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A Simple Buffett-Inspired Portfolio You Can Build With Just $1,000
The Motley Foolยท2025-10-23 00:05

Core Insights - The article discusses how to create a mini portfolio inspired by Warren Buffett's investment strategies, highlighting his successful track record and the potential for individual investors to replicate his approach [1][2][4]. Company Overview - Berkshire Hathaway, led by Warren Buffett, has a market capitalization of $1,060 billion and has generated a compound annual growth rate of nearly 20%, significantly outperforming the S&P 500 [2][3]. Investment Strategy - The current portfolio of publicly traded U.S. stocks owned by Berkshire Hathaway is valued at over $300 billion and includes more than 40 stocks, alongside numerous wholly-owned companies [4]. - The article suggests that individual investors can start a similar portfolio with just $1,000 by selecting six specific stocks that reflect Buffett's investment philosophy [6]. Selected Stocks - Apple (AAPL): Berkshire's largest holding, valued at $69.8 billion, represents over 23% of its portfolio, with a gain of 524% since the initial investment in 2016. Current share price is around $249 [7][8]. - Bank of America (BAC): Accounts for more than 10% of Berkshire's portfolio, with a 17% increase this year and a dividend yield of 2.14%. Current share price is approximately $51.50 [9]. - Coca-Cola (KO): Fourth largest holding, with a 3.04% yield and a 9.4% increase this year. Shares trade at about $68 [10]. - American Express (AXP): Represents nearly 22% of outstanding shares, valued at $51.3 billion, with a share price of about $340 and a 15% increase in 2025 [12]. - Chevron (CVX): An actively traded holding with a 4.5% yield, currently priced around $153 and up 6% this year [13]. - Nucor (NUE): A steel manufacturer with a current share price of about $133, up almost 14% this year, with additional shares purchased this year for about $850 million [14]. Portfolio Cost - The total cost to purchase one share of each of the six selected stocks is approximately $995, leaving a small amount for incidental expenses [15].