Yahoo Finance ETFs to Play Buffett's Investment Insights
Warren Buffett is a well-known figure in the global financial world, and it is worthwhile to track his investment portfolio. This is especially important since he exhibits strong conviction in his investment choices and doesn't frequently change them, making it an effective strategy to walk in his footsteps.
At Berkshire Hathaway’s recent annual shareholder meeting, Warren Buffett discussed Berkshire's actions, including selling the Apple AAPL stock and a loss on Paramount (PARA). Let’s present the key takeaways from the meeting.
Buffett Favors Buybacks Over Dividends
Buffett reaffirmed his stance against dividends, preferring buybacks. Berkshire has a solid cash balance which is expected to be used in a more profitable way than paying dividends. “Dividends have the implied promise that you keep paying them forever and not decrease them,” Buffett said in a 2018 interview with CNBC, adding, “we would probably lean toward repurchase,” between the two, per CNBC.w
This puts focus on Invesco BuyBack Achievers ETF PKW. The underlying NASDAQ US BuyBack Achievers Index comprises U.S. securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. The fund added 15.5% in the past six months.
Even After Selling Some Stake, Buffett Favors Apple
For the second quarter in a row, Berkshire’s Apple holdings have fallen. Berkshire’s Apple stake is worth about $135.4 billion now, which would be around 790 million shares, suggesting a decline of 13% in its investment.
The Oracle of Omaha, however, stated that Berkshire Hathaway intends to maintain ownership of its major holdings, such as American Express AXP, Apple and Coca-Cola KO, even after his tenure ends and Greg Abel assumes leadership.
He also mentioned that Apple stands out as a superior business when compared to both American Express and Coca-Cola. This puts focus on Apple-heavy ETF Technology Select Sector SPDR Fund XLK, American Express-heavy ETF Amplify Mobile Payments ETF IPAY and Coca-Cola-heavy ETF iShares U.S. Consumer Staples ETF IYK.
Buffett Likes Powell
Warren Buffett praised Federal Reserve Chair Jerome Powell for his adept management of the economy in recent years. Speaking at Berkshire Hathaway’s annual shareholder meeting, Buffett described Powell as a "very wise man."
However, he indicated that while Powell has control over monetary policy, addressing the growing U.S. deficit requires cooperation from lawmakers. Whatever the case, based on Buffett’s assessment about Powell, we can expect the U.S. economy to stay strong in the coming days.
This should help domestically focused small-cap U.S. ETF iShares Russell 2000 ETF IWM. The fund has added 28.9% over the past five-year timeframe and 15.7% over the past one year.
Buffett Buying Treasury Bills
Berkshire’s cash balance reached a record high of $188.99 billion, up from $167.6 billion in the fourth quarter. He has been enjoying good returns by putting his mountain of cash in Treasury bills, yielding over 5.4%. Buffett previously indicated that he’s been buying three- and six-month Treasury bills every Monday.
In light of the above statement, one can bet on short-term treasury bond ETFs like JPMorgan BetaBuilders U.S. TIPS 0-5 Year ETF BBIP, WisdomTree Floating Rate Treasury Fund USFR and AB Ultra Short Income ETF YEAR. The funds BBIP, USFR and YEAR yield 5.94%, 5.35% and 5.23% annually, respectively.
Renewable Energy Still in a Nascent Phase?
Warren Buffett expressed interest in renewable energy but noted that its development at full scale requires patience.However, Buffett also indicated that solar energy is unlikely to become the sole source of electricity ever.
Greg Abel, who chairs Berkshire's energy business, put stress on the significance of reliability and affordability in energy considerations. This means that ETFs like Energy Select Sector SPDR Fund XLE have a few more years to run.
After Japan, Is Buffett is Bullish on Canada Now?
In recent times, Buffett has bet big on Japan, which led to a surge in Japanese stocks and ETFs. Warren Buffett now suggests that Berkshire Hathaway is considering investment opportunities in Canada. However, Buffett did not disclose details about his investment, such as whether it would be public or private. This puts the spotlight on iShares MSCI Canada ETF EWC, which is off 1.9% past month but has added 6% past year. Compared with the S&P 500, the ETF’s rally is pretty moderate.
AI Scamming to be the Next Big “Growth Industry”?
Warren Buffett warned about the potential rise of artificial intelligence (AI) scamming. Despite admitting his lack of expertise in AI, he commented that the unchecked advancement of AI could result in scams on a huge scale. The need for AI regulations is heightened now. Plus, cybersecurity ETFs like First Trust NASDAQ Cybersecurity ETF CIBR should continue to rule ahead. The fund is, however, up only 3.1% so far this year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
Invesco BuyBack Achievers ETF (PKW): ETF Research Reports
iShares U.S. Consumer Staples ETF (IYK): ETF Research Reports
First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports
iShares MSCI Canada ETF (EWC): ETF Research Reports
Amplify Mobile Payments ETF (IPAY): ETF Research Reports
WisdomTree Floating Rate Treasury ETF (USFR): ETF Research Reports
AB Ultra Short Income ETF (YEAR): ETF Research Reports
JPMorgan BetaBuilders U.S. TIPS 0-5 Year ETF (BBIP): ETF Research Reports
