원문 보기
Dear viewers, welcome from the floor of the Frankfurt Stock Exchange to Hnes 5. With me is stock market strategist Eurich Hanke from börsiana.info. It's great to have you here. Our topic today is Warren Buffett, the stock market legend. The old master has once again made headlines with his newsletter for shareholders, and you've taken a look at his performance.
Well, he's released his annual report, and as every year, when you look at it over a long period, it looks sensational: 19.0%. He's achieved 19.0% per year since 1965. The S&P 500, the large, broad US index, has only managed 9.7%. However, if you compare it to recent years, you can see that the performance has declined significantly.
This year, he could n't beat the index either. Based on the book value of his subsidiaries or his company stakes, the share price has risen very, very sharply. We're at an all-time high of 260,000. A large number. The stock was never split. B-stocks, which private investors can certainly afford, are at $270, even at their yearly high.
Based on book value, Buffett hasn't performed so well. And what does this reveal about his approach? Well, what we can see is that some of his investments might not even bear his signature anymore. Buffett is known for saying he only invests in stocks of companies whose business models he understands.
He recently bought a significant amount of Apple stock and has continued to buy more. He also invested in IBM earlier, and he's still at a loss with IBM. This already suggests that his two designated successors are operating behind the scenes. They already manage a considerable amount of capital, which he has clearly defined.
This doesn't really reflect his style. For example, Buffett is someone who still uses a company cell phone. He recently said in an interview that he has only ever written one email himself in his life; he has his secretary write all the others. And since last year, the annual general meeting, which is such a big deal, is now streamed on Yahoo Finance.
This year it will be streamed again on May 6th. And that also shows a bit that it does n't really fit with this old, established gentleman who was born in 1930. What investments are there that might also point to the future? Well, besides Apple, it's primarily the airlines, and I can completely agree with that.
Of course, it's not a completely risk-free investment, but airlines are very, very cheap, and Buffett has invested in the four major US airlines: American, Delta, Southwest, and United Continental. He's invested in the four major US airlines, and you can see that, for example, with Lufthansa. The stock also has its quirks and its risks, pension liabilities, the business is relatively difficult to predict, there's overcapacity, there are the low-cost carriers, and so on, but nevertheless, the airline stock, for example, is very, very cheap, and that's an area where Buffett has now also entered.
He's had Netflix, this private jet company, in his portfolio for a long time, but he also bought it outright. Which, yes, there were perhaps also bad investments. Well, the biggest bad investment that then turned into a great investment was Berkshire Heath. Berkshire Hathaway was originally a textile company, and Buffett clearly states that there were many investments from it, which he then used to build his investment holding company.
What I find so appealing about this year's shareholder letter is that he also addresses investments that aren't performing so well. General Re is one such example. Geiko is another insurance company he invested in, and he acquired both of them completely. General Re has its difficulties in the micro-income environment.
He also turned his back on Munich Re and S&P 500 for precisely these reasons, and he has to hold on to them, having bought them outright. Then there's a shoe manufacturer he also mentions, with which he achieved practically no return. His railroad company, however, has performed well, and he highlights that this time, which I find very positive.
What about ETFs? Yes, exactly, he recommends them to private investors. That's the fifth point, and my fifth point from Hanke's five. He's in the "private investors" filter because he simply believes that ETF managers are n't worth their money because they very rarely beat the index. On the other hand, yes, ETFs are a good solution.
He himself has said, or rather, he said before, that if he were no longer alive, then what he hadn't donated from his fortune should be invested in ETFs, preferably in the S&P 500, a nice broad index. I can also say to private investors: if you do n't have the time, then by all means invest in index funds.
If you do have the time, then perhaps you should rather invest in individual stocks, just as Buffett did. As I describe in my book, I dedicate a chapter to Buffett, where you can follow how he does it step by step. So, thank you very much for the insights from Warren Buffett. I am Hanke, the stock market strategist from börsianer.info. Thank you for watching and see you soon on Inside Wirtschaft.
Comments 0