How to Copy Warren Buffet’s investments

Warren Buffet is one of the most successful investors in the world.  So it's not surprising that many people want to emulate his trading style.

I've put together three ways that I believe you can copy Warren Buffet, from investing directly in him to trying to trade in the same manner using value investing.

Read on to find out how you to can copy Warren Buffet:

Investing in Berkshire Hathaway

Buffet makes his investments primarily through Berkshire Hathaway.  This is a public company, so it's possible to buy shares in the company and you'll profit from the rise in share price (if it does rise) over time.

Berkshire Hathaway doesn't pay dividends.   Warren Buffet believes that investing profits back into the business will offer a better return for investors than paying a dividend.  This strategy seems to be paying off as the value of the company has increased over 700k% since 1964.

This method is the most direct way to profit from the success of Warren Buffet.

Value Investing

Warren Buffest invests using value investing.  The concept is fairly simple, invest in companies that have an intrinsic value greater than the value of the company today.  The tough part is finding the companies, as it takes a lot of research.

If you want to learn more about Value Investing from the same person that taught Warren Buffet, you should read “The Intelligent Investor“.  It's seen as the bible for many investors and is one of my top finance books.

If you choose to start value investing, you won't be copying Warren Buffet, but emulating his investment style.  This option is for the more experienced investor looking to go it alone.  If you're not experienced, I would recommend starting out by practice trading on a virtual platform before using real money.

Invest in the Warren Buffet CopyPortfolio

If you want to invest in the same companies that Warren Buffet invests in, consider doing it through a CopyPortfolio.  CopyPortfolios are a financial product offered by the etoro trading platform.  They group together a number of assets and allow you to invest in a single transaction.  Much like an index fund.

One of the CopyPortfolio on offer is the WarrenBuffet-CF.  This fund is based on the public SEC filings of Berkshire Hathaway.

This option is the most automated, you simply invest and let the fund do its work.

So there are 3 different ways you can copy one of the worlds most successful investors, Warren Buffet.

 


Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

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