The Investment Mastermind: Warren Buffett’s Next Move
Warren Buffett, the legendary CEO of Berkshire Hathaway, has been outperforming the S&P 500 for decades, growing his company’s Class A shares by over 5,700,000% since taking the reins in the mid-1960s. As one of only 10 publicly traded companies to reach a $1 trillion market cap, Berkshire Hathaway’s investment portfolio is closely watched by professional and retail investors alike.
Unlocking the Secrets of Berkshire’s Portfolio
Quarterly Form 13F filings with the Securities and Exchange Commission (SEC) provide valuable insights into Berkshire’s buying and selling activity. However, these filings don’t tell the whole story. Berkshire’s investment portfolio, valued at nearly $303 billion, holds secrets that aren’t revealed in its 13Fs.
The Oracle’s Favorite Holding
Warren Buffett has invested almost $78 billion into a particular stock since 2018, but it’s not listed in Berkshire’s 13Fs. This stock is none other than shares of his own company, Berkshire Hathaway. Prior to July 2018, Buffett was restricted from repurchasing shares due to rules governing buybacks. However, after the board amended the criteria, Buffett was given the freedom to repurchase shares at will.
A Value Investor’s Dilemma
As a value investor, Buffett has been repurchasing shares of Berkshire Hathaway for 24 consecutive quarters, totaling close to $78 billion. However, in the recent quarter, Buffett didn’t authorize any share repurchases, likely due to Berkshire’s stock trading at a 60% to 70% premium to its book value. With $325.2 billion in cash reserves, Buffett has the flexibility to be more lenient with his perception of value when it comes to shares of his own company.
The Stock Buffett Will Likely Buy in 2025
Given Berkshire’s cash reserves and Buffett’s history of repurchasing shares, it’s highly likely that Berkshire Hathaway is the stock he’ll buy in 2025. As the Oracle of Omaha, Buffett has consistently demonstrated his ability to find value in his own company, making Berkshire Hathaway a top contender for his next investment move.
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