Few stocks command as much attention as Berkshire Hathaway (BRK.B:NYSE), but then few investors are as well known as Warren Buffett and his late business partner Charlie Munger.

The pair built a business with a market cap today of $880 billion and an investment portfolio which is as good a representation of the US economy as you are likely to find, from railroads to restaurants and banking to consumer goods.

In the third quarter of 2023, Berkshire reported sales of $19 billion against $6 billion a year earlier and a loss of $12.8 billion due to unrealized investment losses.

However, as Buffett frequently explains, given the stocks in Berkshire’s portfolio are meant to be held ‘forever’, what matters most are operating earnings rather than investment gains or losses, and on that score the firm well and truly delivered with a 41% increase on the previous year.

That being said, when the firm reports its fourth-quarter earnings on 26 February there will inevitably be a focus on its largest quoted holding, consumer electronics giant Apple (AAPL), which makes up 50% of the equity portfolio and was valued at almost $175 billion at the end of        last year.

There will also be keen interest in the latest ‘secret’ addition to the portfolio, with some suggesting Morgan Stanley (MS:NYSE) is the name in question given the investment bank pays a healthy dividend and has just installed a new straight-talking chief executive, Ted Pick. 

‹ Previous2024-02-22Next ›