Berkshire Hathaway Lives On

Portfolios can always be a surprise in terms of stock selection and their market weighting. First, lemme say I own Berkshire for what’s largely static,  70 percent resting in Apple, American Express, Bank of America and Coca-Cola. Some 60% of invested assets here, Apple is at 22% of investments followed by American Express at 18%. 

This is a largely live-by-the-sword, die-by-the-sword investment construct.  I’ve reached it at times, too. But don’t boast about it. Sooner or later something will disconnect and go wrong. (Wish ‘em luck and pesetas.) I’m heavy in Berkshire, too. Citigroup is relatively small here at $218 million. 

In Appaloosa, a $7 billion fund, nearly all growthies, you find 22% in Alibaba and Amazon.  (Nobody’s very bashful). But, nobody really tries to explain their picks with research back-up. What’s wrong with citing some facts for your picks? 

Citadel,  is another smallish fund, holds Berkshire at 24% of assets. The remainder is distributed in growthies each weighted under 5%. (I’m not learning anything new on portfolio structure.) 

Tudor, a $15 billion fund is broadly diversified in growthies, but 1% positions don’t exactly make a splash. One percent in Apple, Amazon and Microsoft? Gimme a break. What I’m getting at is too many portfolios are over diversified and going nowhere exciting. 

At the least, Trian Fund is refreshing, but pretty inscrutable. Janus Henderson and General Electric comprises over 60% of assets. I don’t get the theme here, but at least they’re operating with knowable properties. 

Third Point, an $8 billion operation, is up 9% or so,  with a low static ratio of 19%. Big scope in PG&E, Microsoft, Amazon, Nvidia and particularly the Norfolk Southern. Lots of activity. Something to admire.

T Rowe Price sits as their unsharpened gigantic $934 billion operator. Positions in Nvidia, Microsoft, Apple and Amazon rest sizable with 20% of assets in 4 growthies. Makes the fund positive by $59 billion. By the 10th largest position we’re down to  1.4 of assets each holding. This huge operation carries a very low static ration of 6.6%. 

Here is a growth oriented portfolio with 35% of assets in prime paper like Nvidia, Microsoft and Apple. Two-thirds of portfolio assets are spread out in 1% or so positions. They’ll be around for another 100 years. 

Stocks like Amazon carried the Soros Fund of $6 billion. I don’t see any Goldman Sachs but plenty of Amazon at 7.7%. There are several $2 billion positions where I recognized none of the portfolio positions. What is Mercury Systems, Lamb Weston and Markel Group Inc? Gimme more Amazon, guys. 

I’ll end with what I consider a typically well managed operation namely, Coatue Management.  This $40 billion asset base is up 10% in equities for the quarter, Meta and Microsoft, 13% of assets and positive. Lots of activity here-in. How many funds do you follow rose 12% quarterly in recognizable names and still carry a high static ratio of 35%? 

I’ve saved Berkshire for last. We are talking market value of $269 billion led by Apple, American Express and Bank of America which comprise half of assets. Little that’s new here or sold out. I  banged out my AXP over 20 years ago and took my profits elsewhere. Buffett still holds more capital last time I checked.  

Bottom line? Hang onto your winners. Don’t get shaken out of a good thing just because you're a touch antsy on valuation. I bought back plenty of Berkshire. So far I’m doing OK.