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A Review of Berkshire Hathaway Holdings

I L-U-V Warren Buffett. I have long tried to emulate his strategies, and his company, Berkshire Hathaway, makes up ten percent of my portfolio. From time to time, I like to look at what Berkshire, and by proxy Buffett, is investing in. Here are some of Berkshire’s holdings that I like the most:

  1. Attempting not to be too basic with my picks, Liberty Media is a pick I like. If you watch Formula 1, you know about Liberty Media. Liberty Media owns the rights to Formula 1 and has experienced massive growth along with the sport. Liberty also owns Sirius XM, which I do not love as much, seeing as nobody listens to the radio anymore, but of those who still do listen, it is a cash cow. Radio is cable TV, not very expensive to run, and fairly profitable despite falling audience numbers. Liberty also owns Live Nation Entertainment, which is a concert and live viewing conglomerate that owns Ticketmaster. I am not in Liberty and likely never will be. Liberty violates where I am right now. I am all about aggressiveness and growth, and Liberty Media is a bit too meat and potatoes for me. Still, if you are looking for boring, compounding, and reasonably predictable companies, Liberty is for you.

  2. Now, I get to be basic because I used Liberty as my first pick. Apple is the best stock Warren Buffett owns. Apple is a cash compounder, with 87% of GenZ using only their products. Their cash stockpile would make Apple the world’s 58th biggest economy in the world, (IMF) and with market cap, the sixth biggest economy in the world. Apple is too big to fail right now, but that does not matter. Apple has crazy retention rates they have created by making their brand into something semi-luxury. Apple is barely starting the real cash cow of subscription-based services. The Apple Vision Pro headset will be big eventually. This is merely the first edition, Mark I, and Apple does not give up on products; they just make them better. Apple is a winner, which is why the greatest investor of all time has made their company 50% of his portfolio.

  3. American Express is a great company. What American Express has going for it most is the moat it has built for itself. American Express is seen as a luxury product, and that effect has been built up well in the next generation of AMEX holders. Already, 32% of American Express’s payment volume is from Gen Z and Millenials, which bodes well for the future. These higher-end customers are more likely to make all of their payments, reducing costs to AMEX. Their moat is also practical for the consumers who get benefits from their extensive network. AMEX’s most important moat, however, is its closed-loop system. AMEX issues cards, and it runs the system that channel merchants use to accept payments. AMEX is insulated from recessions to a large degree compared to its competitors because of its affluent customers who have more resources to spend. AMEX does compete against some heavy hitters, JPMorgan Chase, Capital One, Mastercard, etc., but AMEX is the pinnacle, and Warren Buffett believes it will continue to be.

Okay, those are the big ones, but other holdings like Amazon and Visa are absolutely worth paying attention to, and Warren Buffett is always worth listening to. Also, sorry if this article has been mid. I am super sick right now, but that never would stop me from getting dollas.