gfp927z
1 month ago
>>> What Does Berkshire Hathaway Own?
Motley Fool
By Frank Bass
Updated Jan 28, 2025
https://www.fool.com/investing/how-to-invest/stocks/what-does-berkshire-hathaway-own/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=4afc7ef3-7684-46ef-95cb-904f48908c12
Key Points
Berkshire Hathaway has $290 billion in 46 companies, focusing on long-term success.
Over 70% of its portfolio is in just six stocks, including Apple and American Express.
Berkshire reduced stocks by $133 billion but still holds $325 billion in cash.
What does Berkshire Hathaway (BRK.A -0.45%)(BRK.B -0.59%) own? Shares in a surprisingly small number of companies, as it turns out. Warren Buffett's Nebraska-based holding company has $290 billion invested in only 46 publicly traded companies. Read on to find out more about the Oracle of Omaha’s holdings.
Berkshire Hathaway is known for its outstanding return on investments. If you'd bought Berkshire Class A stock when Buffett took over the company in the mid-1960s, your return through 2023 would have been about 4,380,000%.
The return is even more impressive when you consider that Berkshire has accomplished it with relatively few investments. Instead, Buffett focused on a long-term buy-and-hold strategy, buying stocks in well-managed companies with a good chance of succeeding and holding them over the long term.
As Buffett once put it in a letter to his shareholders, "Never count on making a good sale."
Still, Buffett hasn't totally sat on his hands over the last year. Berkshire has been trimming its holdings lately. Berkshire sent a shot across the bow of Wall Street, reducing its stock holdings by $133 billion in the first nine months of 2024.
According to the company's Form 13F, Berkshire has been a net seller of stocks over the last six quarters. Meanwhile, its cash holdings have grown to $325 billion, more on the sidelines than Berkshire has ever reserved.
The increasing amount of cash held by Berkshire, however, doesn’t mean it's getting out of the stock-picking business. Around 70% of the company's portfolio is invested in just six stocks.
Major Berkshire holdings
1. Apple
Apple (AAPL 5.18%): Buffett has joked that Berkshire is a tech company simply because of the massive number of Apple shares it owns. At the end of 2023, Berkshire held more than 915 million shares of the tech giant, with an estimated value of $168 billion -- more than five times the value of any other holding and almost 6% of the company.
Even so, the company trimmed its Apple holdings in the fourth quarter of 2023, selling about 1%. The pace of selling accelerated rapidly during the first nine months of 2024, as Buffett reduced his Apple holdings by two-thirds to an estimated value of $71.1 billion.
Despite the sales, Apple is still Buffett's largest holding, making up almost 25% of the Berkshire portfolio.
2. American Express
American Express (AXP 4.19%): Through the first nine months of 2024, American Express accounted for 15.3% of Berkshire's assets, making it Buffett's second-largest holding. It's another financial stock that Buffett has touted over the years, largely because it benefits from both facilitating transactions and loaning money.
The financial giant does especially well when the economy is growing, but its focus on well-off consumers -- who are less likely to change their spending when the economy isn't doing so well -- helps it to thrive in most economic climates.
Shares of the bank soared in 2024, rising 58.4% on strong earnings per share (EPS) growth and the addition of about 3 million credit cards to its already robust network.
3. Bank of America
Bank of America (BAC 3.35%): Berkshire reported cutting almost one-quarter of the 1 billion shares of Bank of America stock that it owned at the end of 2023. Buffett has been a believer in bank stocks for many years, and Bank of America's size and scale have made it an attractive stock for investors.
Even though the banking industry as faced headwinds from charge-offs rising and high interest rates putting a damper on loan demand, the bank is still Berkshire's third-largest holding, with shares valued at $34 billion. As inflation slows, however, the bank may see a rebound from consumer spending even as competition intensifies.
4. Coca-Cola
Coca-Cola (KO -2.01%): The Atlanta-based beverage giant is another one of Buffett's longest-held positions. Buffett has made it clear he doesn't have any plans to sell Coca-Cola stock; the Dividend King has proven its resilience, even as inflation prompted many consumers to curb their grocery spending.
Buffett's affinity for Coca-Cola stock isn't just professional; he described himself as "one-quarter Coca-Cola" to Fortune in 2015, claiming the beverage accounts for 25% of his daily caloric intake. It's another example of one of his wise investment maxims: Buy stock in companies whose business you understand and appreciate.
Berkshire held $24.4 billion of Coca-Cola stock, or 9.3% of its outstanding shares.
5. Chevron
Chevron (CVX 1.53%): With a few exceptions, the oil and gas industry has fallen on hard times. In the 1980s, the sector made up almost 30% of the S&P 500; these days, it hovers around 3%. Despite the uncertainty prompted by a transition to low-carbon fuels, Buffett has increased his holdings in Chevron, betting that the energy industry will recover from a rough few years.
As of the third quarter of 2024, Berkshire owned about 118 million shares of Chevron, a slight drop from the previous year but still almost 6.3% of its entire portfolio and almost 7% of Chevron's outstanding shares. Chevron is the second-largest oil company in the United States.
6. Occidental Petroleum
Occidental Petroleum (OXY 3.72%): One of two energy stocks owned by Berkshire, Occidental is heavily focused on upstream production, which makes it highly susceptible to falling crude oil prices. It also reported $24.1 billion in net debt, a not-inconsiderable sum even for a major oil company. In addition, disruption caused by the Russian invasion of Ukraine and Middle East tensions have failed to make a substantial dent in the global supply.
Buffett's bet on Occidental, however, is looking smarter by the day. An increasing global appetite for oil and a lack of exploration make it possible that there will be a gap between supply and demand.
Buffett owns about $15.1 billion in Occidental stock, more than 28% of its outstanding shares. He picked up 8.9 million additional shares in the week before Christmas 2024 as the oil company's stock sagged 24% for the year.
Berkshire Hathaway Holdings, Jan. 15, 2025. Source: CNBC.
Company Symbol Holdings Stake Price Value Portfolio %
Apple AAPL 300,000,000 2.00% $236.85 $71,055,000,000 24.50%
American Express AXP 151,610,700 21.50% $293.30 $44,467,418,310 15.30%
Bank of America BAC 766,305,462 9.99% $45.11 $34,568,039,391 11.90%
Coca-Cola KO 400,000,000 9.30% $61.07 $24,428,000,000 8.40%
Chevron CVX 118,610,534 6.60% $153.14 $18,164,017,177 6.30%
Occidental Petroleum OXY 264,178,414 28.20% $51.30 $13,552,352,638 4.70%
Moody’s MCO 24,669,778 13.60% $452.81 $11,170,722,176 3.80%
Kraft Heinz KHC 325,634,818 26.90% $28.51 $9,283,848,661 3.20%
Chubb CB 27,033,784 6.70% $257.71 $6,966,876,475 2.40%
Davita DVA 36,095,570 44.00% $153.40 $5,537,060,438 1.90%
Itochu Corp. 8001:TYO 118,331,800 7.50% $46.62 $5,516,698,752 1.90%
Mitsubishi 8058:TYO 358,492,800 8.90% $15.71 $5,633,555,710 1.90%
Mitsui & Co 8031:TYO 250,044,600 8.40% $19.40 $4,851,233,056 1.70%
Citigroup C 55,244,797 2.90% $71.40 $3,944,478,506 1.40%
Kroger KR 50,000,000 6.90% $59.12 $2,956,000,000 1.00%
VeriSign VRSN 13,289,880 13.80% $207.08 $2,752,068,350 0.90%
Visa V 8,297,460 0.40% $307.71 $2,553,211,417 0.90%
Amazon AMZN 10,000,000 0.10% $218.94 $2,189,400,000 0.80%
Sirius XM Holdings SIRI 117,468,573 34.60% $20.83 $2,446,870,376 0.80%
Marubeni Corp. 8002:TYO 141,000,200 8.50% $14.16 $1,996,281,050 0.70%
Mastercard MA 3,986,648 0.40% $504.67 $2,011,941,646 0.70%
Sumitomo Corp. 8053:TYO 101,210,400 8.40% $20.59 $2,084,272,000 0.70%
BYD Co. BYDDF 54,200,142 4.90% $32.02 $1,735,488,547 0.60%
Aon AON 4,100,000 1.90% $349.51 $1,432,991,000 0.50%
Capital One Financial COF 9,100,000 2.40% $175.29 $1,595,139,000 0.50%
Ally Financial ALLY 29,000,000 9.50% $34.19 $991,510,000 0.30%
Charter Communications CHTR 2,821,879 2.00% $334.89 $945,019,058 0.30%
Liberty Live Series C LLYVK 10,917,661 17.20% $66.48 $725,806,103 0.30%
Nu Holdings NU 86,438,997 1.80% $10.95 $946,507,017 0.30%
T-Mobile US TMUS 4,672,000 0.40% $211.30 $987,193,600 0.30%
Domino’s Pizza DPZ 1,277,256 3.70% $402.33 $513,878,406 0.20%
Liberty Formula One Series C FWONK 7,722,451 3.50% $91.23 $704,519,205 0.20%
Louisiana-Pacific LPX 5,964,793 8.50% $105.09 $626,840,096 0.20%
Heico Corp Class A HEI.A 1,049,687 1.30% $177.92 $186,760,311 0.10%
Liberty Live Series A LLYVA 4,986,588 19.50% $64.59 $322,083,719 0.10%
Atlanta Braves Holdings Series C BATRK 223,645 0.40% $36.10 $8,073,585 0.00%
Diageo DEO 227,750 0.00% $118.23 $26,926,883 0.00%
Jefferies Financial Group JEF 433,558 0.20% $71.48 $30,990,726 0.00%
Lennar Corp Class B LEN.B 152,572 0.50% $124.33 $18,969,277 0.00%
Liberty Latin America Series A LILA 2,630,792 6.50% $6.51 $17,126,456 0.00%
Liberty Latin America Series C LILAK 1,284,020 0.80% $6.48 $8,320,450 0.00%
NVR NVR 11,112 0.40% $7,845.22 $87,176,085 0.00%
Pool Corp POOL 404,057 1.10% $326.40 $131,884,205 0.00%
SPDR
S&P 500 ETF Trust SPY 39,400 0.00% $580.49 $22,871,306 0.00%
Ulta Beauty ULTA 24,203 0.10% $418.23 $10,122,421 0.00%
Vanguard S&P 500 ETF VOO 43,000 0.00% $533.89 $22,957,270 0.00%
Other Berkshire holdings
The six stocks above make up more than 70% of Berkshire's total holdings -- but there's more. Near the end of 2024, Berkshire held billion-dollar stakes in another 19 companies, ranging from consumer staples to technology stocks. Here are some smaller holdings:
Kraft Heinz (NYSE:KHC): Buffett admits that the purchase of Kraft Heinz stock initially didn't quite work out as hoped. The company's stock fell 9% in 2023 and another 18% in 2024, even as the S&P 500 rose.
Still, Berkshire hasn't walked away from the company that provides staples ranging from Kraft Mac and Cheese to Maxwell House, and there's hope for the future. It's overhauling its logistics structure to save $2.5 billion by the end of 2027 and had already identified about $1 billion in potential savings.
Moody's (MCO 2.29%): Best known as a ratings agency, Moody's has been a part of Berkshire's portfolio for almost a quarter-century. The company has little major competition outside of S&P Global and Fitch Ratings, giving it a huge advantage and immense pricing power.
Moody's has everything that Buffett searches for in an investment: a competitive edge, strong management, a leading position, excellent profitability, strong recurring revenue, and a high free cash flow. Not including dividends, Berkshire's stake in Moody's is up more than 4,600% from its reported cost basis.
Mitsubishi (MSBHF -0.24%): On the surface, a Japanese trading house might not be one of the first investments you think about when you consider options for Berkshire Hathaway. But it's a big component of Buffett's portfolio, which now holds about 8% of the conglomerate.
Why? Easy. Like other large Berkshire holdings, Mitsubishi has been in business for a long time (since 1870), indicating stability. It's a bargain, with shares trading at roughly nine times trailing 12-month earnings. And finally, it's incredibly diversified, owning almost 1,700 companies in 10 industries, spreading risk better than most exchange-traded funds (ETFs).
Mitsui & Co. (MITSF -0.49%). Buffett increased his holdings in Japan's five biggest trading houses in 2023, with Mitsui becoming his 10th-largest holding. It's one of five sogo shosha (trading houses) Buffett first bought in 2020. The company recently raised its net profit estimate for the fiscal year, based on asset sales and a promising outlook for its liquefied natural gas (LNG) business.
Like Mitsubishi, Mitsui is a diversified giant that owns companies involved in chemicals, steelmaking, life insurance, construction, banking, engineering, and even brewing. Berkshire has said it hopes to increase its stake to 9.9% of each of the five major trading houses, just shy of the country's 10% approval threshold for foreign investment.
Smaller Berkshire investments
Using "small" to describe billion-dollar holdings would be laughable in almost any other context, but the sheer size of Buffett's largest holdings almost reduces these holdings to a rounding error.
Although Apple is one of the ultimate tech stocks, Buffett has also dedicated a significant amount of cash to a couple of other tech-focused companies. Berkshire has:
$2.2 billion invested in Amazon (AMZN 7.26%), holding a miniscule 0.1% of the company’s outstanding shares.
$2.7 billion in VeriSign (VRSN -1.31%), accounting for 13.8% of the company.
Besides Mitsui and Mitsubishi, Buffett also held major stakes in:
Marubeni Corp. (MARUY 1.41%), with $2 billion in stock, about 8.5% of outstanding shares.
Itochu Corp. (ITOCF 0.21%), with $5.5 billion, about 7.5% of shares.
Sumitomo Corp. (SSUM.F 0.0%), with $2.1 billion in shares, about 8.4% of outstanding shares.
Other major investments in financial stocks include:
$3.9 billion of Citigroup (C 5.02%) stock, about 2.9% of outstanding shares.
$2.6 billion in Visa (V 0.47%), 0.4% of the company.
$2 billion in Mastercard (MA 0.8%) stock, or 0.4% of outstanding shares.
$1.6 billion of Capital One (COF 6.83%), 2.4% of the company.
Buffett has made several investments in media centered on:
Liberty Formula One Series C (FWON.K 0.61%), $704.5 million or 3.5% of outstanding shares.
Liberty Live Series C (LLYV.K 2.04%), $725.8 million, about 17.2% of the company.
Liberty Live Series A (LLYV.A 2.31%), $322.1 million, or 19.5% of outstanding shares.
Liberty Latin America Series A (LILA -2.67%), $17.1 million, or 6.5% of the company.
Liberty Latin America Series C (LILA.K -3.29%), $8.3 million, or 0.8% of outstanding shares.
Sirius XM Holdings (SIRI 1.58%), with $2.4 billion in holdings, or 34.6% of the company’s outstanding shares.
It's also worth noting that Buffett has only one major healthcare holding, DaVita (DVA -0.39%), a dialysis provider that controls more than one-third of the U.S. market. The Denver-based company focuses on treating end-stage renal disease, an affliction that is becoming more common as the U.S. population ages. Buffett held more of DaVita's shares than any other stock, with $5.5 billion invested in 44% of the company's outstanding shares.
What companies could Buffett buy in the future?
It's hard to predict which stocks Berkshire Hathaway might add since Buffett favors very long-term buy-and-hold positions. The Oracle of Omaha tends to favor companies that have been around for a very long time -- like a century, in the cases of American Express and Coca-Cola.
Having said that, there may be a few options in areas where Buffett has focused, such as finance, energy, and consumer staples:
U.S. Bancorp (USB 4.4%) is one-quarter the size of Bank of America. It has $74.9 billion in market capitalization, making it the fifth-largest U.S. bank. Unlike its larger siblings in the banking industry, it was relatively unscathed by the 2007-09 financial crisis. It has a decent dividend yield of almost 4.2% and trades at 14.7 times this year's expected earnings.
Buffett values stable companies with predictable revenue, which means Enbridge (ENB -4.08%) might be a good fit if he decides to add to Berkshire's energy holdings. The Canadian pipeline and utility company reports that 98% of its earnings come from cost-of-service arrangements and long-term contracts, which means it's not affected by oil and gas prices.
If Buffett is searching for an established, well-run company with a lengthy history, he might consider adding IBM (IBM 0.66%) shares to the Berkshire portfolio. True, Big Blue struggled over much of the last decade, selling off low-margin units for cash that it then spent on buybacks rather than business improvements. The company appears to be stabilizing, though, buoyed by investments in AI that helped its shares climb 44% when including reinvested dividends.
The bottom line on companies Berkshire Hathaway owns
Past performance is no guarantee of future results. Even so, a 4,384,748% return over a lifetime of investment isn't something to dismiss. The vast majority of investors could do worse than following Buffett's example of investing in stable, well-run, established companies that focus on core businesses.
gfp927z
2 months ago
>>> HEICO Corporation (HEI): A Bull Case Theory
Insider Monkey
by Ricardo Pillai
April 24, 2025
https://finance.yahoo.com/news/heico-corporation-hei-bull-case-132232800.html
We came across a bullish thesis on HEICO Corporation (HEI) on Substack by Bulls On Parade. In this article, we will summarize the bulls’ thesis on HEI. HEICO Corporation (HEI)'s share was trading at $242.70 as of April 23rd. HEI’s trailing and forward P/E were 59.93 and 57.14 respectively according to Yahoo Finance.
Heico Corporation (HEI) represents one of those rare investment gems that quietly compounds value over decades, eschewing flashy narratives for disciplined execution and relentless focus on niche dominance. Founded in 1957 in Hollywood, Florida, Heico started modestly as a maker of aerospace components. But it was in the 1990s, under the stewardship of the Mendelson family—Laurans, Larry, and Victor—that the company’s real transformation began. Laurans Mendelson, now Chairman, saw the potential to specialize in high-margin, low-competition aerospace and defense niches, laying the groundwork for what is now a $36 billion market cap powerhouse. Heico’s rise has been anything but meteoric; it’s the product of a slow, steady strategy built on consistency, operational excellence, and a laser focus on where it can be indispensable.
The company operates in two primary segments: the Flight Support Group (FSG), which designs and manufactures FAA-approved aftermarket aircraft parts, and the Electronic Technologies Group (ETG), which produces specialized electronics for aerospace, defense, and industrial applications. While FSG serves as the steady cash generator, giving airlines cost-effective, high-quality alternatives to OEM parts, ETG caters to defense contractors and government agencies with advanced, often mission-critical electronics. Heico’s strength lies in its ability to dominate carefully selected niches, where it can build long-term customer relationships and face limited competitive pressure. This niche-first strategy is supported by a robust acquisition engine—Heico has completed over 70 acquisitions since the '90s, all small, profitable businesses that slot seamlessly into its ecosystem without requiring massive integration overhauls. The approach is surgical, not scattershot, and the results speak for themselves.
What truly sets Heico apart, however, is its capital allocation. With a net debt-to-EBITDA ratio now down to 2.06x from 3.04x a year ago, the company demonstrates a prudent approach to leverage. Rather than indulging in aggressive debt-fueled expansion or flashy shareholder payouts, Heico channels its cash into expanding its core operations, funding R&D, and making disciplined, accretive acquisitions. It pays a token dividend—just $0.22 annually, yielding under 0.1%—but this is by design. The management team, led by the Mendelsons, prefers to reinvest excess capital to drive compounding returns over the long haul, and given their track record, it’s hard to argue with the approach.
Heico’s most recent earnings for Q1 fiscal 2025, ending January 31, underscored the strength of this strategy. Net income jumped 46% year-over-year to $168 million, or $1.20 per diluted share, while revenue climbed 8% to record levels. FSG was the standout, delivering 15% revenue growth and a 35% increase in operating income, driven by 12% organic growth and smart acquisitions. ETG, while facing temporary headwinds from inventory destocking, remains well-positioned with a strong backlog and pipeline. Importantly, operating cash flow remains robust, ensuring ample liquidity for continued M&A activity. Management has reiterated its bullish outlook, highlighting a healthy acquisition funnel and broad customer demand across both segments.
Of course, the one point that might give investors pause is valuation. With shares trading around $260, Heico commands a trailing P/E of 64 and a forward P/E of 55—premium territory by any measure. Analysts expect 13.4% annual EPS growth and 10.3% revenue growth over the next few years, and the stock's average price target of $270 suggests modest upside. Still, Heico’s PEG ratio of 3.32 reflects a quality premium more than speculative froth. For investors focused on long-term compounding and business quality, this valuation may be justified. The company’s nearly five-decade dividend history and consistent earnings expansion lend further credibility to its durability.
In essence, Heico isn’t trying to be the next big disruptor—it’s content being the steady performer, the business that just works. It’s not going to make headlines, but it will likely continue doing what it has always done: find defensible niches, dominate them quietly, allocate capital smartly, and let the results speak. In a market saturated with hype and volatility, Heico offers something rare—reliability, predictability, and patient compounding. For those willing to embrace the boring brilliance of a business built for the long haul, Heico might just be the kind of quiet giant worth owning.
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