Berkshire Hathaway’s Hidden Gems: Unknown Stocks Worth Your Investment
When it comes to Berkshire Hathaway’s (BRK.A) public equities portfolio, most of us are familiar with the big names like Apple, American Express, and Coca-Cola. But did you know that there are lesser-known businesses in Berkshire’s portfolio that deserve your attention?
The Power of Diversification
Warren Buffett, Berkshire Hathaway’s chairman and CEO, is a firm believer in diversification. He once said, “Diversification is protection against ignorance. It makes very little sense for those who know what they’re doing.”
Buffett’s portfolio is a testament to this philosophy. It includes a wide range of industries, from finance and manufacturing to retail and energy. By investing in a variety of stocks, Berkshire Hathaway spreads its risk and increases its chances of earning solid returns.
The Unsung Heroes
One such unsung hero in Berkshire Hathaway’s portfolio is BNSF Railway. This Fortune 500 company is one of the leading freight railroad networks in North America. It operates over 32,500 route miles of track in 28 states and two Canadian provinces.
Another lesser-known stock in Berkshire’s portfolio is Precision Castparts. This Portland, Oregon-based company is a leading manufacturer of complex metal components and systems for the aerospace, power generation, and industrial markets. Precision Castparts’ products are used in a wide range of applications, from commercial and military aircraft to industrial machinery.
The Impact on Individuals
As individual investors, these lesser-known stocks in Berkshire Hathaway’s portfolio offer us the opportunity to diversify our own portfolios and potentially earn solid returns. By investing in a variety of stocks, we can spread our risk and increase our chances of earning consistent returns, even if some stocks underperform.
Moreover, investing in these stocks allows us to follow in the footsteps of a legendary investor like Warren Buffett. Buffett’s track record speaks for itself, and by investing in the same stocks as him, we can learn from his investment decisions and potentially benefit from his expertise.
The Impact on the World
On a larger scale, Berkshire Hathaway’s investments in these lesser-known stocks can have a significant impact on the world. For instance, BNSF Railway’s extensive network plays a crucial role in the transportation of goods across North America. Its efficient logistics solutions help businesses move their products to market, contributing to economic growth and job creation.
Similarly, Precision Castparts’ high-tech components and systems are used in various industries, from aerospace to power generation. These advanced technologies help improve the efficiency and performance of machines and infrastructure, leading to innovation and progress.
Conclusion
In conclusion, while Apple, American Express, and Coca-Cola are undoubtedly impressive additions to Berkshire Hathaway’s public equities portfolio, there are lesser-known stocks that deserve our attention. By investing in these hidden gems, we can diversify our own portfolios, learn from Warren Buffett’s investment decisions, and contribute to economic growth and innovation.
- Berkshire Hathaway’s public equities portfolio includes a wide range of industries and stocks.
- Two lesser-known stocks in Berkshire’s portfolio are BNSF Railway and Precision Castparts.
- These stocks offer individual investors the opportunity to diversify their portfolios and potentially earn solid returns.
- BNSF Railway plays a crucial role in the transportation of goods across North America, contributing to economic growth and job creation.
- Precision Castparts’ high-tech components and systems help improve the efficiency and performance of machines and infrastructure, leading to innovation and progress.
