Buffett is not finding buying opportunities hence large cash pile, says Glenview Trust's Bill Stone
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Warren Buffett's secret stock could be revealed imminently. What it could be
Warren Buffett's Berkshire Hathaway has been building a secret stock position with special confidential treatment for two quarters in a row. The mystery name could be revealed Thursday when the conglomerate releases its 13F filing. Berkshire's second-quarter earnings report showed a $2.8 billion increase in cost basis to "commercial, industrial and other" equities, after a rise in the same category in the first quarter. It's most likely that Berkshire has been accumulating the same stock, now worth about $4.7 billion. The Omaha-based conglomerate could keep the pick under wraps for another quarter. The confidential treatment allows Berkshire to quietly build up a position and limit price movement without stoking volatility. Still, chances are it will be revealed imminently, and here's what it could be. To come up with the best guesses, we take into consideration the "most important" factor Buffett himself has said when it comes to picking a successful investment, which is judging the durability of a company's competitive advantage, or "moat." CNBC Pro used Morningstar to identify wide moat stocks in the industrial sector. Morningstar defines these stocks as companies whose competitive advantages are strong enough to fend off competition and earn high returns on capital for 20 years or more. We also looked at some other criteria based on Buffett's preference for quality and value stocks: Market cap of at least $1 billion Industrial sector Forward price/earnings ratio of less than/equal to 20 (less than S & P 500) Traded in the U.S. Defense name Lockheed Martin , which is on the list, is also the guess from Bill Stone, Glenview Trust Company CIO and a longtime Berkshire shareholder. The stock is down about 10%, significantly underperforming the broader market. Another defense and industrial aerospace stock Huntington Ingalls Industries came up on the list. Railroad stocks Canadian National Railway , Canadian Pacific Kansas City and Union Pacific Corp also made the list. To be sure, it's unlikely Buffett would buy into rival railroad names while owning BNSF. — CNBC's Fred Imbert contributed reporting.
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Should You Buy Berkshire Hathaway While It's Below $470?
Key Points Berkshire Hathaway's stock price has been crumbling of late, even as the S&P 500 index has been soaring to new highs. Longtime CEO Warren Buffett is stepping down in a matter of months. Investors buying Berkshire Hathaway stock today are stepping in ahead of what is likely to be the most watched CEO transition in modern history. 10 stocks we like better than Berkshire Hathaway › Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is an iconic company that is, for now, run by one of the most famous investors in Wall Street history: Warren Buffett. But shortly after Buffett announced he would retire from his CEO role at the end of 2025, Berkshire Hathaway shares started to deflate. They are now down around 15%, and its class B shares are trading below $470. Is this a good opportunity to buy the stock? What is Berkshire Hathaway, anyway? Berkshire Hathaway is classified as a finance sector company largely because it has significant insurance operations. And that isn't a bad label to put on it -- every company has to be categorized somewhere -- but it doesn't do justice to the actual businesses owned by the diversified conglomerate. Berkshire Hathaway's corporate umbrella covers more than 180 wholly owned companies. It also holds a massive portfolio of publicly traded stocks. The variety of businesses in the Berkshire Hathaway empire includes everything from insurance companies to manufacturers, from utilities to retailers, and from railroads to candy makers. And that's far from a complete list -- I could keep going, but you probably get the idea. What investors in Berkshire Hathaway are really buying is more akin to a mutual fund than a traditional company. And that means that when you buy Berkshire Hathaway, what you are really doing is investing alongside Buffett. This is why the leadership transition from Buffett to his hand-picked successor, Greg Abel, is such a big deal. And it is why investors are selling the stock even as the market rises. The conglomerate's incredible long-term performance, which was based on Buffett's unique investment approach, likely contributed to the stock's premium valuation. Is it time to jump ship or jump aboard? For investors who only own shares of Berkshire Hathaway because of Buffett, it makes some sense to sell in the wake of his retirement announcement. There is no way to know what Abel will do at the helm of Berkshire Hathaway, and he has big shoes to fill. However, there are some things you ought to consider before making a buy or sell decision about the stock. For starters, Buffett is retiring as CEO, but he is not completely leaving the company just yet. He will stay on as the chairman of the board of directors. That means that he will remain Greg Abel's boss. Although Buffett famously has a hands-off management style, when a Berkshire subsidiary needs an assist, he steps in. So we can expect that Abel won't be left adrift. He will still have access to the sage wisdom of the Oracle of Omaha to help him out as needed. Then there's the important fact that Abel has worked for Buffett for decades. He is steeped in his mentor's investment approach and has played an important role in the conglomerate's investment process for several years, too. So when he's in the CEO seat, his investment approach will be based on Buffett's approach. Sure, Abel is a different person, so his style won't be identical to Buffett's. But they are highly likely to rhyme. All in all, the CEO transition will be a huge deal for Berkshire Hathaway. But it may not be as dramatic a change as some fear when it comes to how the giant conglomerate operates. That said, Buffett is leaving Abel with a huge cash stockpile -- Berkshire had over $340 billion of cash on its balance sheet at the end of the second quarter. That will be a drag on near-term performance, but could also allow Abel the chance to hit the ground running since it could fund some sizable acquisitions. The future is unknowable, but Berkshire isn't likely to change much The recent slide in Berkshire Hathaway's share price is likely related to Buffett's impending retirement. That event is a big deal, but given Abel's long history with Buffett, it may not be as big a deal as some investors fear. If you only have Berkshire in your portfolio because of Buffett, selling could make sense. But if you simply want to be a long-term investor in a Buffett-like investment approach, then there's literally no better option than Berkshire Hathaway. And the stock's decline below $470 could make this a smart moment for you to get on board. Should you buy stock in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy. Should You Buy Berkshire Hathaway While It's Below $470? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
