Follow Warren Buffett With These ETFs

Follow Warren Buffett With These ETFs

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Billionaire investor Warren Buffett held the annual meeting of Berkshire Hathaway Inc (BRK-A) on Saturday to reveal major new investments. Buffett is famous for his incredible investment ideas.

If you an ardent follower of the investment guru Warren Buffett, you might find his latest suggestions intriguing. Normally, Buffett takes interest in companies trading below what he believes is their intrinsic value. He aims for long-term outperformance and apparently ignores short-term downturns.

Berkshire spent $51 billion on equities in the quarter, and its cash stake dropped more than $40 billion to $106 billion. Berkshire also said first-quarter operating profit was little changed at $7.04 billion, as many of his businesses endured supply chain disruptions caused by COVID-19 variants, the Ukraine invasion and high inflation, per Reuters.

With rising rate worries and geopolitical crisis bringing about uncertainties in the global investment backdrop, many are waiting for the investing tactics of the Oracle of Omaha. For them, below we highlight a few investing strategies.

Invest in Activision-Heavy ETFs

Warren Buffett said on Saturday that Berkshire Hathaway Inc (BRK-A) has taken a 9.5% stake in Activision Blizzard Inc ATVI, and focused on the stake mainly after Microsoft agreed to buy the video game maker for $68.7 billion.

So, ETF investors can play Activision-Heavy ETFs  ProShares On-Demand ETF (OND), Global X Video Games & Esports ETF HERO, VanEck Video Gaming and eSports ETF ESPO and Invesco Dynamic Software ETF (PSJ).

Bet on Energy: Chevron-Oxidental-Heavy ETFs

WTI crude ETF United States Oil Fund, LP USO is up 42% this year as the geopolitical turmoil between Russian and Ukraine aggravated concerns over the energy supply crunch. As a result, Buffett’s Berkshire's portfolio has got a lift from Chevron (CVX), which is Buffett's fourth-largest holding.

The “Oracle of Omaha’s” Chevron investment went up 475.6% from the end of 2021. At the end of the first quarter of 2022, the Chevron investment was worth $25.9 billion versus its value of $4.5 billion at the end of 2021. Chevron pays a 3.6% dividend

The oil giant's shares are up 33.5% this year.Chevron-heavy ETFs likeEnergy Select Sector SPDR Fund XLE andVanguard Energy ETF (VDE)could be bought as long the trend is your friend.

Not only Chevron, Buffett bought $7 billion worth of Occidental Petroleum’s common shares in additional investments last month. “Together with the $10 billion in OXY preferred, Berkshire’s bet on the oil sector is now over $40 billion,” said James Shanahan, a Berkshire analyst at Edward Jones, as quoted on CNBC. Invesco Dynamic Energy Exploration & Production ETF (PXE) is an Occidental-heavy fund to invest.