Warren Buffett: Why the Billionaire Doesn't Want to Buy Stocks Anymore

The casual investor is probably unaware of one of Berkshire Hathaway's biggest strengths.

I was in Omaha for Berkshire's annual meeting, and had the pleasure of chatting with George Washington University law professor Lawrence Cunningham. He's authored several investing-related books, including some about Berkshire and Warren Buffett. In his upcoming book, Berkshire Beyond Buffett: The Enduring Value of Values, makes the case that Berkshire will be just fine in the post-Buffett years.

In this video, I asked Cunningham about the biggest theme he's seen at these annual meetings in the past few years. His answer involves the shift from a couple of decades ago when 80% of Berkshire Hathaway's assets were made up of common-stock investments, and 20% were in operating companies. Today, that equation is exactly the opposite, and therein lies Berkshire's extremely strong position.

This is one reason we recommend buying Berkshire Hathaway
Berkshire Hathaway is one of the stalwart holdings in Motley Fool Stock Advisor, a service where the average recommendation has returned 158% since inception. By comparison, equal amounts invested in the S&P 500 would have returned 54%. Right now, you can try the service free for 30 days, giving you full access to every stock pick -- including two brand new recommendations from David and Tom Gardner on Friday. Click here for more information.

The article Warren Buffett: Why the Billionaire Doesn't Want to Buy Stocks Anymore originally appeared on Fool.com.

Rex Moore owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.