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Morningstar ETF Picks for Buffett and Munger Approach


Berkshire Hathaway’s annual shareholder meeting is coming up this weekend and investors will be hanging on every word from Warren Buffett and Charlie Munger.

Morningstar analyst Robert Goldsborough says investors can use ETFs to implement the strategies and ideas of the Berkshire brain trust.

“As Berkshire’s annual meeting nears, now is an appropriate time to pay tribute to Munger and to some of the core investment principles that he has espoused,” Goldsborough writes. [ETFs to Mimic Warren Buffett’s Portfolio]

Munger focuses on easy-to-understand businesses, and his guiding principles are preparation, patience, discipline, and objectivity.

“When practiced correctly, these attributes should result in buying great businesses at good prices and keeping one’s portfolio turnover low,” Goldsborough notes. [Morningstar ‘Wide Moat’ ETF Soaks Up Warren Buffett’s Approach]

The analyst offers five ETFs for investors looking for a diverse basket of the kind of companies Munger and Buffett like to invest in.

  • iShares Dow Jones Transportation Average (IYT)
  • Vanguard Consumer Staples ETF (VDC)
  • Financial Select Sector SPDR (XLF)
  • Vanguard Dividend Appreciation ETF (VIG)
  • SPDR Dow Jones Industrial Average (DIA)