Funds That (Still) Buy Like Buffett, 2013
Funds with similar stock holdings to Warren Buffett have excelled over time.
The upcoming Berkshire Hathaway (BRK.B) shareholder meeting in Omaha means that Warren Buffett will be in the spotlight again. The past 12 months have not been as eventful for Buffett as some previous years, but he did make headlines in February of this year by announcing that Berkshire will spend $12 billion to buy 50% of HJ Heinz (HNZ), with a group of Brazilian investors buying the other half.
Buffett discussed the Heinz deal and many other matters in this year's Berkshire shareholder letter, which you can read here. He sang the praises of Todd Combs and Ted Wechsler, whom he hired in recent years to run portions of Berkshire's investment portfolio, and revealed that each of them is now managing around $5 billion. Buffett reserved the most space in this year's letter for discussing capital allocation decisions, including an explanation of why Berkshire has resisted paying a dividend. In his typical clear fashion, the Oracle of Omaha explained why he prefers to spend available funds on capital expenditures, acquisitions, and share repurchases before he would consider paying a dividend.
David Kathman does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.