How to Buy Warren Buffet’s Berkshire Hathaway in Australia
Are you looking to invest in a company with solid financials? Something that has been gaining momentum since it started and has still room for growth in years to come. It’s possible that one of your candidates is Berkshire Hathaway – Warren Buffet’s famous baby.
Read on to know more about this company and how you can participate and ride its growing stock price.
Why Berkshire Hathaway?
Berkshire Hathaway is a gigantic holding company that has shares in diverse industries. Just last 2017, the company’s market capitalization grew to $448 billion, making it one of the biggest publicly listed companies in the world, along with the likes of Microsoft, Apple, and Alphabet.
Its founder, Warren Buffet, is famous for his ability to multiply his company’s revenues through value investing. His skill in stock picking and choosing a candidate that will become incredibly profitable in the long run is legendary enough to make him one of the richest persons in the world.
Some of the subsidiaries of his company include Dairy Queen, Kraft Foods Inc., and Geico. They also have stakes in Apple, Wells Fargo & Co., Verizon Communications Inc., Procter & Gamble Co., and General Motors Company.
Investing in Berkshire Hathaway
Unfortunately, Australians can’t participate directly in trading Berkshire Hathaway shares. The company isn’t listed on the Australian Stock Exchange (ASX).
There are many local companies that have businesses similar to Berkshire Hathaway. Although their performance may not be anywhere near Berkshire’s, the strategy involved in growing the business is somewhat the same.
Washington H. Soul Pattinson and Co. Ltd practice a strategy similar to Berkshire in looking for businesses to invest in. The company currently has a market capitalization amounting to AU$ 3.5 billion, thanks to its diversified portfolio delving into various industries. You can participate in trading their stock in the ASX by looking for their ticker named SOL.
But if you really want to get involved with Berkshire Hathaway, there are other ways to do this. You can open an account with trading platforms that allow you to participate in the international bourse.
The ASX also has a listed investment company (LIC) which has the majority of its assets placed on Berkshire Hathaway. The LIC we’re talking about is Global Masters Fund Limited.
Global Masters Fund Limited
Global Masters Fund Limited (GFL) was founded in 2004 in New South Wales. The company became publicly listed a year after.
Although GFL is a separate entity from EC. Pohl & Co., the former is a vital part of the strategy of the latter to give them better exposure to international markets, especially to publicly listed companies in the US and UK.
The company has two major investments in their portfolio. One is Berkshire Hathaway which composes the bulk of their selection. Their other offshore investment is on Athelney Trust PLC which is a company listed on the UK stock market.
GFL’s goal is to achieve long-term growth and create shareholder wealth by investing in companies listed internationally. For now, they’re focused on Berkshire and Athelney. But as their portfolio expands, it’s possible they’ll tap into other markets too in the near future.
The company does not pay dividends, though, since the majority of their shares is with Berkshire Hathaway which is known for not giving out dividends.
As of this writing, GFL is trading at AU$ 2.30 per share. It’s a lot cheaper compared to the actual price of Berkshire Hathaway shares. Maybe you can invest in this LIC and see if it will soar along Berkshire as the company reaches new highs.