Berkshire Hathaway Inc.: Is It Time to Buy BRK.B Again?

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When all is said and done, Berkshire Hathaway Inc. (BRK.ABRK.B) is an insurance company.

Berkshire Hathaway Inc.: Is It Time to Buy BRK.B Again?What makes it unique is two things: The man who runs it and the way it manages its portfolio of investments.

The man is the famous Warren Buffett. This 85 year old is known as the Oracle of Omaha, hearkening back to his Midwest beginnings. He has built one of the most durable and successful stocks in the market and has become the most iconic long-term value investor on the planet.

Originally, only BRK.A was listed on NYSE. The problem is, the share price is a bit higher than most individual investors are willing (or able) to spend. Today the price stands at $213,519 a share.

Buffett then realized as the price continued to rise that it was becoming improbable that individual investors could come along for the ride without skewing their entire portfolio toward the fund.

Are Berkshire Hathaway’s BRK.B Shares Still Worthy?

That’s when he built BRK.B shares. This tracked the same Buffett portfolio as the A shares with proportionally less voting rights, etc. These are a mere $142 a share. And they are very interesting right now.

As for Berkshire Hathaway’s holdings, Buffett tends to take ownership positions in select companies rather than spread his money around. Remember, insurance companies generally sit on huge piles of cash from their premiums and put it to work while they’re holding it.

Buffett holds a big amount of a relatively small portfolio of companies. His moves are watched by the entire financial world as they try to figure out what he sees in certain companies at certain times.

For example, right now he holds 26% of newly merged Kraft Heinz Co (KHC); 26% of USG Corporation (USG); and nearly 16% of American Express Company (AXP). Just those stakes alone are worth about $36 billion.

What this means is, Buffett gets a seat at the table when these companies make decisions. He’s just not along for the ride in most cases.

BRK.B had a tough latter part of 2015, and as usual, the detractors began asking if Buffett was losing his touch. As sure as they were feeling justified, Buffett proved them wrong … again. His selection process is as enduring and successful as he is.

In the last 3 months, BRK.B is up almost 8%. That is certainly better than the broad market is trading.

What’s more, BRK.B is back in my buy range. This is a great time to pick up one of the best long-term investments in the business and a very good price.

Richard Band’s Profitable Investing advisory service helps retirement savers outperform the market without losing a minute of sleep along the way. His straightforward style and low-risk value approach has won seven Best Financial Advisory awards from the Newsletter and Electronic Publishers Foundation.

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