Published on 26 Nov 2023 on Insider Monkey via Yahoo Finance
Warren Buffett and Corporate Insiders Love These Stocks
In this piece, we will take a look at the stocks that both Warren Buffett and insiders love. If you want to skip our introduction to Warren Buffett, his latest portfolio changes, and his firm, then take a look at Warren Buffett and Corporate Insiders Love These Stocks: Top 5 Stocks.
For anyone who even briefly follows the stock market, Warren Buffett is no stranger. His success in the stock market and the ability to pick out a handful of stocks among the thousands that change hands daily has made Mr. Buffett one of the richest people in the world. He makes his investments through the financial holding company Berkshire Hathaway. Berkshire's investments are not limited only to publicly traded companies. Instead, the firm also owns private businesses, and every quarter, it generates revenue from these investments.
The nature of Berkshire's income statements makes it necessary for the firm to take out sizeable stakes in at least some stocks that are part of its portfolio. This is because since Berkshire is not a hedge fund, it does not engage in traditional trading strategies such as leveraged puts or calls. Neither does it buy stocks simply to sell them later at a higher price. Instead, Berkshire's business model works by first investing in businesses that are revenue generators themselves, or sizeable and well established companies that can pay out dividends.