Everyone knows that Warren Buffett is one of the greatest living investors. The guy's not known as the "Oracle of Omaha" for nothing. But while shares of his Berkshire Hathaway holding company look relatively cheap in terms of their price multiples, the actual stock price might be a stretch: Berkshire's A shares (BRK-A) currently go for approximately $130,000 a pop, while the B shares (BRK-B) will set you back roughly $4,330 apiece.
The good news is that you can get more affordable access to Buffett and his collection of subsidiaries and equity holdings -- a lineup that recently included Moody's
Ariel Focus (ARFFX), for example, recently had roughly 6% of its assets plunked down on Berkshire B shares. The fund rounds out its portfolio with the likes of Carnival
If those funds don't provide quite enough Buffett for you, no worries. In Motley Fool Champion Funds, we've recommended a fund that packs roughly 17% of its assets into Berkshire Hathaway. And this fund, too, can be had (via an IRA) for a mere $1,000.
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In the meantime, adding "access" to the list of winning traits that make investing in a world-class portfolio of mutual funds is a great way to begin -- and continue -- your career as an investor. In addition to the likes of Berkshire, funds also open the door to areas of the market that might lie outside your circle of investing competence.
If you're looking to dial up your exposure to, say, equities plucked from the world's developing economies, or even industries in your own backyard that you may not fully understand -- biotech and nanotech come to mind -- terrific funds led by stock pickers who do understand them can be had, provided you know where (and how) to look.
Funds with high expense ratios and rookie managers should be avoided, for example, as should most funds that pack tons of assets into narrow areas of the market. Quick and easy diversification is another built-in advantage of well-chosen mutual funds.
With its recommendations outperforming the market, Champion Funds is a great place to start your search. You can get all of its recommendations with a no-obligation 30-day free trial. Here's more info.
This is adapted from a Shannon Zimmerman article originally published on Aug. 15, 2006. It has been updated.
Rex Moore is an analyst with Motley Fool Stock Advisor. At the time of publication, he owned shares of Berkshire Hathaway and Microsoft. The Motley Fool owns shares of Berkshire Hathaway. Berkshire, Moody's, and Microsoft are Motley Fool Inside Value recommendations. Berkshire and Moody's are Stock Advisor picks. You can check out the Fool's strict disclosure policy by clicking right here.