The Ultimate and Easiest ETF

The week before last, U.S. News Invested published the updated Warren Buffett portfolio, all 43 holdings current as of the most recent SEC filing on October 10th.  It seems that creating a mirror portfolio of this one from the world's most successful investor would be the ultimate way to create your own and the easiest ETF.  One could use Acorn Advisers to very easily fund the account and then proportion the shares with fractional buying.  And it's not even necessary to invest in all 43 companies.  In fact, I discovered that 95% of all Buffett's holdings are in just 10 companies, an astounding 73% in just one company -- Phillips66!

So for those who are interested, here are the numbers:  Apple 7.3%, American Express 2.2%, Bank of America 3.6%, Coca-Cola 2.6%, JPMorgan Chase 0.9%, Kraft-Heinz 1.1%, Moody's 0.7%, Phillips66 73.0%, US Bancorp 0.9%, Wells Fargo 2.5%.  That right, 95% of all his holdings are in 10 companies, all of them constituting more than 0.5% of his portfolio.  That means all the other 34 companies hold 1/2% or less.  What could be easier?  Open an account with Acorn, buy fractional shares in these 10, and start enjoying the same returns as Buffett, the ultimate ETF.

Note: A quick reminder for your reference that fractional shares were discussed in the October 26th post and Acorn in the October 13th.  Have fun with it!

Invested Advice, rankings and stock market news for investors. Oct. 23, 2019

TODAY'S BIG IDEA The Updated Berkshire Hathaway Portfolio Famed investor and Berkshire Hathaway (ticker: BRK.A, BRK.B) CEO Warren Buffett has become a living legend on Wall Street for his tremendously consistent track record throughout the decades. Buffett has bought and sold his way to becoming the third wealthiest person in the world with a net worth of more than $80 billion. Here’s a look at every stock Warren Buffett owned as of Aug. 14, 2019, according to Berkshire’s Oct. 10 SEC filing. 1. American Airlines Group (AAL). American Airlines Group has shrunk to Buffett’s smallest airline investment after AAL stock dropped 10% in 2019. American has the lowest forward earnings multiple of any of the “big four” airlines at just 5.2. 2. Amazon.com (AMZN). By the time Berkshire invested in Amazon for the first time in 2019, the e-commerce and cloud computing giant was nearly 25 years old and valued at almost $1 trillion. The company generated 49% of all U.S. e-commerce sales in 2018 and captured 5% market share of the total U.S. retail sector last year. – Wayne Duggan Click here to continue.