AboutWarren Boroson Expertise Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.
Experience Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.
Question Hi Warren,
How are you?Could you please tell me if there are any funds that invest exclusively in Berkshire Hathaway A shares or say 80% invested in the same.If there are not any could you please tell me the fund with the largest percentage of its holding in A shares.Thanks.
Regards
Bruce Deck
Answer Dear Bruce Deck--
I don't know of any funds that invest exclusively in Berkshire Hathaway A shares. You can buy the B shares for $3,000 or so, and they aren't much different from the A shares (apart from the A shares costing 30 times as much).
One fund with an enormous exposure to BrkA is Sequoia, which--according to Morningstar--had almost 35 percent of its assets in the company as of last year. But
o Sequoia has been closed to new investors since the 1980s, I believe.
o Its recent performance has been poor. Over the past 3 years, its performance has earned a single star from Morningstar. It has underperformed the S&P 500 by 4.65 percentage points over 3 years.
Do you know why? Because I was able to buy shares three years ago.
I myself own a very modest number of the Brk B shares, and perhaps this is the route you yourself might take.
