11 Tweets Feb 13, 2023
Warren Buffet is worth $106 Billion+
He is the greatest investor ever.
Here are his 5 most important investments:
Warren Buffett is the CEO of Berkshire Hathaway.
Berkshire is a conglomerate holdings company that controls tons of privately owned businesses in the insurance, utilities, energy, freight, finance, manufacturing, and retail sectors.
The stock is worth $463,000 a share
The myth is that Buffett just owns public stocks or index funds.
However, this couldn't be farther from the truth.
Berkshire has 372,000 employees through their wholly owned subsidiaries.
When Buffett invests, he focuses on investments that generates him cash flow.
Sees Candy
Buffett purchased Sees Candy for $25 Million in 1971.
This was his first big acquisition.
The investment has given them well over $2 Billion in pre-tax income since 1971.
When Buffett was building Berkshire, this was instrumental in building their foundation.
Geico/Insurance
Berkshire is one of the largest insurance companies in the world.
Buffett first learned about insurance in 1951. He fell in love with the business model. (Premiums)
Buffett eventually bought all of Geico in 1995 to add to his long list of insurance companies.
Coca-Cola
Berkshire owns 400 million shares of Coke about 9.2% of the company.
The stake cost Buffett around $1.3 Billion or about 7.8% of his public portfolio.
Most importantly, Coke gives them $672 Million in dividend income each year that Buffett uses to buy companies
Apple
Buffett has called Apple the greatest company that he has ever invested in.
Berkshire owns around 907,559,761 shares of Apple at a cost of $34.26 a share.
Apple gives them $775 Million annually in dividend payments
Buffett Partners
When Buffett first started, he ran a modern day hedge fund called Buffett Partners.
If you invested $10,000, it would have grown to $160,000 in 12 years. The fund averaged 25% a year.
The high fee structure allowed Buffett to get cash to buy Berkshire.
When you study Buffett and Berskhire, I always recommend studying young Buffett.
He knew how to build wealth at a young age in a rapid manner. He traded stocks via arbitrage and then eventually looked to buying companies outright.
Profits= New Investments
Thank you for reading!
If you enjoyed this twitter thread:
-RT my first tweet
-Follow me @investmattallen
-Subscribe to my newsletter
I tweet things like this everyday to help you create generational wealth
Every Wednesday, I discuss complex ideas about money, investing, and finance in a simple way.
Typically a 5-minute read and free, it’s a no brainer :)
Sign up:
mattallenletter.com

Loading suggestions...