Something peculiar caught my eye in the Berkshire 13F filing this quarter. It is a very small holding and completely irrelevant given the size of the equity portfolio for Berkshire. The position is sized at a little over $25M and is too small even for Berkshire’s two investment managers, Todd and Ted. However, this is the first time to the best of my knowledge that Berkshire has purchased the S&P index (SPDR and the Vanguard S&P 500 ETF) as part of its main portfolio.
Q4 2019 hedge fund letters, conferences and more
Time will tell whether this is the beginning of Berkshire deploying excess cash through an index fund or just a small position with no relevance in the bigger picture. While Warren Buffet has long been a proponent of S&P index for general investors, this is the first time he has used it as part of Berkshire’s portfolio.
13-f Link here
Consolidated portfolio changes from Dataroma (here)
Article by Beowulf Capital
