What Warren Buffett Does: If He's Not Picking Stocks, What Is He Doing?
Lots of investors want to be like Warren Buffett. His holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has outperformed the market over many years, with a compounded annual gain of 19.8% from 1965 to 2022 vs. the S&P 500's 9.9%. That's a staggering difference.
But believe it or not, Buffett doesn't call himself a stock picker. His approach to investing revolves around something else, and he claims that this strategy is what has led to his market-beating performance.
Let's back up a minute and discuss what Warren Buffett does. He's a money manager for a holding company. Through Berkshire Hathaway, he invests other people's money.
Source Fool.com