Want to Buy Shares of Warren Buffett’s Investment Empire Before 2024 Is Over? Consider These 5 Magnificent Vanguard ETFs That Own Berkshire Hathaway Stock.
Led by Warren Buffett Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRC.B) It is known to contain large quantities Shares in common stocks like apple, American Express, Bank of America, coca colaand Chevron. But the bulk of Berkshire’s value comes from its other assets, which include insurance companies, railroad company BNSF, energy company Berkshire Hathaway, and a large number of retail, service and manufacturing companies.
Exchange-traded funds Berkshire Hathaway’s ETFs provide a way to capitalize on Buffett’s investment empire while maintaining diversification. Berkshire Hathaway shares are holdings in several funds, including low-cost ETFs offered by investment management firm Vanguard.
Here are five Vanguard ETFs with exposure to Berkshire that might be worth buying now. But first, here’s a look at why Berkshire is in a unique position heading into the new year.
In August, Berkshire became the first non-technology company to reach $1 trillion in market capitalization. But Berkshire has had a volatile few months since then, with a market capitalization of $977 billion at the time of this writing.
It’s been a uniquely contradictory year for Berkshire. Buffett has sent several warning signals to investors by trimming positions or selling and raising money — suggesting that Buffett and his team may view the broader market as generally overvalued.
The warning signs have become louder in recent months, as Berkshire did not buy back its own stock during the quarter for the first time since the third quarter of 2018. Berkshire’s net cash position is at a record high, and its net stock sales for the year so far during the September quarter are All-time highs.
On paper, Berkshire is arguably the most pessimistic of all. But that doesn’t mean buying the company is a bad idea. To begin with, $325 billion in cash and Treasury bills essentially means that roughly a third of Berkshire’s value is in cash. The total value of Berkshire’s public stock holdings does not exceed $300 billion, so the rest of the company’s value is in other assets, such as insurance companies, railroads, and other companies mentioned previously.
Berkshire is a stable company with many advantages in today’s relatively expensive market. They contain the dry powder needed to load up on stocks or make acquisitions when they feel the valuations make sense. Their businesses are stable cash cows that tend to grow gradually over time. It’s not the type of company that can achieve explosive growth, but it also has what it takes to withstand an economic slowdown.
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