The five questions asked Warren Buffett before making an investment in the stock market

Warren Buffett is considered one of larger investors in the worldin addition to being the largest shareholder, president and executive director of Berkshire Hathaway. In fact, its investment holding company amounted to Top 10 of more valuable companies in the world. Given this, it was known that the guru is done Five basic questions To evaluate an asset before investing in it.

From the point of view of “business”, These are the three key questions: is it the sector in which it acts or The business of the company-objective something clear and understandable from the perspective of the investor? If the explanations are unclear or excessively complex, it is probably a bad business, does the company have a management historically consistent?, and finally, do you have the business A favorable perspective in the long term?

And, in turn, from the point of view of the managementit is worth asking, does the company have A rationing managementL? Is the “Management” of the company Open and honest with your shareholders?

Berkshire Hathaway generates important yields

Berkshire Hathaway achieved an impressive 16.44% growth in 2025in the face of the negative performance of the S&P 500.

In fact, his company amounted to Top 10 of more valuable companies in the worldsurpassing a Tesla already TSMCthe main chips manufacturer in the world.

The “Market Capitalization” (Market Cap) by Berkshire Hathaway that is to say The stock market value of the company, at 1.13 billion (millions of millions) of dollars and became the most valuable eighth in the world.

Between tips, from 1996 to Friday, March 21, the value of Berkshire Hathaway increased 2,590%, from 42,000 million to 1.13 billion (millions of millions) of dollars. Someone who in 1996 would have invested $ 10,000 in Berkshire could today sell their shares at $ 269,000.

What is the strategy that Warren Buffet adopted lately

Warren Buffet Follow your strategy to continue selling and accumulate effective. Under that position, Berkshire Hathaway promoted a series of movements such as significantly reducing their participation in Appleone of its most emblematic investments.

InBuffett sold 56% of its Apple shares In the first half of 2024 and came from more than $ 133,000 million in assets. This allowed him to double his cash reserves, reaching a record of 334,000 million dollars.

Despite this increase in the available cash, Buffett adopted a more preserved approach. He also reduced his participation in Bank of America, and lowered his exhibition by 34%. Indeed, the actions of Apple and Bank of America fell around 15% and 20% respectively from their November 2024.