Freeberg

I was about to give him an award for saying not to get political and moving on.

I was about to give him an award for saying not to get political and moving on.

It's a great, great read. There it is.

It's a great, great read. There it is.

So Freebark, take us through this. Well, so it looks like since the start of the year, they've sold 55% of their holdings in Apple. And if you look at the end of the year, Nick, if you could pull up this image with the pie chart, this is what Berkshire's stock holdings were in their non-majority owned businesses. So businesses that they don't own the business outright. Right.

So Freebark, take us through this. Well, so it looks like since the start of the year, they've sold 55% of their holdings in Apple. And if you look at the end of the year, Nick, if you could pull up this image with the pie chart, this is what Berkshire's stock holdings were in their non-majority owned businesses. So businesses that they don't own the business outright. Right.

and 50% of their portfolio was in Apple at $174 billion. We obviously saw Apple's stock price peak, highest level ever just a few days ago. But it has since come down as it was reported that since the start of the year now, Berkshire sold 55% of this position. So some people are arguing that they've got a point of view on the company strategy and competitive kind of landscape.

and 50% of their portfolio was in Apple at $174 billion. We obviously saw Apple's stock price peak, highest level ever just a few days ago. But it has since come down as it was reported that since the start of the year now, Berkshire sold 55% of this position. So some people are arguing that they've got a point of view on the company strategy and competitive kind of landscape.

Some folks have argued that the valuation multiple has gotten too high, trading at nearly 30 times earnings. The stock has risen 900% since Berkshire bought the stock in 2016. Nine bagger. Nicely done. And some people would argue that the percent of the portfolio is too high at over 50%, as you can see here, at the start of the year. But I'll kind of provide some of the counter arguments.

Some folks have argued that the valuation multiple has gotten too high, trading at nearly 30 times earnings. The stock has risen 900% since Berkshire bought the stock in 2016. Nine bagger. Nicely done. And some people would argue that the percent of the portfolio is too high at over 50%, as you can see here, at the start of the year. But I'll kind of provide some of the counter arguments.

Warren Buffett does not do much analysis on corporate strategy when he provides reviews of the stocks that he's picked. He often finds and talks a lot about great managers that generate great returns and he sticks with them. And he sticks with them sometimes for many, many decades. The management in this company has not changed.

Warren Buffett does not do much analysis on corporate strategy when he provides reviews of the stocks that he's picked. He often finds and talks a lot about great managers that generate great returns and he sticks with them. And he sticks with them sometimes for many, many decades. The management in this company has not changed.

The return profile on cash invested and cash returned has only improved since he put money in. They're generating more cash flow. They're offering more dividends. They're doing more stock buybacks. And he's happy to be concentrated. Over the years, he's made large bets on single companies to the point that sometimes he just outright buys the entire company like he did with Geico. in 1996.

The return profile on cash invested and cash returned has only improved since he put money in. They're generating more cash flow. They're offering more dividends. They're doing more stock buybacks. And he's happy to be concentrated. Over the years, he's made large bets on single companies to the point that sometimes he just outright buys the entire company like he did with Geico. in 1996.

He always talks a lot about finding a company that is run by great managers, that has a premium product with a nice high margin and a durable moat, strong brand value. As I look at kind of what's really gone on here, it feels to me like the difference between Apple and some of the other big holdings in its portfolio is that many of those other businesses are regulated monopolies.

He always talks a lot about finding a company that is run by great managers, that has a premium product with a nice high margin and a durable moat, strong brand value. As I look at kind of what's really gone on here, it feels to me like the difference between Apple and some of the other big holdings in its portfolio is that many of those other businesses are regulated monopolies.

So BNSF Railway is regulated by the Federal Railroad Administration. Berkshire Energy, which owns MidAmerican, is a regulated utility. The prices that they charge consumers are set by the government. So they have a market that's locked in. The prices are set, they have locked in distribution, they have locked in utility value. And the same is true in the insurance business.

So BNSF Railway is regulated by the Federal Railroad Administration. Berkshire Energy, which owns MidAmerican, is a regulated utility. The prices that they charge consumers are set by the government. So they have a market that's locked in. The prices are set, they have locked in distribution, they have locked in utility value. And the same is true in the insurance business.

Geico's rates are approved and set effectively by state regulators. Berkshire has a moat because they've got the largest capital base and they've got this machine that just keeps generating cash. And the rates are publicly set by government. Apple, however, is not regulated.

Geico's rates are approved and set effectively by state regulators. Berkshire has a moat because they've got the largest capital base and they've got this machine that just keeps generating cash. And the rates are publicly set by government. Apple, however, is not regulated.