Name: Inside The Investment Portfolio Of The Richest Investor In The World
Uploaded: 2020-12-24T19:25:08.000Z
Duration: 9 min 51 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Future simple

If you ask anyone who is the richest investor of all time, everyone will point fingers at

Warren Buffett, and that is not by accident.

Gerund

He started investing when he was just 11 years old and built his net worth to over 87 billion

To an average person, the stock market seems so complicated where no one seems to clearly

Whenever things seem to go in the right direction, we end up facing a financial disaster.

But unlike everyone else, This guy seems to know a secret formula when it comes to investing.

Over his life, he continuously made successful investments over and over, and he is considered

by many as the greatest investor of all time.

He was so good that just by the age of 16, he already made over 53K thousand dollars.

Can you imagine making Making 53 grand from the stock market before you hit 16 and still

Do you want to learn how to invest like Warren Buffett?

Do you want to find out his secret formula?

Then stick around because we are going to take a deep look into Warren Buffet's investment

He doesn't care about how the company is going to perform today, tomorrow, or even next year.

His primary concern is where the company will be ten years from now or 15 years from now.

But How do you know how a certain company is going to perform in 10 years?

That's why Buffett almost always invests in companies with simple business models.

This is the product, these are the customers, and this is why they are going to buy this

You don't have to be a genius to understand their business models.

Its so simple that even a little kid would understand that model.

That's what Buffett loves because the simpler the business model is, the easier it gets

to predict the future of that company, and if their products are going to stay relevant

The second trait that warren buffet looks for is - will the customer buy the product

If you have the kind of a product that would sell once and the client wouldn't need it

A great product is when your clients would keep coming back for it every now and then,

whether it's every day or every week or even every year.

Like bread, for example, if you are selling bread, you would expect the exact same customers

to come back tomorrow or next week over and over, and ten years from now, people would

You might sell it in a different way or a different form.

You might improve its quality, make it tastier, package it fancier, but it's still the exact

In fact, this factor is so important that it led to the rise of subscription business

models, where the business would charge you a little fee every month like Netflix, for

example, or every year like amazon prime.

Because it's a more sustainable strategy.

Once you acquire the customer, you keep generating cashflow theoretical forever.

Finally, the third component is the brand.

People have the tendency to buy from the companies that they feel connected to and familiar with.

Whos sneakers would you buy, the first ones are from a brand that you have never heard

of, and the second ones are good old Nikes.

Even if they are cheaper and look fancier, you probably would hesitate to buy them because

you simply haven't heard of that brand before.

On the other side, you easily recognize Nike.

It's a well-established brand and is known for making great sneakers.

You might already be wearing a pair of Nike shoes, so which one would you chose.

And that's why Buffett pays such critical attention to how powerful is the brand name

before throwing his billions into that company.

He understands how much of an influence it's going to have on the consumer's decision.

In fact, if the brand is strong enough, consumers would buy almost anything that company produces.

And now, since we know Buffett's secret formula, let's take a look at his portfolio and find

Warren Buffett has always stayed away from tech companies, but in 2016, he made an exception

and invested billions of dollars in Apple.

In fact, his company, Berkshire Hathaway, holds almost a billion Apple stocks worth

an estimated amount of 118.6 billion dollars.

It is his biggest position, at least for now.

Apple, of course, does not sell bread, but if you pay attention, it has all the three

At least for now, they want to keep making devices that people just need on a day to

Such as an iPhone or MacBook, they rarely come up with super innovative products, but

they just know how to make a smartphone for the average consumer.

Do apple customers come back again over and over?

Yes, they do, iPhone is, of course, not a necessity, but people keep coming back for

In fact, in the last ten years, Apple has drastically been shifting to a subscription-based

You need a subscription to apple music, apple tv, iCloud, and a million other things.

And lastly, does apple has a strong brand name?

It is probably the most powerful brand in the world!

His second-largest investment is in Bank of America.

He holds 29.8 billion dollars worth of shares of Bank of America.

We are not going to get into the detail, but you get the picture.

Their business model is straightforward, they have a strong brand, and their clients keep

And it doesn't seem like people will no longer need financial services in the future.

That's why he has also invested in other banks, starting from Wells Fargo to Goldman sacks.

He was also a huge investor in many airlines, but 2020 forced him to sell all of his airline

shares because the future of this industry seemed too unpredictable.

He also holds 21 billion dollars worth of Coca Cola stocks.

In fact, he started investing in Coca-Cola back in 1988, and his investments since then

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