Investing Hacks: Warren Buffett wins big as Apple amazes. How he does it?

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Warren Buffett's out-of-character bet on Apple may end up being one of his winningest investments, as the tech giant hit yet another record to top a $3 trillion market valuation this week.

Apple (2016 -2022)

The charm of long-term investment

Berkshire Hathaway began buying Apple stock in 2016. Flash forward to 2022, Apple's stock price has risen over 600% since 2016 and Hathaway's Apple investment is close to $160 billion in market value.

The charm of dividends

Other than Apple’s giant appreciation in share price, it has also been a lucrative bet for Berkshire because of its hefty payouts.Berkshire has enjoyed regular dividends, averaging about $775 million annually.

What is a Dividend?

A dividend is a distribution of some company's profits to its shareholders.

Matured companies are more likely to pay dividends, while growth companies prefer to reinvest most of their profits for business expansion.

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Why sticks to value investing

Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Value investors are long-term investors of quality companies.

Focusing on long term returns not short term volatility would be helpful to stick to your strategies, make the "miracle of compounding" come true, and immune from the negative mindsets of FOMO, loss aversion, short-sighted thinking, and herding effect…

Warren Buffett is one of the most respected value investors who focus on the company's fundamentals and intrinsic value. This investment school is also called fundamental analysis.