David Fried maintains a model portfolio that is updated monthly for his The Buyback Letter; the portfolio is up 393% since inception in 2000 vs. a gain of 192% for the S&P 500 over the same time. Here’s the latest addition.
Berkshire Hathaway-B Inc. (BRK.B) is the Omaha, Nebraska-based holding company for the various investments CEO Warren Buffett has made over the years.
Among its numerous holdings are insurance businesses such as GEICO, large energy and utilities businesses, a major railroad, consumer brands such as ice cream chain Dairy Queen, and manufacturers such as aerospace parts manufacturer Precision Castparts. It also owns a huge portfolio of equities.
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Since the 1960s, the company’s share price has risen by an annual average of 20%, making it one of the best stocks to buy according to elite investors.
Anytime Berkshire Hathaway adds or sheds a company in its massive stock portfolio, it makes news because of Buffett’s stunning record of gains over his 56 years of investing.
The latest investment was in financial technology (fintech). Berkshire invested $500 million in the Brazilian fintech start-up called Nubank, which is best known for issuing credit cards.
Nubank has 40 million customers and plans to expand its operations into Mexico and Columbia; there have been rumors the company is considering a U.S. IPO in the future.
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Warren Buffet and Berkshire have done very well since the onset of the pandemic. From March 18, 2020, BRK-B is up some 70%. In 2020, Berkshire’s market value increased by just 2.4%. However, year-to-date, it’s up 26%. If it can hang on to these gains, it will be the company’s best year since 2014.
Berkshire had Q1 2021 operating earnings of $3.05 per share. The bottom line improved 26.6% year over year. Revenues increased 5% year over year to $64.6 billion; operating earnings of $7 billion increased 19.5% year over year.
Share repurchases during Q1 totaled $6.6 billion. In the last 12 months, management has reduced shares outstanding by 6.028%.
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