Over the past decade, Berkshire Hathaway (BRK-B) has generated 9.7% compound annual growth rate returns for its equity investors. In comparison, the S&P 500 Index (SPY) has returned 5.8%.
The stock is preferred by institutional investors, mutual funds, and ETFs (exchange-traded funds). Berkshire equity is owned by ETFs that own financials as well as sector- agnostic equities.
These are some of the major sector-agnostic ETFs with stakes in Berkshire:
- the SPDR S&P 500 ETF Trust (SPY)
- the iShares Core S&P 500 ETF (IVV)
- the iShares Russell 1000 Value ETF (IWD)
- the iShares S&P 500 Value ETF (IVE)
The preferred financial
Berkshire will continue to be preferred by ETFs, as the company is expected to grow its earnings per share by 7% to 9% over the next five years. An increase in interest rates will benefit Berkshire’s insurance business, as the company can use the premiums as interest-free capital for other investments.
If Berkshire (BRK-B) continues to outperform the overall index even marginally, ETFs will continue to increase their holdings in the firm.