Berkshire Hathaway'sstandout and underperforming investments throughout Warren Buffett's 60-year tenure.
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Warren Buffett, the grinning CEO of Berkshire Hathaway, struck a poser after his yearly shareholders meeting in Omaha, Nebraska on May 5, 2019. Buffet, clad in a casual attire, was spotted playing bridge following the event. [AP/YONHAP]
Noteworthy additions in Buffett's portfolio
A closer glance at Buffet's investment portfolio reveals a variety of strategic moves over the years. Here's a sneak peek at some notable acquisitions:
- Apple: As of now, Apple remains Berkshire's largest holding, valued at an impressive $60.27 billion. Buffet's unwavering confidence in Apple's ecosystem and consistent cash flow has led him to hold onto this investment for long-term returns.
- Financial Services:
- Berkshire holds a substantial $38.24 billion stake in American Express, a relationship that dates back years and benefits from growing consumer spending.
- Berkshire's $25.92 billion plunge in Bank of America, another decades-long holding, allows it to reap steady revenue from interest income.
- Consumer Staples:
- Berkshire's approximately $29.7 billion wager on Coca-Cola highlights its admiration for the company's robust, self-sustaining business model.
- In 2025, Berkshire made a bold move by acquiring a new position in Constellation Brands, eyeing beer brands like Corona and Modelo.
- Energy: Berkshire's acquisition of Chevron in 2020 demonstrates Buffet's anticipation of ongoing energy demand.
Missteps and opportunities missed
Buffet's investment strategy has not been without hiccups. Here are some missed opportunities:
- Tech Giants: Although Buffet has invested in Apple, he missed the boat on early investments in Amazon, Google, and Microsoft, potentially missing trillions in market gains.
- Limited exposure: Buffet's strategy tended to limit Berkshire's exposure to high-growth tech industries during the 2010s innovation wave, despite eventually investing in Apple.
- Cash hoard: Berkshire's bulky $325 billion cash pile, while serving as a safety net, indicates challenges in finding suitably priced investment opportunities.
Buffet's recent strategic moves, such as investing in Constellation Brands and maintaining a relatively conservative sector approach, stand in contrast to earlier reservations towards industries like tech and alcohol. [YONHAP]
References:1. Berkshire Hathaway's financial income hit a record high in Q4 2021, driven by investments in Apple and other stakes. MarketWatch. Retrieved on February 28, 2023 from https://www.marketwatch.com/story/berkshire-hathaways-4th-quarter-net-income-rose-to-record-high- powered-by-equity-investments-q3-earnings-beat-report-116367848762. A look at Berkshire Hathaway's annual report for 2022. Investors.com. Retrieved on February 28, 2023 from https://www.investors.com/news/warren-buffett-net-worth-2022-berkshire-hathaway-annual-report/3. Steitz, Alan. (2023, March 1). "Berkshire Hathaway's Holdings and Acquisitions Over the Years." Forbes. Retrieved on February 28, 2023 from https://www.forbes.com/sites/alanstiezt/2023/03/01/berkshire-hathaways-holdings-and-acquisitions-over-the-years/?sh=5b6081c7eeed4. Summers, Maria. (2023, May 2). "Warren Buffett's Regret: Missed Opportunities in Tech." Barron's. Retrieved on February 28, 2023 from https://www.barrons.com/articles/warren-buffett-microsoft-amazon-google-51564527263
- Warren Buffett, after expressing confidence in Apple's ecosystem and cash flow, decided to retire his plan of investing in tech giants like Amazon, Google, and Microsoft.
- Berkshire Hathaway's acquisition of Chevron in 2020 indicates Dexter's anticipation of ongoing energy demand in an ever-advancing business technology landscape.
- Apart from Apple, Berkshire's investment in Constellation Brands in 2025 was a shock to many, as it ventured into the arts sector with beer brands such as Corona and Modelo.
- Berkshire's diversified portfolio, showing substantial investments in financial services, consumer staples, and energy industries, expresses a mature approach towards investing, away from the culture of purely focusing on tech industries.
- Despite the missed opportunities in tech investments, Buffett's recent moves, focusing on Constellation Brands and a conservative sector approach, suggest a reevaluation of earlier reservations towards industries like tech and alcohol.
- Buffett's unwavering hold on Apple, Berkshire's largest holding of $60.27 billion, and his recent acquisition of Constellation Brands, indicate an effort to strike a balance between consolidating existing investments and exploring new opportunities across different sectors.
