Bill Gates, founder of Microsoft, you don’t just make profits from your company. It also does so through a trust portfolio which it owns jointly with Melinda Gates. His first largest position, of course, is his company with an approximate value of 14 billion dollars. But the 2nd largest is nothing and nothing less than Berkshire Hathawaythe fund founded by Warren Buffett. An investment valued at around 7.1 billion dollars, according to Ryan Vanzo on Yahoo Finance.
This should come as no surprise to anyone who has followed their friendship for a long time. Both have been friends for more than three decades. During that time, they have shared a lot of wisdom with each other.
In 2023For example, ChatGPT asked Bill Gates for the best advice he’s ever received. Gates immediately invoked Buffett. “Warren Buffett talked about [cómo]in the end, what matters is how friends really think of you and those friendships are so strong“said Gates. In another interview a few years earlier, Gates described how Buffett would reach out to him regularly to catch up and discuss what he had found captivating recently.. “Although he maintains a hectic schedule, Warren still finds time to cultivate friendships like few people I know,” Gates described. “Pick up the phone and call to say hello. “He regularly submits articles that he has read and that he thinks… I will find interesting.”
Buffett often urges investors to invest in things they know and people they trust. We shouldn’t be surprised to see one of his closest friends follow this advice and invest in Berkshire Hathaway.
There’s another thing to know about Gates’ position at Berkshire Hathaway: It is not his only coincidence with Buffett. In 2010, Berkshire bought the famous Burlington Northern Santa Fe railroad company in a deal worth $26.4 billion. Was a rare case where Buffett opted to issue additional Berkshire shares to finance an acquisition. In retrospect, the purchase was a great investment. The railroads operate pseudomonopolies, providing lasting competitive advantages that have lasted for decades and should last into future decades. It is not surprising, then, that the Gates’ third largest holding after Microsoft and Berkshire Canadian Natl Rla stake valued at approximately $6.9 billion.
On the whole, Berkshire and Canadian National Railway holdings comprise one-third of Gates’ entire trust portfolio. So whether investing directly in Berkshire stock or replicating his investment strategy through stocks like Canadian National Railway, Gates is clearly keen to follow Buffett’s lead.
Should You Buy Berkshire Stock Right Now?
There’s a secret you should know when it comes to Berkshire stock: It has never been a bad time to buy. From nineteen ninety fivethe shares have increased its value by more than 1,600%. But what would happen if you bought at the peak of the dotcom bubble? The actions have up almost 1,000% since 2000. What if you bought right before the financial crisis? From 2007the shares have up almost 500%.
Of course, past results do not guarantee future returns. But as the Berkshire shares trade at 1.5 times book value (close to its long-term average), the stock does not appear overvalued. Buffett remains at the helm, accompanied by a group of trusted investors who share his vision and investment philosophy. The company is also more diversified than ever, with investments in technology, insurance, energy, transportation and much more.
Berkshire is truly a one stop shop to diversify your portfolio. With a decades-long track record of outperforming the market, plus one of his closest friends at the helm, Gates is expected to retain his stake in Berkshire for years to come. Smart investors could do a lot worse than follow his lead and make Berkshire one of their top long-term holdings.
Berkshire Hathaway It is around 604,144 dollars. The 70-period moving average is below Thursday’s candle, RSI is up at 39 points and the MACD fast line (blue) is crossing below the zero level.
Medium and long-term resistance is at $646,000. Meanwhile, Ei indicators are mixed.
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