren Buffett once said if you aren'twilling to own a stock for 10 yearsdon't even think about owning it for 10minutesthis is one of the most significantstatements about investing you can learnfrom himhe doesn't choose stocks with the ideathat they would increase in value thisweek this month or even this year inmindBuffett invests in stocks because hewants to keep the businesses for a longtimehe still frequently sells stocks for avariety of reasons but he approaches themajority of his assets with the idea ofholding on to them for a long timeBuffett believes that if a person can'tadopt a forever mindset with theirEquity Investments one of the bestinvestments they can make is a set itand forget it investment like an S P 500Index Fundit's still vital to be mindful thatBerkshire selling a stock does notalways mean that you should sell it orpredict how the stock will fare yourinvesting thesis might need to befinished if you possess a stock thatBerkshire is offering for saleBerkshire sold all six of the stockslisted below this yearVerizonat the start of the Year Berkshire hadroughly158.8 million shares of Verizona sizable telecommunications companywith a market value close to 8.3 billiondollarsthe company may have realigned itselffor a different economic and financialfuture because Berkshire closed out thatstake in the second quarterBerkshire might have had reason to beconcerned when Verizon released itssecond quarter results it revised itsadjusted earnings guidance downward froma range of 5.40 to 5.55 to a range of5.10 to 5.25 for the entire fiscal yearthe company also lowered its predictionfor Revenue expansionstore Capital groupthe sole Real Estate Investment TrustReit in berkshire's portfolio as of 2022was store Capital Court which thecompany owned for less than 840 milliondollarssince store is a Reit that benefits fromadvantageous tax treatment at least 90percent of its annual taxable profitswere distributed as dividends thecompany bought properties and leasedthem back to the owners under a triplenet lease single tenant business modelleaving them in charge of anymaintenance expenditureshas reached its maximum potential sincethe announcement in September that storeCapital would be acquired for about 14billion dollars in cash by the fund'sGIC managed by Oak StreetABVin the first quarter of the Year Abby abiopharmaceutical company that Berkshireinitially purchased for about 410.7million dollars was quickly sold offwith the stock up more than 21 percentand greatly beating the broader MarketAbby hasn't had a bad yearresults for Abby's third quarter wereinconsistent with adjusted profitabilityexceeding expectations but lower Revenuethan expected the company also loweredthe upper extent of its range for fullyear earnings projections whilemaintaining the lower boundroyalty Pharmabeginning in 2022 Berkshire sold itsapproximately 344 million dollars worthof royalty Pharma stock before investingin royalty rights in such companiesroyalty Pharma acts as an incubator byfinancing biopharma research anddevelopment in a variety of methodsit is challenging to pinpoint exactlywhat Berkshire did not like given thatthe stock has increased by more thanfive percent in a difficult yearthe company's third quarter earnings andrevenue surpassed analyst estimates andthe full year outlook was raised perhapsBerkshire merely didn't think thecompany had a bright futureBristol Myers SquibbBerkshire didn't like being around thepharmaceutical business as a result thecorporation's portfolio ofpharmaceutical companies had a terribleyearBerkshire sold the approximately 324million dollars worth of Bristol-Myerssquib stock it owned at the time in thefirst quarter of 2022 because this isanother stock that has performed fairlywell up more than 24 percent this yearsomething early this year left Buffettand Berkshire with a foul taste in theirmouths regarding the pharmaceuticalsectorWells Fargoit was well known prior to the start ofthis year that Wells Fargo a significantbank and Buffett and Berkshire had afalling outin 2016 Wells Fargo found itself inserious trouble after it was revealedthat Bank employees had opened creditcards and bank accounts for customerswithout their consenta number of fines and harsh regulatoryactions including an asset cap thatprevents the bank from growing itsbalance sheet have been taken against itthus far Buffett was reportedly angeredby the hiring of Wall Street veteranCharlie Scharf as the bank's CEO in 2019despite the fact that Scharf appears tobe doing a respectable jobprior to the purchase Berkshire hadowned the shares for more than threedecadesWarren Buffett is regarded as theworld's best value investor valueinvesting emphasizes buying Securitiesat discounts from their actual valuethe main goal of a value investor is toacquire shares of the company for lessthan 100 ideally much lessvalue investors seek out and makeinvestments in companies whose intrinsicvalues are far higher than the impliedEnterprise values represented in theprices at which the company's stocks aretradedthe market will eventually recognize acompany's full value according to Valueinvestors like Warren Buffett which willenhance the stock price of the companyand generate profits for the investorWarren Buffett is the best example ofhow effective long-term compoundingWorks Buffett profits from the capacityto consistently reinvest the operatingcash flow generated by berkshire'sbusinesses the strength of compoundinterest and dividend reinvestment howsuccessful is this compared to the s p500's annualized return of 10.5 percentsince Buffett took control in 1964Berkshire has had an average annualizedreturn of 20.1 percentUntil you realize that over time thishas resulted in a total gain forshareholders of 3 million six hundredforty one thousand six hundred thirteenpercent as opposed to just thirtythousand two hundred nine percent forthe S P 500 this may not sound all thatnoteworthytypically Buffett puts in long hours athis Omaha Nebraska office when investorslearn that he spends the majority of histime alone reading or doing nothing theyare typically astonished according toBuffett one of the secrets to hissuccess is learning as much as he canabout the financial world he believesthat knowledge develops with timethis concludes the video we shall returnsoon with yet another educational filmdon't forget to share and like thisvideo up until then