πŸ‡ΊπŸ‡Έ

What Berkshire Hathaway's Amazon Investment Can Teach Investors

Credit: The Street
Published 5 days ago - Duration: 02:15s

What Berkshire Hathaway's Amazon Investment Can Teach Investors

Berkshire Hathaway , Warren Buffett's company, disclosed that it owns a position worth over $900 million in Amazon Wednesday night.

Jeff Marks, senior portfolio analyst for Jim Cramer's Action Alerts PLUS investing club, used the Berkshire Hathaway investment as a teaching moment for investors who may have too large of a position in a single company.

"From an investment perspective, that's a great point.

And it's actually, you know, you mentioned our Action Alerts PLUS call earlier in this program we actually talked about what happened, what it means for investors if they have a position too large for their portfolio, what it means and what are the impacts of it.

Back in our August conference call from 2018...And we actually used Amazon as an example," said Marks.

"So it's perfect here but really what we kind of guided for is that if you've one position in your portfolio, that is too beholden because it's too large and its daily swings will affect the movements of your portfolio.

If it's down too much one day and portfolio could be down, even though it was an up day.

That might be a sign that you're playing with fire and it might be a sign that you might need to just trim it just to kind of smooth things out.

And, and make sure you're still having the benefits of diversification within your portfolio." Ask Cramer | Get Answers to Your Most Pressing Market Questions

Advertisement

You are here

Recent related videos from verified sources

What You Need to Know About Huawei, Pinterest, Nvidia, Walmart and Amazon 07:39
Credit: The Street - Published 5 days ago 

Buffett's Berkshire Reveals $861 Million Amazon Stake 00:37
Credit: Wochit - Published 6 days ago 

Warren Buffett Stands Behind Kraft Heinz And Wells Fargo 00:35
Credit: Wochit Business - Published 2 weeks ago 

When It Comes To Loss-Making Companies, Warren Buffett Says 'The Jury's Still Out' 00:43
Credit: Wochit Business - Published 2 weeks ago 

Wall Street rises on upbeat jobs report 01:05
Credit: Reuters Studio - Published 3 weeks ago 

Berkshire's Letter Preview: Warren Buffett's Big Tech and M&A Strategy -- ICYMI 03:32
Credit: The Street - Published 3 weeks ago 

Jim Cramer: Why Investors Shouldn't Buy Amazon's 'Artificial Spike' 01:43
Credit: The Street - Published 3 weeks ago 

Jim Cramer's Thoughts on Tesla, Berkshire Hathaway, and Beyond Meat 10:07
Credit: The Street - Published 3 weeks ago 

You might like