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Stock Strategist

A Bounty of Ideas from Berkshire's Portfolio

A look at Berkshire's 5-star holdings.

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Investment conglomerate  Berkshire Hathaway (BRK.B) recently released its second-quarter Form-13F, which discloses the company's equity holdings as of June 30, 2007. Berkshire is one of the companies I closely follow in managing The Morningstar Ultimate Stock-Picker's Portfolio. Not only do I routinely scan the conglomerate's holdings for new ideas, but my model portfolio also has a position in Berkshire's stock. (If you haven't already done so, please be sure to sign up for my free e-mail alerts to get more information about Berkshire and The Ultimate Stock-Picker's Portfolio's performance.)

I think most investors, including me, can learn a lot from the stock picks of Berkshire CEO Warren Buffett and his colleague Lou Simpson, given their focus on buying great businesses at good prices. While the logic behind this philosophy seems straightforward, there are really two things that set Berkshire apart from the rest of the crowd. The first is rather obvious, as the accumulated knowledge of Buffett and Simpson gives them an edge in identifying good businesses, or in the case of Berkshire's railroad purchases, businesses whose economics are slowly improving over time.

Justin Fuller has a position in the following securities mentioned above: AXP, PG, HD, WU. Find out about Morningstar’s editorial policies.