Investment Picks: Top Berkshire Hathaway Shares Suggested for Immediate Acquisition
In a bold move that underscores confidence in their future growth potential, Berkshire Hathaway, led by Warren Buffett, has significantly invested in tech titans Amazon, Visa, Mastercard, Apple, and insurance powerhouse Chubb.
Amazon, with its dominance in artificial intelligence (AI) and cloud infrastructure through Amazon Web Services (AWS), holds about 30% of the global cloud market. This strong position, nearly equal to its next two competitors combined, positions AWS well to benefit substantially from growing AI-related computing demand. Berkshire owns roughly 10 million shares, making it its largest position among these stocks.
Visa and Mastercard, with their near-duopoly in the U.S. payment processing sector, boast impressive market shares of 57.5% and 37.5%, respectively. Their business thrives on strong network effects, where merchants and consumers prefer widely accepted payment networks, creating a natural competitive moat. Berkshire holds significant shares in both companies, reflecting its confidence in their continued market consolidation and profitability.
Apple, renowned for its robust software ecosystem and consistently growing operating income, has a large weighting in Berkshire's portfolio due to its integrated hardware-software model and strong brand loyalty. Despite recent selling by Berkshire, the tech giant remains a dominant holding, with a 300 million-share stake worth approximately $64 billion, representing over 16% of Berkshire's total publicly traded portfolio.
Chubb, one of the largest global insurance companies, is valued for its competitive business model and strong profitability. Despite being one of the least exciting stocks in Berkshire's portfolio, it is one of the favourites, trading at 13.4 times earnings, making it one of the cheapest stocks in Berkshire's portfolio. Berkshire owns nearly 7% of Chubb, equating to a 2.4% portfolio weighting, and it's a stock to buy now.
The investment strategy of Berkshire Hathaway, focusing on businesses with durable competitive advantages, strong returns on capital, and long-term growth potential, is evident in these choices. The combination of dominant market positions (Amazon’s cloud leadership, Visa and Mastercard’s network effects, Apple’s ecosystem, and Chubb’s insurance strength) underpins the bullish outlook on these stocks. Despite tepid revenue growth expected for 2025 and a price-to-earnings ratio of 33, Apple remains a dominant holding in Berkshire's portfolio and is worth buying. Chubb, with its industry-leading profit levels for years, presents an attractive investment opportunity for those seeking stability within the insurance market.
Berkshire Hathaway, led by Warren Buffett, has invested significantly in tech titans like Amazon, Visa, Mastercard, Apple, and insurance powerhouse Chubb. This strategic investment in these companies reflects Berkshire's focus on businesses with durable competitive advantages and long-term growth potential. Amazon, with its dominance in AI and cloud infrastructure, holds about 30% of the global cloud market, making it an attractive investment for Berkshire who own roughly 10 million shares. Visa and Mastercard, due to their near-duopoly in the U.S. payment processing sector, are also favored by Berkshire, with significant shares held in both companies. Apple, despite recent selling by Berkshire, remains a dominant holding, with a 300 million-share stake worth approximately $64 billion. Chubb, one of the largest global insurance companies, is valued for its competitive business model and strong profitability, and is considered an attractive investment opportunity for those seeking stability within the insurance market.
