According to the Bloomberg Billionaire Index, Warren Buffett’s net worth has jumped by $6 billion this year. That brings his total fortune to $148 billion, placing him just behind his longtime friend and Microsoft co-founder Bill Gates, whose net worth sits at $166 billion.
The Power of Berkshire Hathaway
Buffett’s growing wealth is largely tied to the rising value of Berkshire Hathaway Inc. (NYSE: BRK-B), the investment powerhouse that serves as the foundation of his fortune. The company’s stock has climbed just over 4% this year, outpacing the S&P 500’s 3% gain. Over the past five years, Berkshire shares have soared 108%, compared to the S&P 500’s 80% increase.
A long-term investment in Berkshire Hathaway has paid off handsomely. A $10,000 investment in the company 30 years ago would now be worth an astounding $682,000.
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Buffett’s Investment Strategy
Buffett has built his empire by investing in public companies with strong brands that he believes are undervalued. He has been a longtime shareholder of Coca-Cola Co. (NYSE: KO) and previously held Bank of America Corp. (NYSE: BAC). However, he hasn’t always stuck with stocks for the long haul. Apple Inc. (NASDAQ: AAPL) is a prime example. Buffett first bought shares in 2016 but recently decided to unload them.
Beyond stock investments, Buffett has acquired entire companies, often taking them private. His notable purchases include:
- Burlington Northern Santa Fe (2010) – A major railroad acquisition
- Geico (1995) – A move into insurance, a sector he has long favored
- Nebraska Furniture Mart (1983) – A retail investment outside his usual scope
- WPLG (2014) – A Miami-based TV station
Regarding his Geico investment, Buffett once remarked, “It’s the low-cost operator in a field that is very big, and the low-cost operator tends to win over time.”
Why Buffett Loves Insurance Companies
Buffett has a particular fondness for insurance businesses, owning:
- Berkshire Hathaway Reinsurance Group
- National Indemnity Company
- Berkshire Hathaway Specialty Insurance
Explaining his enthusiasm for the industry, he said, “It’s so much fun because you get the money at the start, you know, and then you find out whether you’ve done something stupid later on.”
Holding Cash for the Right Opportunity
Currently, Buffett is sitting on a massive $325 billion in cash. According to a Bloomberg report, this suggests he may be bracing for a major market downturn or is simply waiting for the right investment opportunity at the right price.
Two Blue-Chip Dividend Stocks Dominate His Portfolio
Buffett’s investment portfolio leans heavily on two major dividend stocks, which make up nearly 40% of his holdings. His strategy remains focused on long-term value, a philosophy that has cemented his status as one of the world’s most successful investors.