3 Popular Sectors Warren Buffett Largely Avoids
If you've ever wondered why Wall Street pays so much heed to Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett's investment activity and words of wisdom, simply take a look at his company's latest annual report. Although Buffett and his investment team have been more or less par for the course with the benchmark S&P 500 over the past decade, Berkshire Hathaway's per-share market value has outperformed the S&P 500, inclusive of dividends, by more than 2,700,000% over the past 55 years. That's why investors' ears perk up when Buffett speaks.
However, what you might not realize about the Oracle of Omaha is that diversification isn't his thing. Buffett has spent much of his investing career focusing on a small number of sectors, such as consumer staples and financials, with the latter being his absolute favorite.
This means Buffett tends to avoid investing in a number of widely popular sectors. Let's take a closer look at three of those sectors and dive into Buffett's likely reasoning for avoiding them.
Source Fool.com
