Last week, I posted an article about the books on trading and investing like Warren Buffett, the founder of Berkshire Hathaway (NYSE:BRK.A), the highest priced stock and one of the most successful companies during the last half century.
But with the stock selling at over $108,000 per share, it is hard for the average investor to invest in the company. Fortunately, there are several alternative ways to invest in the stock:
The easiest way is by investing in the Class B shares of Berkshire Hathaway (NYSE:BRK.B), which represent 1/30th of the value of the Class A shares and have 1/200th of the per-share voting rights. But even those shares are extremely high priced at over $3500 per share.
A second way to invest in the stock is by owning shares in the Sequoia Fund [SEQUX], a mutual fund with a large position in Berkshire Hathaway. Almost 30% of their portfolio is invested in the stock. Some of the other stocks in their portfolio include:
The minimum investment in Sequoia is $1,000.
A third way to invest is by investing in the Fairholme Fund [FAIRX] which has a little over 14% of their portfolio invested in Berkshire. Although the concentration is not as significant as Sequoia, it is the number one holding in the portfolio. Fairholme's other major holdings include:
Canadian Natural Resources (NYSE:CNQ) 12.19% of the portfolio
Echostar Communications (NASDAQ:DISH) 9.6%
Penn West Energy Trust (NYSE:PWE) 6.7%
Mohawk Industries (MHK) 4.7% [surprisingly, this is also one of Sequoia's top five]
Minimum investment is $2500.
There are other funds which have around five percent of their portfolio in Berkshire, such as Legg Mason Partners Appreciation Fund [SHAPX], but the percentage isn't enough to be a close play on Berkshire.
The last way is to create a portfolio that emulates Berkshire's holdings of publicly traded stocks, however, this wouldn't cover Berkshire's holdings of non-public stocks. In addition, it would involve purchasing many different stocks, so you would be better off just buying the Class B shares. But if you just want to pick and choose the "best" of Berkshire's holdings, here is the list of stocks it owns:
American Express Co. (NYSE:AXP)
American Standard Companies (ASD)
Ameriprise Financial, Inc. (NYSE:AMP)
Anheuser-Busch Cos. (NYSE:BUD)
Canadian National Railway Co. (CN-OLD)
The Coca-Cola Company (NYSE:KO)
Costco Wholesale (NASDAQ:COST)
Diageo PLC (NYSE:DEO)
First Data Corporation (FDC-OLD)
General Electric (NYSE:GE)
The Home Depot (NYSE:HD)
H&R Block Inc. (NYSE:HRB)
Iron Mountain (NYSE:IRM)
Johnson & Johnson (NYSE:JNJ)
Lexmark International (NYSE:LXK)
Lowes Companies (NYSE:LOW)
M&T Bank (NYSE:MTB)
Moody’s Corporation (NYSE:MCO)
Mueller Industries (NYSE:MLI)
OSI Restaurant Partners (OSI)
Pier 1 Imports (NYSE:PIR)
Procter & Gamble Co. (NYSE:PG)
Sealed Air (NYSE:SEE)
Shaw Communications (NYSE:SJR)
SunTrust Banks (NYSE:STI)
Target Corp. (NYSE:TGT)
Tyco International (NYSE:TYC)
United Parcel Service (NYSE:UPS)
Wal-Mart Stores Inc. (NYSE:WMT)
The Washington Post Company (WPO)
Wells Fargo (NYSE:WFC)
Wesco Financial Corporation (NYSEMKT:WSC)
Disclosure: Author owns PWE, KO, COP, UPS, TYCO and calls on JNJ.