"Investors look at Berkshire Hathaway as something of a safe haven stock. It has a portfolio of stocks and private companies as large as any other conglomerate in the country. While much of this ownership is in financial services, Buffett has a foot in the oil industry and railroads. The company also owns the stock of nearly 50 companies, ranging from American Express and Occidental Petroleum to Coca-Cola, Bank of America, and Kroger. A theory is that this gives Berkshire a broad foundation across virtually the entire economy. Being sturdy is good."
"The most convincing argument about Berkshire's lag is its low exposure to the super-hot tech sector. Buffett says he does not invest in companies he does not understand. The runup in these stocks is largely due to artificial intelligence (AI), and some investors believe that the concentration of new technology is a risk. AI may be the most important technology in history, but it has produced little revenue. Some suspect that it will always be free to users."
Berkshire Hathaway's stock rose less than 9% year-to-date while the S&P 500 gained nearly 15%, producing underperformance in 2025. The company maintains a diversified portfolio of public stocks and private companies across industries including financial services, oil, and railroads, with major holdings like American Express, Occidental Petroleum, Coca-Cola, Bank of America, and Kroger. Low exposure to rapidly appreciating AI-driven tech limited upside as investors favored those names despite limited AI revenue. Significant portfolio sales include exiting BYD after a 20x gain and reducing Apple holdings, raising strategic questions about future positioning.
Read at 24/7 Wall St.
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