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Berkshire Hathaway's stock has risen nearly 27 percent a year for the past 36 yeats. For its consistency and profitability, this cornpany, managed by Warren E. Buffett of Omaha, has been amazing.
If you asked Buffett how you, as an individual investor, could go about imitating his spectacularly successful investment strategy, his answer would be: buy shares of Berkshire Hathaway. He happens to be an unusually sensible person, and that is clearly the best answer.
But if you buy or intend to buy other stocks on your own, either one-at-a-time or through a managed mutual fund, there is much that you can leam by studying Buffett's tactics.
Why not just do the obvious and put all your money into Berkshire Hathaway stock? One reason: It's mainly an insurance holding company — Buffett is an authority on insurance. Because of this, the stock has virtually no exposure to many areas of the stock market, such as technology and health care. A second reason: Berkshire has become so enormous that its future performance is handicapped, much like the odds-on favorite in a horse race being forced to carry extra weights. ...

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