Berkshire Hathaway Portfolio Holdings
Berkshire Hathaway is a holding company, which means it doesn’t produce goods or provide a service on its own.
Instead, it generates returns through its subsidiaries and through an ownership interest in other companies. Berkshire Hathaway owns a number of companies outright, and it has a large portfolio of stocks.
Warren Buffett took control of Berkshire Hathaway in 1965. In the years that followed, he carefully curated a portfolio of assets that built wealth for Berkshire Hathaway shareholders.
Examples include technology companies like Apple (AAPL), consumer staples like Kraft Heinz (KHC), energy giants like Occidental Petroleum (OXY), and financial services like Bank of America (BAC).
Buffett may be best-known for his long-standing position in Coca-Cola (KO). It began with a $1 billion stake in 1988 and has since returned roughly 1,800 percent to Berkshire Hathaway’s shareholders.
The entire Berkshire Hathaway stock portfolio was valued at more than $326.7 billion as of March 31, 2022, and it includes approximately 50 separate securities. That figure doesn’t cover subsidiaries like See’s Candies, Geico Insurance, and Dairy Queen.
Overall, Berkshire Hathaway Class A stock has grown more than 6,300 percent since it started trading publicly. Some years, Berkshire Hathaway outperforms the S&P 500. Other years, it falls behind.
However, over time, Warren Buffett’s strategy has proven to be far more effective than relying on the market to rise. Berkshire Hathaway stock has generated a compound annual return of just over 20 percent from 1965 to 2021. The S&P 500’s compound annual return for the same period was 10.5 percent.
When the economy is growing, the S&P tends to outshine Berkshire Hathaway, prompting naysayers to question Buffett’s methods. However, when there is a downturn in the market, Berkshire Hathaway tends to remain steady.
With each new economic cycle, Buffett proves once again that his focus on value over novelty is a reliable strategy for building long-term wealth.
Why Is Berkshire Hathaway So Successful?
Those who prefer a speculative approach to investing tend to choose unproven companies. They buy overvalued stock in unprofitable startups under the theory that the “next big thing” is coming. It’s true that this strategy can be successful from time to time, but it’s a gamble. Whether and when a growth stock might finally pay off is anyone’s guess.
Through Berkshire Hathaway, Warren Buffett focuses on quality over quantity. Each position is carefully considered, and he almost never gets in on the ground floor of a new company.
A notable exception is Buffett’s recent decision to participate in Snowflake’s IPO. The move was so out of character that it got a lot of attention, and the very fact that Buffett made the investment at all was a sign of the company’s potential.
Berkshire Hathaway has a long history of focusing on fundamentals. Buffett waits to invest until a business demonstrates that it is capable of producing profits – and it can be purchased at a reasonable price.
The S&P 500 isn’t nearly as discerning. Essentially, it tracks the ups and downs of 500 large companies that trade on US exchanges. There are no criteria around quality or profitability when it comes to getting a place in the index because the goal of the index isn’t to generate profits. The S&P 500 is neutral – it simply provides a snapshot of the market’s overall health.
What Does Warren Buffett Say About The S&P 500?
Warren Buffett knows that picking profitable stocks is a tricky business. Even with his experience and a large team of expert advisors, it’s not possible to make the right move every time. The stock market is unpredictable, and unexpected events can turn fortunes to dust overnight.
Certainly, Buffett has been more successful than most, but he doesn’t recommend that average investors attempt to emulate him. He has always advised retail investors to put their money into a low-cost S&P 500 index fund instead of attempting to trade individual securities.
Buffett’s faith in the S&P 500’s ability to deliver long-term returns is so strong that his estate plan is centered around the index. He has instructed that 90 percent of the amount his wife inherits after his death be invested in an S&P 500 index fund. Clearly, Buffett considers the S&P 500 a solid investment choice.
S&P 500 vs. Berkshire Hathaway Stock: Which Is Best?
Over time, Berkshire Hathaway has historically outperformed the S&P 500. In the last ten years, the S&P 500 returned 260 percent as compared to Berkshire Hathaway’s 300 percent.
The difference comes in Buffett’s active management of Berkshire Hathaway’s portfolio to ensure that it can withstand market downturns.
Buffett is very careful with shareholders’ funds, and his goal is to protect that wealth at all costs. During the most recent shareholder meeting, Buffett said:
We have an extreme aversion to incurring any permanent loss with your funds… The idea of losing, permanently, other people’s money, people who trust us, that’s just a future I don’t want to have… We wake up every morning and we want to be safer in terms of your eventual investment.
For long-term investors – or those that require a bit more stability than the S&P 500 can offer – Berkshire Hathaway stock is a buy.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.
FAQs
Most investors expect Berkshire Hathaway stock to outperform the S&P 500 over the next five years. Shares of Warren Buffett's Berkshire gained 3.3% in 2022, compared to the S&P 500's loss of 18%.
Does Berkshire Hathaway outperform the S&P 500? ›
Berkshire has a history of outperforming the S&P 500 during recessions, and performing especially well during bear markets, according to data from Bespoke Investment Group. Since 1980, Berkshire shares have beat the broader market over the course of six recessions by a median of 4.41 percentage points.
How does BRK B compare to S&P 500? ›
Berkshire Hathaway Inc. (BRK-B) and SPDR S&P 500 ETF (SPY) have volatilities of 3.71% and 3.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same.
Is it smart to invest in Berkshire Hathaway? ›
We continue to believe that Berkshire Hathaway BRK. A/BRK. B, owing to its diversification and lower overall risk profile, offers one of the better risk-adjusted return profiles in the financial-services sector and remains a generally solid candidate for downside protection during market selloffs.
What stocks are better than S&P 500? ›
Nasdaq 100 has significantly outperformed S&P 500 in terms of performance. Over the past 15 years, Nasdaq 100 has delivered a CAGR of around 16%, while S&P 500 has returned about 8%.
Do most investors beat the S&P 500? ›
The phrase "beating the market" means earning an investment return that exceeds the performance of the Standard & Poor's 500 index. Commonly called the S&P 500, it's one of the most popular benchmarks of the overall U.S. stock market performance. Everybody tries to beat it, but few succeed.
How high will Berkshire Hathaway stock go? ›
Berkshire Hathaway Inc (NYSE:BRKB)
The 2 analysts offering 12-month price forecasts for Berkshire Hathaway Inc have a median target of 370.26, with a high estimate of 377.00 and a low estimate of 363.52. The median estimate represents a +14.59% increase from the last price of 323.11.
Who is Berkshire Hathaway's biggest competitor? ›
Berkshire Hathaway vs competitors
| Company | Founding Date | Revenue |
|---|
| Lincoln Financial Group | 1905 | $16.4B |
| Realty Executives | 1965 | $6.5B |
| R Re/Max Services | - | $3.9M |
| EXIT Realty Partners | - | $1.0M |
12 more rowsBerkshire Hathaway Returns by Year
We believe that Berkshire Hathaway BRK. A/BRK. B, owing to its diversification and lower overall risk profile, offers one of the better risk-adjusted return profiles in the financial-services sector and remains a generally solid candidate for downside protection during market selloffs.
Since Buffett took over in 1965, Berkshire Hathaway has beaten the market 39 out of 58 years. While that's about two-thirds of the time, it may not sound incredibly impressive at first; it's underperformed the market the other 19 years. But that's not the whole story.
Is it better to buy BRK A or BRK B? ›
This difference is often only pertinent for shareholders who take an active role in the company. Nevertheless, because of the voting rights, A-shares are often more valuable than B shares. Some companies even have three or more share classes, in some special circ*mstances.
What is Warren Buffett's most profitable investment? ›
Key Takeaways. Berkshire Hathaway's portfolio's five largest positions are in Apple Inc. (AAPL), Bank of America Corp (BAC), Chevron (CVX), The Coca-Cola Company (KO), and American Express Company (AXP). Apple is Berkshire's largest holding, accounting for 39% of its stock portfolio.
Why Berkshire Hathaway is the best investment you should hold? ›
Its Relative Strength Rating of 78 means it has outperformed 78% of stocks in terms of price performance over the past 12 months. Berkshire Hathaway stock held strong in 2022, making a slight gain compared to a loss of more than 19% for the S&P 500. So far in 2023, BRKB is up nearly 5%.
Why is Berkshire Hathaway so popular? ›
It has a market capitalization of over $715 billion and is the sixth-largest public company in the world. Berkshire Hathaway's success is largely due to Buffett's value investing strategy, and its annual shareholder meetings have become a mecca for value investing proponents.
Should I invest all my money in S&P 500? ›
Legendary investor Warren Buffet once said that all it takes to make money as an investor is to 'consistently buy an S&P 500 low-cost index fund. ' And academic research tends to agree that the S&P 500 is a good investment in the long term, despite occasional drawdowns.
Should I put all my 401k in S&P 500? ›
It's never a good idea to place all your savings in any single investment, even one with as much appeal as an S&P 500 index fund.
Is the S&P 500 the safest investment? ›
History shows us that investing in an S&P 500 index fund -- a fund that tracks the S&P 500's performance as closely as possible -- is remarkably safe, regardless of timing. The S&P 500 has never produced a loss over a 20-year holding period.
What does Warren Buffett say about investing in the S&P 500? ›
Key Points. Warren Buffett has famously recommended index funds as a way to build wealth. He has also proven that even the most basic funds can outperform big Wall Street firms. The S&P 500 index fund is a powerhouse investment that could make you a lot of money.
Why is S&P 500 the best? ›
The S&P 500 Index is considered a gauge of the U.S. economy. It is a broad-based measure of large corporations traded on U.S. stock markets. Passively holding the index over longer periods of time often produces better results than actively trading or picking single stocks.
A prime reason is that the skewed pattern of market returns stacks the odds against investors. Typically, a few high-performing stocks pull the average up, while the majority of stocks under-perform. Thus, buying and owning a few individual stocks will usually lead to poor performance.
What will Berkshire Hathaway be worth in 2025? ›
Wallet Investor estimated Berkshire Hathaway stock value could rise to $397.132 by May 2023 and $546.785 by May 2025. The algorithm-based forecasting service expected the company's share to trade at $692.131 in April 2027. It had no projections for 2030.
How much would $1,000 invested in Berkshire Hathaway? ›
Investing $1,000 in Berkshire Hathaway in December 1972 for $7.50 a share at the time Buffett bought shares could have purchased 133.33 shares. The $1,000 investment would be worth $62,841,899.58 today based on a price of $471,326.03 for Berkshire Hathaway shares today.
What is the future of Berkshire Hathaway B stock? ›
Average Price Target
Based on 2 Wall Street analysts offering 12 month price targets for Berkshire Hathaway B in the last 3 months. The average price target is $356.00 with a high forecast of $377.00 and a low forecast of $335.00.
Is Berkshire Hathaway mostly Apple? ›
Warren Buffett's investment in Apple (AAPL) stock has quickly become the most prominent holding in Berkshire Hathaway's (BRK-A, BRK-B) $360 billion equity portfolio. Berkshire first bought the stock in 2016, and since then Apple has grown to a $110 billion position comprising roughly 40% of Berkshire's stock holdings.
What are Berkshire Hathaway's top 5 stock holdings? ›
Top Warren Buffett Stocks By Size
- Bank of America (BAC), 1.03 billion.
- Apple (AAPL), 915.6 million.
- Coca-Cola (KO), 400 million.
- Kraft Heinz (KHC), 325.6 million.
- Occidental Petroleum (OXY), 211.7 million.
- American Express (AXP), 151.6 million.
- Chevron (CVX), 132.4 million.
- HP (HPQ), 120.9 million.
Large companies - similar industry
| Similar Stocks | VALUEVVV | COMBINED |
|---|
| 5. Synchrony Financial (XXL, US) Consumer Finance | 97 | 92 |
| 6. Medallion Financial (XXL, US) Consumer Finance |
| 6. Medallion Financial (XXL, US) Consumer Finance | 100 | 86 |
| 7. Stifel Financial (XL, US) Investment Banking & Brokerage |
16 more rowsS&P 500 1 Year Return is at 0.91%, compared to -9.29% last month and -1.18% last year. This is lower than the long term average of 6.31%. The S&P 500 1 Year Return is the investment return received for a 1 year period, excluding dividends, when holding the S&P 500 index.
What is the S&P 500 annual return last 10 years? ›
Basic Info. S&P 500 10 Year Return is at 161.0%, compared to 161.9% last month and 195.6% last year. This is higher than the long term average of 112.5%.
What is Berkshire Hathaway return over the last 10 years? ›
Definition of 10 Year Price Total Return
Ten Year Stock Price Total Return for Berkshire Hathaway is calculated as follows: Last Close Price [ 488,024 ] / Adj Prior Close Price [ 171,300 ] (-) 1 (=) Total Return [ 184.9% ] Prior price dividend adjustment factor is 1.00.
(BRK. A) If you wonder which company has the highest share price in the world, here is the answer. Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, has the most expensive stock in the world, with shares trading at over $400,000 each.
Which US stocks to buy now? ›
Best US Stocks
| Stock Name | Ticker | Market Cap |
|---|
| Microsoft Corporation | MSFT | 1.705 T |
| Amazon.com Inc. | AMZN | 1.089 T |
| Tesla, Inc. | TSLA | 642.330 B |
| Johnson & Johnson | JNJ | 432.395 B |
16 more rowsb stock price prediction 2025, then according to stock's chart analysis brk. b stock price can be seen between $380 to $400 in 2025.
Who owns most of BRK B shares? ›
Berkshire Hathaway (NYSE: BRK.B) is owned by 62.57% institutional shareholders, 5.99% Berkshire Hathaway insiders, and 31.44% retail investors. Melinda Gates Foundation Trust Bill is the largest individual Berkshire Hathaway shareholder, owning 77.31M shares representing 5.96% of the company.
Is BRK B preferred stock? ›
BRK. B (Berkshire Hathaway) Preferred Stock.
What is the 10 year return on BRK B stock? ›
| 1 Year | 10 Year |
|---|
| BRK Class B Stock Fund | 1.63% | 10.87% |
| S&P 500 Index* | — | — |
Berkshire Hathaway is so expensive because the stock has never been split. Warren Buffett refuses. In a biography, Buffett explained his reasoning, saying “I don't want anybody buying Berkshire thinking that they can make a lot of money fast.” However, that is the company's class A stock.
Is Berkshire Hathaway a safe investment? ›
Berkshire Hathaway holds a diversified basket of companies in dependable industries. The company's massive cash pile is an additional safety net. The stock's attractive valuation makes it a no-brainer for investors seeking safety.
What was the best investment of all time? ›
The U.S. stock market has long been considered the source of the greatest returns for investors, outperforming all other types of investments including financial securities, real estate, commodities, and art collectibles over the past century.
What stocks does Jeff Bezos own? ›
Jeff Bezos' current positions
| Company | Funding date |
|---|
| Airbnb (NASDAQ:ABNB) | 2011 (Series B) |
| Amazon | 1994 (Founded) |
| Basecamp | 2006 (Series A) |
| Blue Origin | 2000 (Founded) |
11 more rowsMar 29, 2023
9 Best Recession Stocks Of 2023
- The Best Recession Stocks of June 2023.
- Becton, Dickinson and Company (BDX)
- Thermo Fisher Scientific Inc. ( TMO)
- Merck & Company, Inc. ( MRK)
- PepsiCo, Inc. ( PEP)
- CMS Energy Corporation (CMS)
- Ameren Corporation (AEE)
- Xcel Energy Inc. ( XEL)
Berkshire Hathaway has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 buy rating, no hold ratings, and no sell ratings.
What are the benefits of owning Berkshire Hathaway stock? ›
Here are seven perfect reason to add Berkshire Hathaway to your portfolio and never sell.
- You get Warren Buffett as your portfolio manager. ...
- Berkshire's track record speaks for itself. ...
- $4.7 billion in annual dividend income. ...
- A near-record cash hoard. ...
- A healthy capital return plan (despite no dividend) ...
- Strong cyclical tie-ins.
Key Takeaways. Berkshire Hathaway posted a $22.8 billion loss in 2022 due to market volatility. The Oracle of Omaha failed to provide a meaningful outlook on the economy but reiterated faith in American economy.
Is Berkshire a the most expensive stock? ›
Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, has the most expensive stock in the world, with shares trading at over $400,000 each. Berkshire Hathaway's market capitalisation is over $640 billion, making it one of the giant companies in the world.
Does Warren Buffett own S&P 500? ›
Buffett's Berkshire Hathaway portfolio includes two S&P 500 index ETFs -- SPY and VOO. Both ETFs have low costs and have delivered solid returns since inception.
Which stock is doing the best right now? ›
Most Actives
| Symbol | Name | Price (Intraday) |
|---|
| AAPL | Apple Inc. | 180.95 |
| AMD | Advanced Micro Devices, Inc. | 119.69 |
| NVDA | NVIDIA Corporation | 394.89 |
| DISH | DISH Network Corporation | 7.50 |
21 more rowsBerkshire Hathaway holds a diversified basket of companies in dependable industries. The company's massive cash pile is an additional safety net. The stock's attractive valuation makes it a no-brainer for investors seeking safety.
What is the 10 year return of the sp500? ›
Basic Info. S&P 500 10 Year Return is at 161.0%, compared to 161.9% last month and 195.6% last year. This is higher than the long term average of 112.5%.
What is Berkshire Hathaway 10 year returns? ›
Ten Year Stock Price Total Return for Berkshire Hathaway is calculated as follows: Last Close Price [ 323.12 ] / Adj Prior Close Price [ 114.07 ] (-) 1 (=) Total Return [ 183.3% ] Prior price dividend adjustment factor is 1.00.
Whether you're nervous about market volatility or simply want an investment you can count on to keep your money safe, an S&P 500 ETF or index fund is a fantastic choice. This type of investment tracks the S&P 500 itself, meaning it includes the same stocks as the index and aims to mirror its performance.
Who owns the most sp500? ›
One of either Blackrock, Vanguard, or State Street is the largest shareholder in 88% of S&P 500 companies. They are the three largest owners of most DOW 30 companies. Overall, institutional investors (which may offer both active and passive funds) own 80% of all stock in the S&P 500.
Who owns most of the S&P? ›
The S&P 500 is maintained by S&P Dow Jones Indices, a joint venture majority-owned by S&P Global, and its components are selected by a committee.
What company is most like Berkshire Hathaway? ›
Berkshire Hathaway competitors include BlackRock, The Carlyle Group, Howard Hanna Real Estate Services, Allstate and Allegheny Technologies. Berkshire Hathaway ranks 1st in Customer Net Promoter Score on Comparably vs its competitors.
Is Berkshire Hathaway overpriced? ›
Berkshire Hathaway has the highest-priced shares of any U.S. company, and is also one of the largest companies in the world, consistently ranking in the top 10 by market value. Buffett famously resisted splitting Berkshire's shares, something companies normally do to make it easier to trade their stock.
