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By Anthony Di Pizio–Mar 2, 2024 at 1:29PM
Key Points
Warren Buffett has steered the Berkshire Hathaway investment company to market-beating returns since 1965.
Berkshire had a whopping $167.6 billion in cash on hand at the end of 2023, which was a record high.
That cash pile is so large that Berkshire could, theoretically, acquire some of the most recognized companies.
NYSE: BRK.A
Berkshire Hathaway
Market Cap
$965B
Today's Change
(-0.54%)-$3,630.02
CurrentPrice
$671,749.99
Price as of September 13, 2024, 4:00 p.m. ET
Not all of these companies fit Buffett's investing style, but the fact that Berkshire can afford to buy them puts its success in perspective.
Warren Buffett purchased textiles company Berkshire Hathaway (BRK.A -0.54%) (BRK.B -0.72%) 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.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Apple, Bank of America, Berkshire Hathaway, Nike, and Uber Technologies. The Motley Fool recommends United Parcel Service and recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy.
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