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Each quarter, investors clamor to dissect the quarterly filings of institutional investment managers with at least $100 million in equity assets under management.
These filings are known as SEC Form 13F. The documents tell you exactly what the some of the most sophisticated investors are doing with their money and the money of their clients or shareholders.
One of the most popular 13Fs filed every quarter belongs to the Oracle of Omaha, Warren Buffett. Buffett is the CEO of Berkshire Hathaway Inc. (NYSE: BRK.A), whose stock sells for approximately $327,000 per share.
Buffett is considered the most legendary living investor, amassing an $86 billion fortune over the decades. His secret combines extreme patience and the purchasing of assets that he deems undervalued according to his proprietary intrinsic value calculations.
After examining his latest 13F, something extremely interesting stuck out to me...
In the third quarter, Buffett built a stake in an energy company that is poised to rally in the months ahead.
It's especially noteworthy when Buffett invests today because the market is at or near all-time highs, and Berkshire is sitting on $122 billion of cash.
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Buffett protects that cash and doesn't put it to work unless he's certain it will pay off. In fact, his two rules to investing are:
- Rule No. 1: Don't lose money.
- Rule No. 2: Don't forget Rule No. 1.
The stock Buffett just bought currently trades just under $40 per share.
But in the year ahead, our proprietary rating system - the Money Morning Stock VQScore™ - suggests that it could rally to $60.
Here's all you need to know about this Warren Buffett stock...
Warren Buffett's New Investment for 2020
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.