Warren Buffett Says This Investment -- Present in His Portfolio -- Always Wins Over Time. Here's What History Tells Us.

Warren Buffett has wowed us all for quite some time with his smart stock picks and market-beating portfolio. As chairman, he's led Berkshire Hathaway to a more than 19% compounded annual gain over 58 years -- that's compared to a 10% such increase for the S&P 500 over that time period. Buffett believes in buying quality stocks that are undervalued, with the idea that the market will eventually recognize their potential. And he holds on for the long term to benefit.This strategy has won over time, with Buffett scoring major gains from his biggest holding, Apple, as well as longtime favorites such as Coca-Cola and American Express. Today, Berkshire Hathaway's portfolio is worth more than $279 billion. That's compared to a value of about $107 billion a decade ago.Buffett, though, doesn't rely only on individual stocks for gains, and in fact, he says one particular investment -- which isn't an individual stock -- always wins over the long run. He owns this type of asset and encourages other investors to include it in their portfolios, too. Let's find out more and consider whether history supports Buffett's idea.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool