Buffett Might Have $55 Billion In Cash But Watches His Step Before He Invests Says Mary Buffett

Finance expert and New York Times bestselling author Mary Buffett, talked about the investment strategies of the ‘Oracle of Omaha’, Warren Buffet on CNBC’s ‘Street Signs’. She explained how even an ordinary person with limited monetary resources can develop the ability to reap huge financial returns. Warren Buffet the CEO and Chairman of Berkshire Hathaway Inc. (NYSE:BRK.A).

Warren Buffett is known for his ability to pick the good stock from the not-so-good. Mary Buffett said that it is better to prefer companies whose performance can be predicted over a course of 10 to 15 years.

“If you are not going to be a stock picker and devote your life like he [Buffett] has, invest in the S&P 500. […] Even though you are not going to get spectacular returns, you will get returns that are nice over a long period of time,” she added.

Mary Buffett’s personal advice to investors is to educate themselves about the type of risk they will be comfortable while investing even though they may have a stock broker or a financial advisor to do the work. She cited the example of Warren Buffett and his returns from Berkshire Hathaway Inc. (NYSE:BRK.A)’s Q2 results.

“[…] He is sitting on $55 billion in cash and cash equivalents. You know he is itching to buy something, but he is waiting again just like he did in the late nineties when the prices were just too high,” Marry Buffett added.

Warren Buffett is the Chairman, President and CEO of Berkshire Hathaway Inc. (NYSE:BRK.A), which wholly owns GEICO, Dairy Queen, Helzberg Diamonds, to name a few, and owns parts of American Express Company (NYSE:AXP), The Coca-Cola Company (NYSE:KO), Wells Fargo & Co (NYSE:WFC) -which is one of the biggest banks in the World– and International Business Machines Corp. (NYSE:IBM). The Omaha based multinational conglomerate which manages a number of subsidiaries in a variety of business posted its Q2 earnings recently. Its net income saw a growth of 41 % as it reached $6.4 billion during Q2 this year against $4.5 billion for the same quarter last year.

Disclosure: none