Opinions
Chris Blumas
Berkshire Hathaway Inc. (B)
BRK.B-N
DON'T BUY
Oct 15, 2025
Stock price when the opinion was issued
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Investment portfolio consisting of public stocks and private companies. His firm really likes private equity. Stock dipped when handover to new CEO was announced, but nothing else has changed. That's why he likes the stock now. Greg Abel's been there since 2011 under Buffett's tutelage, so it should be smooth sailing. He sees a parallel with AAPL, when Tim Cook took over from Steve Jobs.
Doesn't pay a dividend, but will generate a quarter billion dollars in dividends alone this year, which get reinvested back into the business. That's pretty decent growth right there.
Doesn't know why people are buying and selling daily. Gives you exposure to broad, global markets with significant overweight to the US. You're trusting them to invest your $$ better than you can. Over long periods of time, proven to be no different than buying a large-scale, low-cost index fund.
20, 30, 40 years ago, they were much smaller and made a difference. So big now that they can't make enough of a difference in buying good companies and have them be accretive. Well run, and the pedigree's there. Great holding if you're looking for something with a value tilt. No dividend.
It's made a large bet on a correction in the market, with a cash hoard of $300-350B. So far they've been wrong. This afternoon's announcement won't help that if interest rates go lower. It's the biggest buyer of treasury bills in the world.
He's not in favour of trying to time the market. Hard to speak poorly of this name, as it's done so well over many decades. He remains pretty well fully invested in the market and rides the ups and downs.
Performed extremely well. Key is that Warren Buffett's stepping down will change its nature. Stock price started falling on that announcement. Big percentage of portfolio in AAPL. Contains a lot of value names, while it's growth that performs well in a falling interest rate environment. Not much in the way of the new frontier of AI.
Could have a place in your portfolio if you want names that have lower valuations.
A lot to learn from a business like this. He doesn't own it for client portfolios because of efficiency -- Berkshire's always been reluctant to return cash to shareholders via dividends. Business is designed to just aggregate cash. But as it's grown, harder to find meaningful acquisitions. Best thing would be to buy back shares, but they don't like doing that.
With recent volatility, $$ has flocked to defensive names like this. So valuation's been pushed up. If market sells off, this name will likely operate counter-cyclically and go up.
For him, names like KKR and BN are the modern-day Berkshires, as their strategies are similar to the smaller and younger BRK.B. So that's where he's been focused instead.