Warren Buffett purchased textiles company Berkshire Hathaway (BRK.A 1.08%)(BRK.B 1.09%) in 1965, and he converted it into a holding vehicle for various investments. Today, it owns several private companies and 47 publicly traded securities.
Berkshire stock has delivered a compound annual return of 19.8% since Buffett took the helm in 1965, which is twice the return of the S&P 500 index. He follows a simple investing strategy which involves buying profitable businesses with steady growth and strong management teams. He especially likes companies returning money to shareholders through dividends and stock buybacks, which helps Berkshire compound its money more quickly.
Berkshire has built a fortress balance sheet over the past 58 years with a record $167.6 billion in cash, equivalents, and short-term investments on hand at the end of 2023:
A list of companies Berkshire could (theoretically) buy outright
To put Berkshire's cash pile into perspective, here are 10 globally recognized companies currently worth less than $167.9 billion:
- General Electric: $166.8 billion
- Uber: $162.4 billion
- Nike: $160.1 billion
- Morgan Stanley: $142.1 billion
- United Parcel Service: $126.7 billion
- Boeing: $122.5 billion
- Blackrock: $120.8 billion
- AT&T: $120.1 billion
- Sony: $108.9 billion
- Airbnb: $97.3 billion
To be clear, neither Buffett nor Berkshire have expressed interest in buying any of those companies. However, the fact the conglomerate can afford to do so is a testament to its incredible success.
Berkshire's current top-three holdings include Apple, Bank of America, and American Express. Together, they account for 62.7% of the total value of Berkshire's portfolio of publicly traded stocks. They are a good place to start for investors seeking to mimic Buffett's returns.
