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  • Added for You - What Can We Learn From Warren Buffett?

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  • His three largest equity holdings are Coca Cola (KO), American Express (AXP), and Proctor & Gamble (PG) -- all three are components of the Dow Jones Industr
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    Warren Buffett is considered by many as the greatest investor alive and one of the greatest of all time. After all, he's the second richest person in the world, second only to Bill Gates.

    So how does the "Sage of Omaha" invest and what can we learn from his activities? Morningstar has a very interesting article on the subject...

    http://news.morningstar.com/doc/article/1,,144207,00.html

    Here are some highlights...

  • Buffett's portfolio is concentrated in only 33 stock holdings and more than 90% is in the top ten names. So he doesn't believe in a lot of diversification. He thinks that diversification is just protection against ignorance.
  • His three largest equity holdings are Coca Cola (KO), American Express (AXP), and Proctor & Gamble (PG) -- all three are components of the Dow Jones Industri
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    only to Bill Gates.

    So how does the "Sage of Omaha" invest and what can we learn from his activities? Morningstar has a very interesting article on the subject...

    http://news.morningstar.com/doc/article/1,,144207,00.html

    Here are some highlights...

  • Buffett's portfolio is concentrated in only 33 stock holdings and more than 90% is in the top ten names. So he doesn't believe in a lot of diversification. He thinks that diversification is just protection against ignorance.
  • His three largest equity holdings are Coca Cola (KO), American Express (AXP), and Proctor & Gamble (PG) -- all three are components of the Dow Jones Industr
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    /p>

    http://news.morningstar.com/doc/article/1,,144207,00.html

    Here are some highlights...

  • Buffett's portfolio is concentrated in only 33 stock holdings and more than 90% is in the top ten names. So he doesn't believe in a lot of diversification. He thinks that diversification is just protection against ignorance.
  • His three largest equity holdings are Coca Cola (KO), American Express (AXP), and Proctor & Gamble (PG) -- all three are components of the Dow Jones Industr
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    and more than 90% is in the top ten names. So he doesn't believe in a lot of diversification. He thinks that diversification is just protection against ignorance.
  • His three largest equity holdings are Coca Cola (KO), American Express (AXP), and Proctor & Gamble (PG) -- all three are components of the Dow Jones Industr
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  • His three largest equity holdings are Coca Cola (KO), American Express (AXP), and Proctor & Gamble (PG) -- all three are components of the Dow Jones Industrial Average. His most recent investments are in Home Deport (HD), Lexmark International (LXK) and Tyco International (TYC).
  • Morningstar says that Buffett thinks that "the best way to reduce risk is to focus on companies you know extremely well and companies that boast strong competitive positions. If their earnings or share prices happen to bounce around a lot in the short term, who cares?"
  • He continues to hold a lot of cash -- approaching $50 billion, which is over 30% of his portfolio. This is reflective of the fact in the current overpriced market environment he can't find investments that offer much value. And he will just sit in c

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