I read this column on Morningstar.com on the stocks that make up the portfolio of Berkshire Hathaway (BRK.A) with great interest. Some observations:
- The portfolio is greatly concentrated. There are only 32 stocks in the entire portfolio and just 10 names make up over 90% of it.
- Berkshire has a large cash hoard at $43 billion (at 30% of assets) consistent with Mr. Buffett’s assertion that he is finding very few attractive securities that he can buy.
- It is easy to see that Mr. Buffett prefers companies with sustainable competitive advantages. Six out of the top ten holdings have “wide moats” according to Morningstar.
- The top three holdings are Coca-Cola (KO), American Express (AXP) and Procter & Gamble (PG), all Dow Jones components.
- Home Depot (HD), another Dow component, is a recent addition to the Berkshire portfolio.
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1 Canadian Capitalist // Mar 9, 2006 at 9:49 pm
Notes From The Berkshire Hathaway Annual Report
It is always interesting and informative to read the Berkshire Hathaway (NYSE: BRK.A) annual report and this year Mr. Buffett did not disappoint. I only wish that all the annual reports that turn up in our mailboxes at this time…
2 Notes From The Berkshire Hathaway Annual Report // Mar 2, 2008 at 7:42 pm
[...] See Also: Notes from the 2004 Berkshire Hathaway Annual Report and The Warren Buffett Portfolio. [...]
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