Berkshire Hathaway: Invest like Warren Buffett!

Last Updated: 14. November 2023By

It is likely that many of you already agree with me when I say that the investment holding company Berkshire Hathaway is truly an impressive holding!

A brief look back Let’s take a brief look into the past. The immense success story began in the 1960s with the entry of the world-famous investor legend Warren Buffett.

Together with Buffett’s long-time friend and business partner Charlie Munger, the now 93-year-old invests in moat companies that both fully believe in. These include world-famous brands such as Coca-Cola, one of Buffett’s favorite dividend stocks, and Apple, the favorite stock, which comprises a whopping 51% of the portfolio. The investment horizon is always long-term.

Berkshire Hathaway with fresh numbers The success is once again confirmed by the reported figures. Within the first nine months of the current fiscal year, the US-based holding company reported sales of $271.1 billion, an increase of 21% compared to the previous year.

Berkshire Hathaway posted a profit of $58.6 billion, after a loss of $40.8 billion in the previous year.

In the third quarter, operating profit was $10.8 billion (+40%). Sales rose 21% to $93.2 billion. The cash balance rose to a record $157 billion.

The chart speaks volumes The long-term development of the stock speaks volumes. Looking at the chart (B-share of the holding company), the success of the past few years is clearly visible. After all, Buffett knows what he is doing and is not one of the most successful investors of all time for nothing.

Investors who hold the stock are currently enjoying annual price gains of an average of 13% per year. My conclusion for you You should not or must not replicate Buffett’s portfolio one-to-one. But it can’t hurt to follow his strategy and invest in well-known, promising quality companies that everyone is familiar with and whose business models are understandable and successful. And preferably in the long term.

With an investment in Berkshire Hathaway, investors participate in the success of the stock market legend from Omaha. The holding company’s portfolio includes, among others, investments in American Express, Coca-Cola, Kraft Heinz, Apple, Visa, HP, Amazon, and Bank of America.

And Berkshire is more than „just“ an investment holding company. Above all, the core business is booming, which consists of insurance services. The company trades in vehicle insurance, as well as damage and accident insurance or private life and health insurance.

In the near future, it will certainly be exciting to see what Berkshire Hathaway will do next with its mountain of cash.

A stock that you can buy and hold on to, as Buffett always says.