Funds That Are Berkshire Hathaway Fans
These funds have the biggest stakes in Warren Buffett's company.
We at Morningstar have long been fans of Warren Buffett and his investment vehicle, Berkshire Hathaway (BRK.B). Buffett has become an investing legend (and one of the world's richest men) by finding understandable businesses with strong management and wide economic moats, buying them at a discount to their intrinsic value and holding on to them for the long term. From 1965 through 2008, Berkshire's book value increased at an annualized rate of 20.3%, more than twice the total return of the S&P 500 benchmark during that period. Last year was one of the toughest in Berkshire's history, but the firm's second-quarter 2009 results, reported on August 7, showed that it's already rebounding strongly.
Given how respected Buffett is in the investment world, it's no surprise that some mutual funds have tried to emulate his style, with varying degrees of success. (See, for example, "Seven Buffett-Inspired Funds We Believe In" and "Can Funds Go Wrong with Buffett as Their Guide?".) But imitating Buffett is no easy task, so other funds invest directly in Berkshire stock. Most of these are inspired by Buffett to some degree, some more closely than others.
We thought it would be interesting to take a look at the mutual funds with the biggest Berkshire stakes and see what they might have in common. The following table shows the 10 funds with the largest percentage of their portfolio in Berkshire Hathaway stock, with each fund's ticker and Morningstar category. We also show the size of each fund's asset base, its percentile ranking in its category for the year to date as of August 11, and its percentile ranking in its category over the past 10 years.
David Kathman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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