Berkshire: Perfectly Adequate, Really

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One is, naturally, expected to have a portfolio. Dozens, in my case. A frightful bother, keeping track of it all, but one must appear busy. The notion of being limited to a single holding, however… that’s a rather grim prospect, isn’t it? Still, if forced to choose, one supposes there are worse fates than a stake in Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Perfectly adequate, really.

Diversification, or the Illusion Thereof

The principal advantage, if one is being charitable, is diversification. Not that I particularly need it. One has one’s sources. But Berkshire does offer a rather broad spread, a sort of financial potpourri. Sixty subsidiaries, they claim. One imagines most are dreadfully dull. Insurance, energy… the usual. But there are also homebuilders, manufacturers, even railroads. One shudders to think.

And then, of course, there’s the portfolio within the portfolio. Over forty stocks, apparently. Which means, rather conveniently, that one is indirectly invested in several holdings one already possesses: Apple (AAPL 2.20%), that tiresome tech giant, the Google entity Alphabet (GOOG 1.10%) (GOOGL 1.08%), Amazon (AMZN 0.39%), Chevron (CVX +0.66%), and Mastercard (MA 1.73%). A sort of financial nesting doll, if you will. Rather clever, in a pedestrian sort of way.

One also finds a smattering of stocks one doesn’t currently deign to hold, but which are, apparently, ‘solid long-term prospects.’ American Express (AXP 1.55%), Coca-Cola (KO 0.43%), and Visa (V 3.08%). One suspects they’re all perfectly frightful, but one hasn’t had the time to investigate.

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Buffett’s Departure: A Minor Inconvenience

The absence of Mr. Buffett at the helm? Honestly, one barely notices. A perfectly competent fellow, I’m sure, but all this fuss and bother over an aging financier… really. His ‘philosophy,’ as they call it, will no doubt continue to exert its influence, though one suspects it’s largely been overhyped.

Greg Abel, the new CEO, seems perfectly capable. And Mr. Buffett himself assures us he intends to hold onto his shares, believing the company will perform better under Abel’s management. A rather damning admission, if one thinks about it. Though, of course, he remains Chairman. One presumes he’ll continue to offer his ‘wisdom’ whenever he feels inclined.

Still, even if he were to vanish completely, one would likely choose Berkshire. It’s not a particularly exciting investment, mind you. But in this increasingly volatile world, one sometimes prefers the merely adequate to the spectacularly disastrous.

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2026-02-16 13:42