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Investing Specialists

Berkshire Puts Money Back to Work in Equities

With Buffett's lieutenants hitting the ground running, will a more collaborative process among Berkshire's newest investment managers prompt a rethinking of long-standing holdings?

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By Greggory Warren, CFA | Senior Stock Analyst

When we relaunched the Ultimate Stock-Pickers concept a little more than three years ago, we made a point of including a few insurance companies in our list of top managers because, unlike their peers in the mutual fund business, the portfolio managers at insurance companies tend not to be impacted by investor redemptions during weak market environments. They're also a bit more long-term oriented than most mutual fund managers, investing their portfolios according to the time horizon and payout profiles associated with the products underwritten by their firms rather than the vagaries of the equity markets. While fixed income tends to dominate the average insurance company's investment portfolio, with the asset class providing a steady stream of cash flows necessary for duration matching, some insurers choose to hold a larger position in stocks, which have historically generated superior long-term returns compared with some of the other investment options available to them.

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The Morningstar Ultimate Stock-Pickers Team does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.