When billionaire investor Warren Buffett makes a move, investors take notice, with many of them mimicking his decisions and buying and selling the same stocks. He has generated massive wealth over the years due to his investing acumen and his long-term buy-and-hold strategy.

But that doesn't mean every stock in the Berkshire Hathaway portfolio has necessarily been a great market-beating investment. In many cases, Berkshire holds safe dividend stocks that can offer consistent payouts, long-term stability, and value preservation -- but not much in the way of great capital gains.

Thus, if you're looking at Buffett's stock purchases as ways to find the next great stock to own, you might be disappointed, as that's not necessarily his strategy or goal when making stock picks. In fact, one of his most beloved and favorite stocks has also made for a laggard investment when compared to the S 500.

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Source Fool.com