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WBuffett has written 1 entries since joining The Inflationist - Making Money in Stocks, Bonds, Forex, Commodities, Agriculture

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May 03
Sunday

Warren Buffett Investment Index | Investing Like Warren Buffett

Filed under Dow Jones, Stocks

If one were to invest $1900 with Warren Buffett 44 years ago when one was 25 years of age, at age 69 that amount would now stand at $7,053,000 - compounding at an annual rate of 20.3%. Although most of this outstanding performance are outside of his investment in stocks (instead through the core business of Berkshire Hathaway insurance business), it would be safe to say that he applies the same standards on stock picking. Instead of putting money with anyone whose long term track record is unproven, why not follow the foot steps of our legendary investment Oracle.

After going through the 2008 Annual Report of Berkshire Hathaway, we have selected all the stocks in Warren Buffett’s portfolio which have fallen below Buffett’s purchase price(and excluded stocks trading above what Buffett paid for). We then replicated Buffett’s portfolio with our virtual $40,000 in The Inflationist Challenge, buying each stock in equal proportion to the total portfolio value. We call this the Warren Buffett Investment Index (WBI), designed to track the performance of Buffett’s picks and to leverage on his investment talent. We have no doubt this basket of stocks will outperform the index over time - and since we paid less than what Buffett did, we should outperform Buffett himself! (zero analysis time and effort on our part, but maximal upside) Continue…

No. Shares Company Bought Cost Now Profit/Loss
339 COP 5-2-2009 $42.50 $70.79 $9,590.31
72 JNJ 5-2-2009 $52.60 $63.88 $812.16
378 KFT 5-2-2009 $23.50 $34.90 $4,309.20
130 SNY 5-2-2009 $28.75 $33.34 $596.70
57 RUKN.VX 5-2-2009 $27.48 $47.20 $1,124.04
8 TSCO.L 5-2-2009 $340.50 $398.75 $466.00
267 USB 5-2-2009 $17.96 $25.35 $1,973.13
Cash in Bank $110.12
Portfolio change since 1.1.2009 47.21%

Transaction History

Trade Company Code Quantity Price Date
Buy USB 267 $17.96 5-2-2009
Buy TSCO.L 8 $340.50 5-2-2009
Buy RUKN.VX 57 $27.48 5-2-2009
Buy SNY 130 $28.75 5-2-2009
Buy KFT 378 $23.50 5-2-2009
Buy JNJ 72 $52.60 5-2-2009
Buy COP 339 $42.50 5-2-2009

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