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.