Warren Buffett‘s holding company, Berkshire Hathaway, has a portfolio worth over $300 billion as of September 30, 2022. This portfolio has outperformed the S&P 500 by 20% in the same year, making it a highly sought-after investment strategy for traders, entrepreneurs, businessmen, and finance enthusiasts alike.
But what exactly is in Berkshire Hathaway’s portfolio? According to Securities and Exchange Commission (SEC) filings, the following are some of the publicly-traded U.S. stocks owned by the company:
- Bank of America
- Bank of New York Mellon
- Itochu (Japan)
- U.S. Bancorp
It’s worth noting that these holdings are as of September 30, 2022, with the exception of a few which are as of later dates in the same year. For instance, BYD is as of December 8, 2022, while Itochu (Japan) is as of November 21, 2022. The market value of Itochu (Japan) is also approximate, as it is calculated using the U.S. trading price.
Now, let’s dive into how Berkshire Hathaway’s portfolio has managed to outperform the S&P 500 by such a significant margin. One reason could be the diversity of the portfolio, with investments in various industries such as technology, finance, and energy. This helps to mitigate the risk of relying on a single industry, as a downturn in one sector could potentially be offset by strong performance in another.
Another reason could be the long-term investment approach taken by Berkshire Hathaway. Rather than focusing on short-term gains, the company looks for undervalued stocks with strong potential for growth over the long haul. This has allowed them to weather market fluctuations and come out ahead in the end.
So, what can we learn from Warren Buffett‘s successful portfolio at Berkshire Hathaway? Diversification and a long-term investment approach are key factors to consider when building and managing an investment portfolio. By keeping a diverse mix of assets and taking a patient approach, it’s possible to achieve strong, consistent returns over time.