Berkshire Hathaway is one of the most admirable company in this world, it started out as a textile company before Warren Buffet turned it into a conglomerate holding company. It holds stakes in many big names like Coca Cola, IBM, MacDonald, Gillette and American Express so on. Over the last 5 decades, Berkshire Hathaway averaged a compounded return of close to 20% for shareholders!

Only in our dreams can we build another Berkshire Hathaway, however as individual investors we are actually building up our own holding company too, a portfolio filled with partial stakes in outstanding companies.

Often when looking at stocks, we are so focus in analyzing each of them that we forget to look at the big picture. I noticed that many writers explain a lot about their individual stocks, but they miss out on how their whole portfolio is performing, like what’s the portfolio’s overall financial ratios? …