Have you thought about buying a stock of a company but you actually invest in a well curated portfolio of companies, just like a cheaper version of a mutual fund?
Yes, one of these stocks is Berkshire Hathaway (BRK.B). BRK is an investment company owned by Warren Buffett and Charlie Munger, who hand picked all the investment of BRK. That said, if you invest in the stock of BRK, you are investing in all the companies picked by Buffett and Munger- imagine buying a mutual fund managed by the world famous investment gurus with a much lower cost for a long term investment horizon. What a bargain, isn’t it?
As of today, the portfolio of BRK has a total market value of $227 billion. The top 10 holding positions include Apple (AAPL, 44%, largest holding), Bank of America (BAC, 10.85%, second largest), Coca Cola (KO, 8.83%), American Express (AXP, 7.13%), Kraft Heinz (KHC, 5.13%), Moodys Corp (MCO, 3.35%), US Bancorp (USB, 2.4%), Wells Fargo (WFC, 1.7%), Davita Inc (DVA, 1.61%) and Bank New York Mellon Corp (BK, 1.38%). Among all,
BRK has reduced their holdings in USB, WFC, DVA and BK during the year.
If you have read the previous article, you probably know that BRK invested in Barrick Gold a few months ago. It was also the first time ever Buffett invested in gold which accounts for 0.28% of the whole portfolio.
The sectors spread among Tech, Finance, Consumer Products, Transportation, Healthcare, Capital Goods and others. As you can see, Buffett is also heavy on Tech (which he said he wouldn’t invest in a long time ago) and Finance (which has been his favourite).
It is a very diversified portfolio that is exactly like a mutual fund with a difference that Buffett holds his investments in a long term for value. From my point of view, it is a fairly good target for investment as a stock and with relatively low risk if you are a value investor, but of course you should do some research before you invest in it. As of today, the stock has been growing slower than the S&P 500 index, but it’s understandable as BRK only invests in value stocks.
Until then, stay calm and invest with peace.
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Disclaimer: all the content in the newsletter does not serve as financial advice. The data referred in the examples are all historical data and do not guarantee future return. Remember, investment always comes with risks.
