Berkshire Hathaway (BRK-B) chair Warren Buffett is known for his value investing. The legendary investor, who made his fortune through investing, is widely followed by market participants.
Berkshire holds several companies. While it has acquired many companies over the last few decades, the last major outright acquisition it made was of Precision Castparts in 2015. At the time, Buffett himself admitted that the deal was expensive.
Publicly traded securities
Along with the companies in which Berkshire holds a 100% stake, it also has a portfolio of publicly traded securities (SPY). While you can’t get exposure to Berkshire’s fully acquired companies without buying Berkshire stock, it could be a worthwhile exercise to see which of Buffett’s public holdings could add value to your portfolio in 2019.
In this series, we’ll look at some of Berkshire’s biggest holdings. We’ll base our analysis on the company’s latest 13F filing in November. Although Buffett doesn’t change his portfolio that rapidly, he may have added or exited some stocks since then. In the last two years, General Electric (GE) and IBM (IBM) have been the two most prominent companies of which Berkshire has sold off its entire stake. In the third quarter, Berkshire added more Apple (AAPL) and Bank of America (BAC) shares.
Apple stock came under pressure in the fourth quarter. Concerns about tariff retaliation in China amid the US-China trade spat have been among those factors weighing on the stock. The weak outlooks provided by several Apple suppliers have also added to the sell-off.
In the next article, we’ll see whether you should follow Buffett into Apple in 2019.