"Diversify portfolio". This phrase, converted into dogma by most advisers, experts and analysts, does not represent Warren buffett. The Omaha Oracle faces the market and weathers the crisis of coronavirus dedicating 43% of its portfolio to a single value: Manzana.
"Diversification is protection against ignorance"Buffett has affirmed in one of his famous quotes to frame or simply decorate any calendar of any self-respecting investor.
The Oracle of Omaha has never been a huge fan of diversification, as their words demonstrate. Simply put, if the investor knows what he is doing, you don't need to diversify your portfolio. And the facts demonstrate this. Through your investment vehicle, Berkshire Hathaway, It currently boasts of having $ 91 billion in Apple titles, 43% of the entire portfolio ($ 214 billion).
Berkshire has in the past invested more than 80% of its portfolio in just three sectors. On another occasion, Buffett's vehicle has invested two-thirds of its portfolio in four or five companies. The volatility and uncertainties that the coronavirus crisis has brought to the table have only accentuated this behavior.
This is ensured by the data collected and published by the American website Motley Fool. The figures, which were not long in being replicated by other specialized media, they are not surprising knowing Buffett's devotion to those in Cupertino.
"I do not see Apple as an action, but as our third business", has come to declare the Oracle of Omaha to the CNBC. The first two are Geico and BNSF, both subsidiaries of Berkshire Hathaway. "It is probably the best business I know," he added back then.
THIS IS HOW APPLE SEDUCED BUFFETT
Sustainable competitive advantages, a good brand and a good management team. These are the three ingredients that Buffett demands from the securities that make up his portfolio. They are all present at Apple. Only in the USA, those in Cupertino control 58% of the market share.
The prestige associated with the brand, which has survived the long shadow of the late Steve Jobs, is also not a surprise to anyone. In the last place, Tim Cook And theirs have known how to keep their legacy alive and their actions have increased by 688% since 2011, the year in which they assumed the leadership of the technological colossus, and 70% in the midst of the coronavirus crisis.
Let's not forget the share buyback. Apple has once more issued bonds (at the beginning of May, without going any further, it issued 8,500 million debt) to keep its buyback programs alive, a practice that the Oracle of Omaha values, a lot.
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