Warren Buffett has built his fortune by investing in high-quality businesses with strong competitive advantages, reliable earnings, and disciplined management.
While replicating the Oracle of Omaha's exact portfolio is nearly impossible, Australian investors have an easy way to apply his principles with the Betashares Global Quality Leaders ETF (ASX: QLTY).
This ASX exchange traded fund (ETF) provides Aussie investors with exposure to a diversified portfolio of global businesses that meet strict quality filters. These are high return on equity, low debt, and solid earnings stability. In other words, the kind of businesses that Warren Buffett would likely give a thumbs up.
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Why this ASX ETF fits Buffett's investment style
Buffett isn't interested in speculative stocks or short-term trades. Instead, he seeks businesses with enduring competitive advantages, strong pricing power, and the ability to generate growing profits over the long term. That's exactly what Betashares Global Quality Leaders ETF aims to deliver.
The fund invests in a carefully selected basket of companies from developed markets worldwide, filtering for quality metrics that align closely with Buffett's philosophy.
This means investors get access to established, well-run businesses that can generate consistent returns—without having to hand-pick stocks themselves. Among its holdings are the following stocks:
Visa Inc. (NYSE: V)
Warrren Buffett has long been a fan of Visa and holds a significant stake in the payment giant. The company benefits from a wide economic moat, thanks to its dominant position in digital payments, strong brand recognition, and powerful network effects. Visa doesn't lend money like a bank, which keeps its business model relatively low-risk while still raking in billions in transaction fees.
Meta Platforms (NASDAQ: META)
While Buffett has traditionally avoided most tech stocks, he made an exception for Apple (NASDAQ: AAPL), and there's arguably a case to be made for Meta Platforms. It owns some of the world's most valuable digital real estate—Facebook, Instagram, and WhatsApp—giving it an enormous reach and a highly profitable advertising business. Its ability to generate massive cash flows and invest in new opportunities like artificial intelligence makes it a strong quality contender.
Netflix (NASDAQ: NFLX)
Netflix is a business with a powerful brand and recurring revenue. It dominates the streaming industry and has successfully transitioned from a high-growth disruptor to a cash-generating media powerhouse. Its strong pricing power allows it to steadily increase subscription fees over time. With billions of people still shifting away from traditional TV, Netflix remains in a prime position for long-term growth.
The Coca-Cola Company (NYSE: KO)
One of Buffett's most famous investments is Coca-Cola. It has been in his portfolio for decades. Its powerful brand, global distribution network, and consistent demand make it a textbook Buffett-style stock. Even during recessions, people continue to buy Coca-Cola products, making it a resilient, cash-generating business—exactly what long-term investors look for.
Foolish takeaway
For Australian investors who want to apply Buffett's principles without stock-picking, Betashares Global Quality Leaders ETF offers a great solution.
While no ASX ETF can guarantee Buffett-like returns, it certainly is positioned well for long term outperformance.
