3 Ways You Can Beat Warren Buffett in the Stock Market
He's called the Oracle of Omaha for good reason. Warren Buffett -- all-around investing genius and founder of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) as we know it -- has the stock-picking track record to support that unofficial title. While his conglomerate may have gotten off to a slow start coming out of 2020's pandemic-induced market plunge, its share price is up nearly 24% year to date, while the S&P 500 (SNPINDEX: ^GSPC) has risen by just under 21%. That's a big difference when you're comparing a buy-and-hold portfolio to an index-based benchmark. Plenty of investors would be thrilled with that sort of edge. Beating the market is tough to do!
And yet, it's not crazy to believe you can not only beat the market, but perhaps even beat Buffett at his own game. The trick lies in successfully doing what Berkshire Hathaway is mostly unable to do, and doing what Buffett doesn't particularly like to do. Here's a look at the three biggest things you can do differently than Buffett in your investing strategy.
Berkshire Hathaway's portfolio has certainly evolved from its early, value-oriented days. For instance, its biggest single stock holding right now is Apple (NASDAQ: AAPL) -- a company that Buffett might not have even dreamed of investing in a couple of decades ago (though Buffett may not have made the Apple buy call on his own). Software company Snowflake (NYSE: SNOW) is another relatively curious addition to Berkshire's collection of stocks, in that it's quite unprofitable and will remain so for a while.
Source Fool.com