Companies

Warren Buffett's Preferred Asset Exceeds Holdings in Apple, Bank of America, American Express

Published September 24, 2024

Investment insights can be gleaned from the portfolios of successful investors, with Warren Buffett's Berkshire Hathaway BRK-A being a prominent example. Examining the investments made by this esteemed conglomerate can provide valuable lessons for both novice and seasoned investors alike. The investment choices made by Buffett and Berkshire Hathaway—ranging from whole company acquisitions to minority stakes in public firms—reflect a strategy of long-term value investing.

Berkshire Hathaway's Investment Empire

Berkshire Hathaway Inc., an American multinational conglomerate, is under the adept leadership of CEO Warren Buffett and operates from its headquarters in Omaha, Nebraska. While well-known for its substantial holdings in companies such as Apple, Bank of America, and American Express, the conglomerate's investment strategy is multifaceted, involving complete ownership of a plethora of companies and substantial minority stakes in others.

Berkshire Hathaway fully owns noteworthy enterprises such as GEICO, Duracell, Dairy Queen, BNSF Railway, and Lubrizol among others. Additionally, it has significant minority holdings in major companies such as Kraft Heinz Company, American Express, The Coca-Cola Company, Bank of America, and Apple. Interestingly, Buffett's investment in these assets surpasses the holdings in Apple, Bank of America, and American Express when combined, underscoring the vastness of the firm's portfolio.

Learning from Berkshire's Portfolio

For investors seeking to emulate Buffett's approach, it’s important to note the emphasis on companies that have strong brand value, robust financials, and the potential for continued growth and profitability over the long term. The concentration of high-quality, high-margin businesses within Berkshire Hathaway's portfolio exemplifies this strategy.

While Buffett's exact methods of stock selection and investment might be complex, following the trail of Berkshire Hathaway's holdings can offer insights into potential investment opportunities. Investors would benefit from considering why Berkshire has chosen particular companies and how those reasons align with their investment goals.

Investment, Buffett, Berkshire