Billionaire investor Warren Buffett is getting richer by the minute.
That’s because the Oracle of Omaha’s company Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) has a portfolio full of dividend-yielding stocks.
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The Berkshire portfolio has 34 dividend stocks in total; of those, eight yield dividend returns in excess of 3% annually, according to Buffett’s latest SEC 13F filing on Feb. 14, 2017.
And that’s where Buffett makes the big bucks.
He owns large percentages of these high-yielding dividend stocks and so gets a massive amount of money in return – every year – as steady, streaming income.
During the second quarter of 2017, Buffett is expected to make roughly $6,700 of dividend income — per minute.
Here’s how that math works out…
Warren Buffett’s Wealth of Dividends
Berkshire’s total holdings of dividend-yielding stocks – again, 34 in aggregate – is expected to pay out a combined total of $882,004,712 in Q2 2017, reported FOX News [Friday] morning.
Six companies in particular that Buffett owns are responsible for the bulk of that $800 million-plus sum:
Now, there are 91 days in Q2 2017.
By dividing that combined quarterly payout sum ($882,004,712) by 91, you get $9,692,359 per day.
That’s right – Buffett makes over $9 million every day.
And by dividing that daily sum ($9,692,359) by 1,440 (the number of minutes in a day), you get $6,731 per minute in dividend income.
Of course, Berkshire’s holdings may change throughout the quarter. For example, the hedge fund aficionado may sell some of his dividend-yielding stocks, or he may buy shares in another dividend-yielding company (the latter of which would make him even more money by the minute).
But if Buffett doesn’t do anything with Berkshire’s portfolio in Q2 and these dividend payouts remain the same, then he’ll continue to earn roughly $6,700 every 60 seconds.
Which leaves many Main Street (and Wall Street) investors wondering: How can I do that, too?
Here’s the thing: You probably can’t.
Nor should you try. Because you won’t get the same results.
Money Morning Chief Investment Strategist Keith Fitz-Gerald explained precisely why investors can’t produce Buffett-level returns after Berkshire released its annual shareholders letter on Feb. 25. That’s when Fitz-Gerald caught wind of newbie and expert investors alike scrambling to study its results.
They all wanted to trade like Warren Buffett.
“Simply mirroring what he does will not get you where you want to go,” Fitz-Gerald wrote. Instead, he suggested investors should look to profit from one of these three strategies for steady, reliable income returns of their own…
— Money Morning Staff
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Source: Money Morning