Why does Warren Buffett love 'prefs'?

By Deputy editor Tim Bennett Feb 28, 2013

Tim Bennett

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Warren Buffett regularly buys billions of dollars' worth of preference shares. Tim Bennett explains why, and how you can add them to your portfolio.


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  • 1. Johnny from Donny

    (28 February 2013, 03:44PM)  Complain about this comment

    Can you buy a collective fund that contains preference shares only? Can it be funded with regular monthly payments and not a lump sum and put it in an isa wrapper?

  • 2. Willem de Leeuw

    (05 March 2013, 07:54PM)  Complain about this comment

    @ Johnny: Not anymore, AFAIK. There used to be an Aviva fund but they closed it as they felt the market had shrunk to too small a size. Though in the US you'll have more luck e.g., there are prefered stocks ETFs e.g., PowerSares PGX and iShares PFF.

    However, there are some investment trusts that have pref holdings. Shires (SHRS - think FTSE100 dividend payers) and Aberdeen Smaller Companies (ASCH - think FTSE250) spring to mind (note Shires' largest holding is ASCH...). There are at least two others but I'm struggling to find them at the moment.

  • 3. Martin

    (08 March 2013, 04:33PM)  Complain about this comment

    Hello Mr. Bennett,

    I would like to as you whether you can one day make a video tutorial about house prices? I do not necessarily believe that house prices are reflected solely on supply and demand basics. At the end of the day lot of UK banks lending money in mortgages and lot of banks end up in bad debt because of that. So, it does looks to me as if the banks wanted to keep the house prices as high as they possibly can. And if they do, how do they do it. If you know the answer can you perhaps explain it to me/us?

    Thank you Martin

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