The billionaire investor Warren Buffett gains only 100,000 dollars a year as a head of investment conglomerate Berkshire Hathaway.
Investors in shares of his company do know very well that the shares of Class A and those of Class B of Berkshire do not provide dividends. It’s all about capital growth.
Robert Miles who follows Buffett’s career for a long time and has written several books on it, each year look over the data from the Massachusetts Commission Securities and Exchange Commission to find out which are the other income sources of the billionaire.
In this process, Miles has learned some lessons from the personal strategy of Warren Buffett’s investment in the stock market.
Buffett claims that 95% of their marital status that amounts to about $ 40 billion, is in shares of Berkshire Hathaway, but according to Miles it is worth to see what Buffett does with his own account, which counts about 1.8 billion dollars.
The latest check up of Miles showed that the largest shares that Buffett possesses, have been all in many popular companies such as Wells Fargo (the share worths about $ 400 million), Johnson & Johnson, Proctor & Gamble, Kraft, Walmart, US Bancorp , General Electric, UPS, Ingersoll-Rand and the oil company Exxon Mobil.
The great increase in his investments last year is in the San Francisco-based Wells Fargo, where he doubled his share from 8 to nearly 15 million shares, taking advantage of the decrease in share prices when U.S. banks were affected by the global financial crisis. Besides, last year Buffett increased his share in Johnson & Johnson (from 4.3 to 4.973 million shares that worth 320 million dollars as of December 30). The investment is made at the bottom of the market in the second quarter. Buffett also obtains personal shares in Wal-Mart ( $ 225 million in December) and Exxon Mobil (28.7 million dollars).
According to Miles, these shares give Buffett an annual dividend of 42 million dollars, which alleviates the effects of the Berkshire policy not to pay dividends.
To be continued…