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📈Invest Like Buffett: ETFs the Oracle of Omaha Would Love

🏆 Buffett’s Playbook: The ETFs That Mirror His Winning Strategy

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Today marks a significant milestone as we celebrate the 100th issue of ETF UNO! We are truly grateful for your ongoing support and engagement, which have played a crucial role in shaping this newsletter into what it is today. As we commemorate this achievement, we are excited to announce upcoming changes to enhance your ETF investing experience further.

Celebrate the 100th issue milestone

Today marks a significant milestone as we celebrate the 100th issue of ETF UNO! We are truly grateful for your ongoing support and engagement, which have played a crucial role in shaping this newsletter into what it is today. As we commemorate this achievement, we are excited to announce upcoming changes to enhance your ETF investing experience further.

InvestWise, your favourite ETF knowledge series, will transition from a bi-weekly format to a weekly one, providing fresh, actionable content each week.

We are excited to introduce a new series under the InvestWise banner, Legendary Portfolio. This series will help you envision an ETF portfolio inspired by some of the greatest investing legends in history. Who better to kick off this series than Warren Buffett, the Oracle of Omaha?

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Warren Buffett's Investing Philosophy🏆

Warren Buffett's annual letters to Berkshire Hathaway shareholders reveal a surprisingly straightforward philosophy:

  • Value investing is central to Warren Buffett's approach. He seeks companies priced below their intrinsic value.

  • Long-Term Investment: Hold onto your assets for years or decades to enable compounding to work effectively.

  • Quality Business: Invest in companies with durable competitive advantages (economic moats).

    One of Warren Buffett’s key investment strategies is moat-based investing

  • Focus on Simplicity: Stick to industries and businesses he understands.

  • Conservative Management: He favours companies with conservative, shareholder-friendly management teams that allocate capital wisely and avoid excessive debt.

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Value investing is similar to buying a dollar bill for 50 cents. Unlike many value investors who search for cheap stocks, Buffett prioritises "wonderful companies at fair prices" over "fair companies at wonderful prices."đŸ„‡

Building Warren Buffett’s ETF Portfolio📊

While Warren Buffett primarily invests in individual stocks via Berkshire Hathaway, we can imagine how his principles translate into a carefully curated ETF portfolio. We've selected five ETFs that we believe align perfectly with his investment philosophy:

1. Vanguard S&P 500 ETF (VOO)

If there's one ETF that would be the cornerstone of Buffett's portfolio, it's VOO. Buffett has repeatedly advised ordinary investors to invest in low-cost S&P 500 index funds. VOO is the perfect vehicle for this.

Even though VOO is smaller than its similar player SPY in terms of assets under management and average volume, its lower expense still aligns perfectly with the long-term horizon investment strategy.

2. Vanguard Value ETF (VTV)

Given Buffett's value investing roots, VTV would be a natural choice as it provides exposure to large-cap U.S. value stocks - companies trading at lower prices relative to fundamental measures like earnings and book value, exactly the kind of opportunities Buffett has historically sought.

3. iShares Russell 1000 Value ETF (IWD)

IWD would appeal to Buffett's value investing philosophy while offering slightly different exposure than VTV. It includes more mid-cap companies and uses different methodologies to identify value stocks, providing additional diversification within Buffett's core principles.

4. VanEck Morningstar Wide Moat ETF (MOAT)

MOAT is tailor-made for Buffett's investment style. It focuses exclusively on companies with significant competitive advantages (“economic moats") - a concept Buffett has popularised and used throughout his investing career.

5. iShares MSCI USA Quality Factor ETF (QUAL)

QUAL targets companies with high-quality metrics such as high return on equity, stable earnings growth, and low financial leverage. This ETF embodies Buffett’s preference for buying outstanding companies at reasonable prices.

Building Your Own Buffett-Inspired Portfolio📈

Warren Buffett's investment philosophy has stood the test of time, offering a reliable blueprint for building wealth. While he is famously a stock picker, his principles of value investing, focusing on quality businesses, and maintaining a long-term horizon can easily be applied to ETF investing.

While we've selected these ETFs based on Buffett's principles, remember that the key to successful investing isn't just picking the right investments and having the right mindset. Buffett's greatest strength isn't his stock-picking ability (though that's certainly impressive), but rather his emotional discipline and patience.

As we celebrate this milestone and look forward to weekly InvestWise articles, this weekend's reading gave you insight and inspiration. Now's the perfect time to join if you're not already part of the ETF UNO community. Subscribe today for valuable insights, entertaining reads, and practical knowledge to elevate your investing journey.

Enjoy this weekend’s readings!

DISCLAIMER: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.

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