David Fingold Berkshire Hathaway Inc. (A) BRK.A-N PAST TOP PICK Jan 06, 2023

Kingpin of quality and investing. Interestingly, he also owns its top 3 holdings: AAPL, BAC, and CVX. Good quality companies with ability to sustain earnings over the long term. 30x earnings, not a great buy. Cherry-pick companies instead.

Warren Buffett just released his annual shareholder letter--essential reading on Wall Street. The S&P was down 18% last year, but Berkshire was up 4%. Annual compound gains since 1965: 9.9% S&P vs. 19.8% Berkshire. He has always recommend Berkshire stock, because they make long-term bets on the underlying business. The business, not the stock is what Buffett invests in. Berkshire is the top shareholder of 8 S&P stocks, like Chevron, Amex and Coke. Lessons: diversification, long-term thinking and compounding.

Main difference is the price. The As are a really high price, and the Bs are in the $300s. They're largely economically equivalent. The B shares were created in 1996 so that small investors could buy the stock without being taken advantage of by firms charging management fees for ETFs holding BRK.A. If you had a massive amount of money, like institutional investors, you'd be indifferent. Most people prefer the B shares. 

A great defensive holding. Very durable over the long term. Has had a pretty strong runup, so the valuation is more robust that it's been. People have fled to safety because of the banking crisis in the US. Insurance, especially, is counter-cyclical. You want to wait.

No. If you purchase on a Canadian exchange, you're really just neutralizing the currency fluctuation of holding a US security.

His position is that holding US securities in USD is a benefit, as he wants exposure to the US dollar. He doesn't want to limit himself to an economy that represents 3% of the world's wealth. He encourages diversification at every level, including currency.

He easily expects its market cap to top $1 trillion in a few months, despite worries of Buffett's age.. It has lots of moving parts in its favour, like Geico, Mosaic and Apple, plus lots of industrials. It needs interest rates to go lower; Wall Street feels that will benefit BRK more than the tech stocks. 

They keep investing n companies with consistent revenue growth and strong balance sheets. This is Buffett's strategy. He invests in the right sectors like staples, financials and insurance. He's confident that the company will continue to succeed after Buffett.

We're seeing less of Buffett as he gets older. The focus is now on succession planning--where will the next generation allocate capital?

Berkshire trimmed some BOA shares. We're late cycle: credit card delinquencies have jumped from 5% to 11% in a year. Nothing is wrong with BOA. It's fine to trim shares in companies and build Berkshire's war chest.

It is true that BRK.A/BRK.B is a very competitive alternative relative to other options like owning the SPY ETF. It is especially attractive for investors who seek a value-oriented portfolio. BRK.A is managed conservatively with a portfolio of businesses (wholly owned or through publicly traded securities) with tremendous pricing and staying power. As a group, these businesses generate healthy cash flow, allowing BRK.A to allocate capital to acquire more businesses, creating a compounding engine over time. That being said, BRK.A is quite large, investors need realistic expectations for returns going forward, we think it can do around 10%-12% in a low-risk manner. It could underperform during a strong bull market but it tends to outperform during a flat or declining market. 
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Would recommend a partial position in a well diversified portfolio. Excellent management team with Warren Buffett at the lead.