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Warren Buffet Silent on Berkshire Hathaway Stock Portfolio - Here’s Why

At most cases, Berkshire Hathaway and its CEO Warren Buffet don't expose any data regarding its stock portfolio than the legally required. That includes its quarterly 13-F filings.

Meanwhile, during Berkshire Hathaway's 2019 annual meeting, the Oracle of Omaha, Warren Buffet openly address the question. According to Buffet, Berkshire Hathaway is "not in a business of explaining why" it owns stocks.

However, there are instances of exceptions. For instance, whenever Buffet believes that a specific transaction is significant for the investors. There is also a time when Buffet wants to make things clear on a new position which investors also need to know, Buffet would discuss more than the usual if he thinks it needs to.

For example, Amazon.com's recent inclusion in Berkshire's stock portfolio in which Buffet openly discuss even before the annual meeting this year. Its investors might not know about it until the first-quarter 13-f due in mid-May if Buffet hasn't disclosed the matter. Buffet wanted to provide investors with a heads-up that he wasn't the one who made the decision to invest in the tech giant. That either made by Ted Weschler or Todd Combs who put the effort having the tech giant.

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Competitive Advantage

Buffet already said before, Berkshire eagerness to invest substantial sums of money in companies mostly led by common stocks. That was one of its key competitive advantages. While other insurance operations and conglomerates mostly hold the small cost of equity securities within their balance sheets. That makes Berkshire Hathaway's stock allocation unique among others.

Berkshire Hathaway's market capitalization estimation is at about $523 billion. Berkshire has $114 billion in cash and equivalents. About $210 billion or exceeding half of the company's asset is consist of common stocks. That is to say, Berkshire's major portion is on stocks.

Berkshire Hathaway's market capitalization estimation is at about $523 billion. Berkshire has $114 billion in cash and equivalents. About $210 billion or exceeding half of the company's asset is consist of common stocks. That is to say, Berkshire's major portion is on stocks. It would now make it clearer why Berkshire doesn't easily disclose its stocks portfolio. Buffet on queries regarding the foreign stocks was answered nicely. Buffet said Berkshire isn't about "giving business information," he noted, "that is proprietary."

Why Invest With Buffett?

As Berkshire's size and record of success, a number of investors closely watches the company's stock portfolio. Whenever there are new position announced, the shares mostly goes upward as investors go with Buffets side.

On the contrary, it might not be that great going along the Oracle of Omaha. As we've pointed out, the price paid for a new position isn't openly discussed as Berkshire took serious precautions when it comes to its stock portfolio.

Yet still, the decision will be on the investor's hands. Hope this post also help you strategically think about investing.

   

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