A preliminary analysis of the holding portfolio of Berkshire Hathaway Inc. from 2000 through 2009

• Main Authors: Cheng, Yao-Hui (Hubert), 鄭耀暉
• Other Authors: Chu, Po-Young
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/66512214685043730855

碩士 === 國立交通大學 === 高階主管管理碩士學程 === 99 === The legendary investor Warren Buffett has been delivering outstanding performances in managing Berkshire Hathaway Inc. as an investment holding company since 1965. By analyzing Berkshire Hathaway Inc.’s holding portfolio, this research intends to portrait Warren Buffett’s value investing practices and his strategic thinking in portfolio management. This research analyzed the holding portfolio of Berkshire Hathaway Inc. disclosed in SEC 13F-HR from 2000 to 2009. This research explored the correlation of the fluctuations between Berkshire holding position and S&P 500 index, and discussed the turn-over rate of this holding position by categorizing the portfolio by sectors and holding periods. This research also compared key company financial indices between Berkshire’s long-time holdings and short-time holdings. The result showed that capital return rates (R.O.I., R.O.E.) and profitability (GPM, NPM) were the most important criteria for Berkshire to invest in. This research found Berkshire did favor companies with highest profitability and low beta for holding long-term. The values of P/B ratio over historical P/B band best explained the timing of buy and sell. Berkshire Hathaway Inc. has adopted both core holding and diversified portfolio in managing the fund. This finding seems supporting what Warren Buffett said that he is 15 percent Fisher and 85 percent Benjamin Graham.