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Berkshire Hathaway will hold its annual meeting Saturday. It’s always a colorful event, with CEO Warren Buffett putting on a show that is doubtless the most fun among major U.S. companies’ investor events.
This is a good time to see how well, or how poorly, the company’s stock holdings have performed so far this year.
If you haven’t already done so, read Buffett’s annual letter to shareholders that was published in February. The annual letter is always candid, informative and entertaining. It is of interest to any long-term investor, and it also features a helping of common sense to see through the financial-services industry’s sleight of hand.
Berkshire Hathaway’s website is refreshingly free of the typical breathless, feel-good nonsense that dominates many corporate websites, and it includes a list of all of Buffett’s annual letters to shareholders dating to 1977.
Berkshire’s stock investments
In addition to buying entire companies, Berkshire Hathaway buys and (sometimes) sells shares of stock. It’s required by the SEC to file a 13F report within 45 days of the end of each quarter, mainly listing the shares of companies that trade on U.S. exchanges.
Here’s a link to Berkshire’s Feb. 14 13F listing of stock holdings as of Dec. 31. You can find the entire list on the third link, which is the first one market “information table.”
It’s important to point out that the 13F doesn’t include all of Berkshire’s stock investments. For example, Berkshire is a major investor in Byd Co. The Chinese vehicle maker’s shares are down 21% this year, but Berkshire has made a bundle on this 10-year investment.
Here’s how Berkshire’s 45 stocks listed on the Dec. 31 13F form have performed in 2018.
First, the 18 winners:
| Company | Ticker | Industry | Total return - 2018 through May 2 | Total return - 2017 | Total return - 3 years | Total return - 5 years | Total return - 10 years |
| Mastercard Inc. Class A | Finance/ Rental/ Leasing | 23% | 48% | 108% | 252% | 583% | |
| Sirius XM Holdings Inc. | Broadcasting | 18% | 21% | 63% | 94% | 141% | |
| Phillips 66 | Oil Refining/ Marketing | 14% | 21% | 54% | 118% | N/A | |
| Visa Inc. Class A | Finance/ Rental/ Leasing | 11% | 47% | 96% | 199% | 556% | |
| Moody's Corp. | Financial Publishing/ Services | 11% | 59% | 58% | 187% | 378% | |
| Graham Holdings Co. | Other Consumer Services | 9% | 10% | 1% | 132% | 82% | |
| Monsanto Co. | Chemicals: Agricultural | 8% | 13% | 12% | 29% | 29% | |
| USG Corp. | Construction Materials | 8% | 34% | 53% | 62% | 14% | |
| M&T Bank Corp. | Regional Banks | 5% | 11% | 60% | 100% | 155% | |
| Apple Inc. | Telecommunications Equipment | 5% | 48% | 45% | 206% | 665% | |
| Costco Wholesale Corp. | Specialty Stores | 5% | 22% | 43% | 103% | 248% | |
| Verisk Analytics Inc | Insurance Brokers/ Services | 4% | 18% | 32% | 65% | N/A | |
| Liberty Media Corp. Series A Liberty SiriusXM | Movies/ Entertainment | 4% | 15% | N/A | N/A | N/A | |
| Liberty Media Corp. Series C Liberty SiriusXM | Movies/ Entertainment | 3% | 17% | N/A | N/A | N/A | |
| VeriSign Inc. | Internet Software/ Services | 3% | 50% | 84% | 152% | 276% | |
| Bank of New York Mellon Corp. | Major Banks | 1% | 16% | 33% | 111% | 44% | |
| United Continental Holdings Inc. | Airlines | 1% | -8% | 11% | 108% | 327% | |
| Bank of America Corp. | Major Banks | 1% | 36% | 92% | 157% | -15% | |
| Source: FactSet | |||||||
You can click on the tickers for more about each company, including news, price ratios, charts and financials.
And now, the 27 losers:
| Company | Ticker | Industry | Total return - 2018 through May 2 | Total return - 2017 | Total return - 3 years | Total return - 5 years | Total return - 10 years |
| Kraft Heinz Co. | Food: Major Diversified | -30% | -8% | -14% | 54% | N/A | |
| Procter & Gamble Co. | Household/ Personal Care | -21% | 13% | -3% | 7% | 45% | |
| Southwest Airlines Co. | Airlines | -20% | 32% | 26% | 296% | 309% | |
| American Airlines Group Inc. | Airlines | -19% | 12% | -12% | N/A | N/A | |
| Charter Communications Inc. Class A | Cable/ Satellite TV | -18% | 17% | 33% | 141% | N/A | |
| Synchrony Financial | consumer Lending | -14% | 8% | 8% | N/A | N/A | |
| Wells Fargo & Co. | Major Banks | -13% | 13% | 3% | 61% | 117% | |
| DaVita Inc. | Medical/ Nursing Services | -12% | 13% | -23% | 8% | 143% | |
| Restaurant Brands International Inc | Restaurants | -12% | 31% | 36% | N/A | N/A | |
| Johnson & Johnson | Pharmaceuticals: Major | -11% | 24% | 34% | 67% | 146% | |
| Mondelez International Inc. Class A | Food: Major Diversified | -11% | -2% | 3% | 31% | 135% | |
| General Motors Co. | Motor Vehicles | -11% | 23% | 16% | 38% | N/A | |
| Sanofi ADR | Pharmaceuticals: Major | -9% | 9% | -18% | -20% | 34% | |
| Goldman Sachs Group Inc. | Investment Banks/ Brokers | -8% | 8% | 23% | 74% | 32% | |
| Verizon Communications Inc. | Telecommunications | -8% | 4% | 9% | 14% | 114% | |
| Coca-Cola Co. | Beverages: Non-Alcoholic | -8% | 14% | 13% | 17% | 95% | |
| U.S. Bancorp | Major Banks | -6% | 7% | 25% | 72% | 81% | |
| International Business Machines Corp. | Information Technology Services | -6% | -4% | -8% | -18% | 48% | |
| Torchmark Corp. | Life/ Health Insurance | -6% | 24% | 54% | 114% | 225% | |
| Delta Air Lines Inc. | Airlines | -6% | 16% | 21% | 220% | 558% | |
| United Parcel Service Inc. Class B | Air Freight/ Couriers | -6% | 7% | 20% | 50% | 104% | |
| Axalta Coating Systems Ltd. | Industrial Specialties | -4% | 19% | -1% | N/A | N/A | |
| Store Capital Corp. | Real Estate Investment Trusts | -3% | 11% | 36% | N/A | N/A | |
| Liberty Latin America Ltd. Class C | Cable/ Satellite TV | -2% | N/A | N/A | N/A | N/A | |
| Liberty Latin America Ltd. Class A | Cable/ Satellite TV | -2% | N/A | N/A | N/A | N/A | |
| Teva Pharmaceutical Industries Ltd. ADR | Pharmaceuticals | -2% | -46% | -68% | -45% | -52% | |
| American Express Co. | Financial Conglomerates | -1% | 36% | 32% | 51% | 130% | |
| Source: FactSet | |||||||
So Berkshire’s portfolio hasn’t performed particularly well so far this year, while the S&P 500 is down 1% with dividends reinvested. Then again, four months into one year is a very short period for Buffett — as it is for any serious long-term investor.
Here’s how Berkshire’s stock has performed for longer periods against the S&P 500:
| Total return - 3 years | Total return - 5 years | Total return - 10 years | |
| Berkshire Hathaway Inc. Class B | 35% | 80% | 117% |
| S&P 500 | 33% | 83% | 131% |
| Source: FactSet | |||