Recently, Berkshire Hathaway (NYSE:BRK.B) released its most recent holdings. While Buffett hasn’t been making any particularly large transactions, he has made several smaller transactions that are worth keeping an eye on.
Buffett is among the wealthiest people in the world and is known as one of the best money managers in the world, and as a result, his actions are closely watched by investors. Furthermore, a lot of investors believe that following Buffett’s moves can make you a lot of money.
Before I look at what he has been doing with his money, let’s keep a couple of things in mind. First, Warren Buffett is no longer making all of the decisions at Berkshire Hathaway. Todd Combs and Ted Weschler are both managing small (relatively speaking) portions of Buffett’s portfolio. One way to tell who’s doing what is to look at the size of the transactions. If a portfolio holding is in the billions of dollars, then it is probably Buffett. Smaller holdings are usually picked by Buffett’s protégés.
Second, Buffett is not infallible. The best way to look at Buffett’s holdings is to use the list as a starting point for your own research. If you want to simply follow Buffett, then your best bet is to simply buy Berkshire Hathaway. But keep in mind that these shares have an imbedded “Buffett premium,” meaning that shareholders are willing to pay a premium for Buffett’s expertise and his ability to take profits and dividends from one of his companies and employ it elsewhere without paying taxes. When Buffett dies or retires (he’s 83 now), the stock will fall.
With this in mind, let’s take a look at a couple of Berkshire’s Q2 transactions.