In this post, I’m going to answer the question if you should invest like Warren Buffett.
So stay tuned.
One of the best investors of all time – Warren Buffett
This guy’s worth over $80 billion.
When you look at investing advice, you think why don’t I invest just like Warren Buffett.
But if you wanted to invest like Warren Buffett, then that means you have to have holdings like Warren Buffett for at least the amount of diversification that he has.
And if you take a look at all of Warren Buffett’s holdings in this, of course, fluctuates and changes time and time again.
This was from August 16, 2019, and start taking a look at the portfolio and holdings. You can check out some of these things. And when you look at this, you’ve got UPS holdings of about $6 million, so got 59,000 shares held.
We also have here Mondalez this one’s got $31 million, 578,000 shares held. If you look at Procter & Gamble, you got about $34 million and 315,000 shares held.
The thing is if you wanted to invest like Warren Buffett, that means you have to have the same amount of shares that he has and the same amount of capital and value.
You can see the percent of the portfolio is minuscule when you look at just the percent of portfolio total of that individual stock. Percent of portfolio (total): 0,03%
He’s got a ton of holdings if you go through these. And they change all the time. He doesn’t have to pay or worry about the electricity going off. He doesn’t have to worry about paying for a cell phone because he’s got enough money.
You might be balancing a budget. You might be looking at how much money I can save to pay for my kid’s college education. It’s a different world and whole different scope.
When someone tells you that you should be investing like Warren Buffett is saying, you should buy the same car that Warren Buffett drives. Or you should buy the same type of education that he had.
If your friend has a Tesla or Warren Buffett in this case, you should probably drive a Tesla. If your friend or someone very successful is driving a Maclaren, you should probably drive Mclaren.
Does that make a lot of sense when you look at it in a big picture scheme of things?
Well, probably not.
That’s because if they have the money and capacity to buy that car, that could be their fun car. That could be a car that they use for work.
Focusing on Trucks and Vans
Let’s look at trucks. Some of these trucks are doing some actual work. There’re different trucks for different purposes.
Then we got vans. Some vans are there for utility or work. Other vans people use to live in those. There are all kinds of different vans out there. And the van for you is not the same van that other people may want. You need to understand there are different points and purposes.
Workout Plans for You
This is what I want you to think about. If I told you The Rock is fit, Michael Phelps is fit, and you have to work out the same way that The Rock does.
Do you have to eat the same way that Michael Phelps does?
No, absolutely not.
That’s because if you did that, you would be crazy work out, and you might not be able to lift the same amount of weights that he can.
You might not be able to eat the same amount of food in one sitting that Michael Phelps does.
Here’s what he eats for breakfast:
- three fried-egg sandwiches with cheese
- fried onions
- 2 cups of coffee
- 3 slices of French toast topped
- 3 chocolate-chip pancakes
- 1 pound of pasta
- 2 large hams
- cheese sandwiches
- white bread
- plus energy drinks
And then for dinner:
- 1 pound pasta
- entire pizza
- more energy drinks
Think about this. That is a huge amount of food, and that is a tremendous workout. And you probably can’t do that workout.
I’m not saying that you can get there, but you’re at different levels. You’re your unique individual. And the minute you start focusing on other things and other people and what’s right for you. You’re trying to figure something out and dream for it. When, in fact, it doesn’t make sense. It’s not the right financial plan.
Making the Right Plan for You
There are financial planners out there that look at your situation and your financial capital and make the right plan for you.
That’s because maybe you don’t have the right risk tolerance that Warren Buffett does. Perhaps you don’t have the same goals or plans in mind. Maybe you don’t have as long to live. Maybe you have a lot more time to live.
Everybody’s risk tolerance is different. It’s not that you can’t pick up great tips, ideas, and insights from a workout that The Rock does or great meal ideas from Michael Phelps. Or even excellent stock investment ideas that Warren Buffett has. It’s not to say you can’t get ideas from it.
But as far as matching and doing precisely what Warren Buffett does, trading, investing the same way – you just can’t do it.
You don’t have the same amount of capital. You don’t have the same risk tolerance. You don’t have the same life to live. There are not as many years in his life as may be in your life.
Maybe you’re 20 right now. And you might have many more years to live, where Warren Buffett is currently 89 years old.
And, of course, everybody’s situation is different and unique. And that’s what I want to get you to think about.
Find answers to these questions:
- What is your unique situation?
- What is your goal?
- What is your purpose?
- What is your risk tolerance?
- What is your risk level?
Don’t attach yourself too tightly or too close to single anyone strategy, investment advice, or person because you are unique. You are special, you are different, and you have your own set of goals when it comes to your lifestyle and financial goals.
Make it your own. Craft a plan of what makes sense for you and look internally into those things rather than to someone else.
He’s got his own goals, methodology, risk tolerance, risk levels, but if you’re attaching yourself too closely or too tightly to the way he invests, you might be setting up yourself for disappointment.
I hope you found this post helpful and insightful.