Collection: Warren Buffett - #134 'Why Buys Small Amount Of Some Stocks'


Video Link: https://youtu.be/EY3rvD9E0yk


In this episode, Warren Buffett was asked regarding on some readings that said he buys at least one share of every company on the New York Stock Exchange to get the annual report. Is that true or is that a thing of the past? And if it is true, how does he keep track of all that information?


In this episode, you’ll learn:

  • Is it true that Warren Buffett buys at least 1 share of every company in NYSE?

  • Why did Warren Buffett buys small amount of great many companies?

  • Where did Warren Buffett keeps all his small holdings of stocks?

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[Transcript]

(Source: https://buffett.cnbc.com/video/1999/05/03/morning-session---1999-berkshire-hathaway-annual-meeting.html)

~ Please visit the site above for full video of Berkshire Hathaway Annual Meeting.

AUDIENCE MEMBER 00:08

Good morning Mr. Buffett, Mr. Munger. My name is Gary Rastrum (PH) from right here in Omaha.


My question is, somewhere I thought I’d read that you buy at least one share of every company on the New York — or on the exchanges — to get the annual report. Is that true or is that a thing of the past? And if it is true, how do you keep track of all that information?


WARREN BUFFETT 00:35

Well, it’s got an element of truth in it. Many years ago, I did buy one share of a great many companies. And I’d get these dividend checks for eight cents and 10 cents.


And I used to pay my bridge losses by endorsing these checks by the hundreds and giving them to the people who’d just won a dollar. And they — and then no one asked me to bridge games anymore.


So I have adopted a new program where I buy a hundred shares of a great many companies. Actually, I buy them in my foundation so I don’t go crazy at income tax time. And I probably, just as a guess, would have a couple hundred companies. So, it isn’t every company, by a long shot.


But there are at least several hundred companies where I want to be a registered shareholder, and — to make sure I get the mailings promptly. And I do keep those around. And I very — even after I lose interest, I very seldom sell one. So, I’ll just keep buying more.


And I’ll only buy a hundred shares in something I might want to keep track of, but I’ll probably buy a hundred shares in all of their competitors and — so that I keep reading about those companies as well.


It does pay to have a flow of information come in over the desk.

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