Berkshire Hathaway, the holdings company that Warren Buffett helps run, has some very clear favorites when it comes to stocks. In fact, about 58 percent of the over $100 billion in holdings is in just four different stocks.

Wells Fargo is the company’s top holding right now. They are the largest bank in the United States, and now that the financial crisis is well behind us, they are continuing to grow in size. Over the past year, they’ve increased in price by about 25 percent. There has been some ups and downs during this time, but the general trend has been upward. For both investors and short term traders alike, this is a good thing. It shows predictability, and it show long term promise. These things appeal to everyone.

Taking advantage of this is really easy. When the stock is in a confirmed uptrend, even day traders can profit off of this most of the time since the stock is so predictable right now. Binary traders especially can profit, and because the stakes are low here with high profits, it is an easy way to supplement your other positions--even in a very short term such as with 5 minute timeframes if you wish to do this.

The second biggest holding of Berkshire Hathaway--and their most well known--is Coca Cola. This one has been in the news recently because Buffett’s company has upped their stake in the company recently. This was perfect timing since Coca Cola has acquired the energy drink company Monster and Keurig Green Mountain, the coffee company and coffee machine maker. Over $16 billion has been invested in this company, and they’ve gone up about $3 in the past year, despite some roller coaster type movement. Still, just with Buffett’s influence, the company looks like it will keep going up now that these acquisitions are finalized. Many experts believe that the company will go up about 10 percent in price over the next year. Again, Coca Cola is attractive to investors and traders alike because of their predictability.

Binary options allow you to make big profits off of small stakes. And you can minimize your risk by segmenting your trading. Instead of putting several billion dollars into the company and waiting, you can invest $100 a few times per day, you can make 75 to 80 percent in returns depending upon the broker you use. With as little as $300, you can make $240 per day if your trades are well timed. Over the course of a year, assuming you trade 150 times that year, three successful trades per day equals $36,000 in profits. Even cutting that in half is $18,000, which is a very good year with only a hundred dollars in risk at any single moment.

Of course, this isn’t for everyone. But for those individuals that do not want to risk a lot of cash at once and still maintain high profits, this is a good choice--especially if they are able to time their entry into markets correctly. This is a difficult thing to learn, and no one is perfect at it, but you can get much better at it with practice. For serious traders, following big money can be helpful. Warren Buffett is the biggest name in finance that there is, and the fact that he’s focused so much money on these two companies has attracted a ton of attention. But, there’s a reason why this has happened, and it definitely deserves our attention. Whatever your trading strategy might be, the Buffett backing is something that should be given heed, even if it is only to pique your curiosity.