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3 ETFs to Invest Like Warren Buffett

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Warren Buffett is one of the greatest and most respected investors of all time. Most investors would like to emulate Buffett's investing style in their portfolios, which is not easy, but we can certainly learn from his strategies.

Berkshire Hathaway (BRK.A) recently reported excellent earnings, sending its class A shares to an all-time high. The stock has increased in value by more than 25,000 times since Buffett took control of the company in 1965, according to Barron's.

The legendary investor favors companies with “economic moats,” which are like "economic castles protected by unbreachable moats.” In simple terms, a moat is a unique competitive advantage that enables a company to outperform others in the same industry over time.

The VanEck Morningstar Wide Moat ETF (MOAT - Free Report) invests in attractively priced companies with sustainable competitive advantages. Domino's Pizza (DPZ - Free Report) and Alphabet (GOOG - Free Report) are among the top holdings in the fund.

In the past, Buffett invested in undervalued companies with great potential, which he called "cigar butts." However, his thinking later evolved to "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

The SPDR MSCI USA StrategicFactors ETF (QUS) aims to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations. Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Nvidia (NVDA - Free Report) are among the current holdings.

Buffett has long recommended that most investors should stick with low-cost index funds. The iShares Core S&P 500 ETF (IVV - Free Report) and Vanguard S&P 500 ETF (VOO - Free Report) charge just 0.03% each, but SPDR Portfolio S&P 500 ETF (SPLG - Free Report) 's new fee of 0.02% makes it the cheapest in the space.

 

Please watch the short video above to learn more.

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