Imagine youd invested $1,000 in theS&P 500back in January 1965.
Today youd be sitting on a nest egg of more than $190,000.
Now imagine you were abeginning investorwho entrusted $1,000 with Warren Buffett when he acquired Berkshire Hathaway in 1965.
Byinvesting in stocksthe Buffett way, your $1,000 would now be worth $27 million.
Want to invest like Buffett?
Here are five investments to avoid.
When these quarterly reports are released, you hear a lot of hype about the latest Buffett stocks.
But sometimes Berkshire Hathaways investments seem not especially Buffett-like.
Case in point: Berkshire Hathaways recently $570 million stake in data cloud company Snowflakes IPO.
Buffett probably isnt the one who chose Snowflake.
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Hes reportedly given his second-in-commandsTodd Combs and Ted Weschlerfreedom to make investment decisions on behalf of Berkshire Hathaway.
Snowflake is widely believed to be a Combs or Weschler pick.
Bitcoin
Hes calledbitcoinrat poison, squared.
The reason Buffett hates bitcoin and other cryptocurrency: He thinks its worthless.
Did you know?
You cant do anything with it except sell it to somebody else, hetold CNBC.
Then that persons got the problem.
Buffett has repeatedly vowed that hell never own cryptocurrency.
Gold
Buffett has a longstanding bearish take on gold.
Hes not a fan because he says the precious metal doesnt produce income and its usefulness is limited.
Solast months newsthat Berkshire Hathaway had invested in Barrick Gold Corp. (GOLD) sent stock watchers squawking.
Did Buffett finally change his mind aboutinvesting in gold?
Berkshire Hathaway didnt actually buy physical gold.
He believes tech companies often lack a competitive advantage.
He told investors in 2016 at Berkshire Hathaways shareholders meeting heignores them.
Buffetts aversion to most tech stocks and IPOs give credence to the theory that Snowflake wasnt his selection.
Treasury Bonds
Buffett described investing in long-term Treasury bonds as terrible investments at the 2018 Berkshire Hathaway shareholders meeting.
The reason: Say you buy a 30-year Treasury bond that pays you 3% interest per year.
The Federal Reserve aims to keep inflation around 2%.
After taxes, you might be left with 0.5% returns when you adjust for inflation.
What Buffett considered a terrible investment in 2018 has only gotten more terrible.
Withinterest rates historically low, those Treasurys that yielded 3% two years ago are nowhovering around 1.4%.
Penny Stocks
Buffett isnt a fan of buying cheap stocks just because theyre cheap.
So its safe to say thatpenny stocksare the ultimate anti-Buffett investment.
Shares often cost $1 or less, but theres a good reason.
The issuing company often has no proven track record, or its seriously troubled.
He says most people are better off investing in low-cost S&P 500index funds.
The easiest, cheapest way to do so is throughexchange-traded funds (ETFs).
But if youre determined to handpick a portfolio Buffett would approve of, think long term.
Coca-Cola is a yes for Buffett.
Cryptocurrency, not so much.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
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