The Big Screen: The Buffett Way
In a muddled market, many fund managers are handing their shareholders' money to one of Wall Street's savviest and stodgiest stock pickers, Warren Buffett.
Companies aren't earning as much as they used to, but their shares aren't cheap either. So, growth managers trolling for fast-growing shops and value managers hunting bargains are left wondering where they can invest their shareholders' money. Some members of each camp, which usually have precious few picks in common, are carrying big stakes in Berkshire Hathaway (BRK.B), the portfolio of businesses bought by Buffett.
Judging by his annual letter to shareholders filed last week, Buffett isn't expecting boffo gains from stocks over the next decade, but that kind of temperance is finding an audience these days. This week's Big Screen looks at funds with the biggest bets on Buffett, and we find a diverse audience, using data from Chicago research house Morningstar.Value managers have often had a taste for Buffett's approach, given his heavy focus on cheap valuations and insurance stocks. But with the tech-laden Nasdaq Composite off more than 61% over the past two years, growth managers are paying more attention to valuations and sinking some money into the Oracle of Omaha's picks.
|Owning The Oracle, If Not Oracle
Buffett is the Oracle of Omaha, and these funds like his style
|Fund||Percentage of Assets in Berkshire Hathaway||3-Year Annualized Return|
|(FLEPX)Deutsche Flag Equity Partners||4.8||2.5|
|(JGVAX)Janus Global Value||4.7||N/A|
|(TGIGX)TCW Galileo Income + Growth||4.5||14.2|
|(FIDAX)John Hancock Financial Industries||3.4||1.9|
|Source: Morningstar. Returns through March 12.|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV