For investors seeking significant exposure to Berkshire Hathaway, Inc. (NYSE: BRK.A or BRK.B) as part of their overall stock portfolio, there are a number of top mutual funds whose holdings include a high percentage of Berkshire Hathaway stock. They include the Sequoia Fund, the Weitz Partners III Opportunity Fund, the Clipper Fund, and the Fidelity Contrafund.
- Conglomerate Berkshire Hathaway is one of the most appreciated and widely-watched companies.
- Many investors would like to invest in the company's shares but would prefer to do it within the scope of a mutual fund.
- Funds that are heavily invested in Berkshire Hathaway include the Sequoia Fund, Weitz Partners III Opportunity Fund, the Clipper Fund, and the Fidelity Contrafund.
The Sequoia Fund
The Sequoia Fund, established in 1970, seeks long-term growth of capital. This fund is focused on common stocks that the fund manager believes are undervalued at the time of purchase and that have substantial growth potential. Generally, the Sequoia fund invests in the stocks of U.S. companies, though it may also invest up to a total of 15% of its assets in foreign securities.
This fund has an expense ratio of 1.1%. It has a ten-year annualized return of over 11%. Together, class A and class B shares of Berkshire Hathaway make up over 8% of the portfolio's assets. Other top holdings of the fund are Google parent Alphabet and CarMax.
Berkshire Hathaway offers two classes of shares for potential investors: Class A shares, which retail at around $340,000, as of January 2020, and Class B shares, which retail at around $226—a far more manageable price for average retail investors.
Weitz Partners III Opportunity Fund
The primary goal of the Weitz Partners III Opportunity Fund is capital appreciation. Partners III is a multi-cap fund that invests in a wide range of stocks that the fund manager believes offers the best prospects for profit. The fund takes both long and short positions in stocks, as well as short positions in exchange-traded funds (ETFs), in accordance with its investment goals and the market evaluation by the fund's manager, Wallace Weitz.
This fund has an expense ratio of 1.2%. Its ten-year annualized return is approximately 11%. Class B shares of Berkshire Hathaway hold the third most weight in this fund, at 10.4% of assets. Other top holdings for the fund include SPDR S&P 500 ETF and Intelligent Systems Corp.
Berkshire Hathaway is led by legendary investor Warren Buffett, who is the company's Chairman, President, and CEO.
The Clipper Fund
This fund aims to provide investors with long-term capital preservation and growth. These objectives are achieved by investing in stocks that the fund manager, Christopher Davis, perceives as substantially undervalued. The fund manager looks to identify companies with current share prices that are not reflective of their long-term intrinsic value. The fund invests in common stock, preferred stock and stock options.
The Clipper Fund has an expense ratio of 0.71%. The ten-year annualized return for the fund is 12%. Class A shares of Berkshire Hathaway are the top holding for this fund, accounting for 9.3% of the fund's assets. Other major holdings are United Technologies and Amazon.com.
The Fidelity Contrafund seeks capital appreciation by investing in common stocks of companies that the fund manager believes are not accurately valued, and that hold outstanding growth potential – especially firms that predominate their industries in terms of revenues and growth potential. The fund manager, William Danoff, seeks to identify good potential growth stocks and value stocks.
The expense ratio for the fund is 0.82%. The ten-year annualized return for the fund is 14%.
Class A shares of Berkshire Hathaway hold the third-most weight in this fund, at 5.5%. The two most heavily weighted companies are Facebook and Amazon.com.