Be Like Buffett and Build Your Portfolio Like This
For decades, Warren Buffett's Berkshire Hathaway has outperformed the S&P 500, and it hasn't been by being overly aggressive or by chasing the latest growth stock. Instead, his strategy has been much simpler -- essentially, finding quality businesses with strong financials and growth prospects.
And there's one more ingredient, too. While Berkshire holds many stocks, only a handful of investments account for the bulk of the portfolio. In his latest letter to shareholders, Buffett said, "It just takes a few winners to work wonders." Investors should take heed of that advice and do the same: load up on the stocks they feel strongly about and have a smaller position in others, for the sake of diversification.
Two stocks that investors should consider as potential pillars to build around now are Alphabet (NASDAQ: GOOG) and UnitedHealth Group (NYSE: UNH). Although they aren't in Berkshire's portfolio, they are Buffett-type stocks.
Source Fool.com
