Buffett

[Plane]

Since it was disclosed that Warren Buffett‘s Berkshire Hathaway now has nearly $11 billion in shares of IBM, many in the media, including the Wall Street Journal, are speculating about why  Warren Buffett might suddenly be reversing his stance on technology stocks.

You may remember that Buffett is famous for shunning technology stocks — mostly because he has smartly avoided things he doesn’t understand well. As a deep value investor, understanding a company’s operations as well as its management’s particular skills and intentions are key. That has always been difficult in tech where technologies are disrupted constantly and management turnover is high.

But all of the headlines you have read about Buffett changing course on tech stocks may miss an important point. Take a look at Berkshire’s portfolio of publicly-traded equities below prepared by Forbes chief statistical editor, Scott DeCarlo.


http://www.forbes.com/sites/schifrin/2011/11/23/berkshire-hathaways-dividend-obsession/

[Xavier_Onassis]

Buffett's strategy has always included holding companies with decent dividends. Tech stocks are beginning to pay more in dividends than previously,and Buffett is investing in them for this reason.

The Sequoia Fund (SEQUX) is designed to follow Berkshire Hathaway stock, and comes very close, if you reinvest its sizable dividends. The advantage is that you can buy any amount of SEQUX you wish above $5000 ($2500 for IRAs). One share of BRK-A will cost $110,525 at a minimum.