Moomoo Learn shared · Mar 1, 2022 21:54

Warren Buffett had the last laugh in 2021. How does he make it?

Warren Buffett, the beloved 'Oracle of Omaha', is back yet again with his much-read annual letter for $Berkshire Hathaway-A(BRK.A.US)$ shareholders.

Business Pickers, Not Stock

$Berkshire Hathaway-A(BRK.A.US)$ has over $88bn in cash and cash equivalents. Warren Buffett and his co-founder Charlie Munger are excited about very few opportunities. Buffett said he prefers to keep 100% of his net worth in equities. But the problem is there are not enough marketable businesses.

Source: Berkshire Hathaway Inc. "2021 Annual Report"

They chose investments not based on value vs. growth stock debate but seeing both value and growth as part of the same equation. The ace investor, Warren Buffett, has been following this tradition since 1977.

"Charlie and I are not stock-pickers; we are business-pickers."

Investing in smart ways is essential. Learn more about investment philosophies from legendary investors (check our free course on this topic).

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Reveal Buffett's portfolio: what stock are he buying?

Berkshire's annual report revealed its 15 biggest holdings were worth a combined $311 billion at the end of 2021 — quadrupling their total cost base of $78 billion. The conglomerate's average gain on paper from those core positions was nearly 800% as of December 31, and it was in the green on all but one of them.

For all of 2021, net income more than doubled to $89.8 billion, aided by the stock prices of Berkshire's largest stock investments — $Apple(AAPL.US)$ , $Bank of America(BAC.US)$ , and $American Express(AXP.US)$ — which each rose by more than one-third.

Buffett specified that in his portfolio of shares, the stake in $Apple(AAPL.US)$ is 5.55%, compared to 5.39% a year earlier. "Last year, $Apple(AAPL.US)$ paid us $785 million of those. Yet our 'share' of $Apple(AAPL.US)$ 's earnings amounted to a staggering $5.6 billion." he said.

Warren Buffett had the last laugh in 2021. How does he make it?

How to easily track holdings of smart money?

Many investors have sought to use this letter as a guide for their investment strategies. Moomoo provides easy access for retail investors to follow the investment ideas of $Berkshire Hathaway-A(BRK.A.US)$ and other statr institutions:

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