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How to Create Your Own Mini Berkshire Hathaway

  • (0:30) - What Can You Learn From The Latest Berkshire Hathaway Meeting?

  • (6:20) - Creating Your Own Berkshire Hathaway Portfolio

  • (27:10) - Episode Roundup: UNP, HVT, HSY, SIG, RDFN, COMP



Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

On May 6, 2023, Berkshire Hathaway held its annual meeting in Omaha, where Warren Buffett and Charlie Munger held court in a 5-hour question and answer session, halted only by a lunch break.

This annual meeting was rather subdued compared to those in the past. The biggest tidbit of gossip was that Buffett considers Apple to be the best business that they own. Additionally, he said Berkshire was not intending on buying out Occidental Petroleum.

But what if, as an investor, you wanted to own the various businesses that Buffett owns, but you didn’t want to do so by owning shares of Berkshire Hathaway? Berkshire Hathaway now has $130 billion in cash but doesn’t pay a dividend. That’s a lot of cash sitting on the sidelines.

It’s also not cheap, with a forward P/E of 17.

Creating Your Own Mini Berkshire Hathaway

Anyone can mimic Berkshire Hathaway’s equity portfolio. That’s easy. The company files Form 4s every quarter disclosing what stocks they are buying, and selling.

But what about its other businesses? It owns See’s Candy, Dairy Queen, BNSF Railroad, Nebraska Furniture Market and a bunch of other companies.

5 Berkshire-Like Companies You Could Buy Right Now

1.       Union Pacific Corp. (UNP)

Union Pacific Corp. is a big American railroad, similar to Berkshire’s BNSF.

Shares of Union Pacific are down 4.3% year-to-date but it’s not that cheap. It trades with a forward P/E of 17.8.

Earnings are expected to be up 0.09% this year and 7.1% in 2024. But is that enough to pay 17.8x?

Should you buy Union Pacific, and old economy stock, in 2023?

2.       Haverty Furniture (HVT)

Haverty Furniture operates 100 showrooms in 16 southern and Midwest states. Founded in 1885, Haverty is in the same mold as some of Buffett’s furniture investments like Nebraska Furniture Market.

Shares of Haverty have fallen 14.6% year-to-date. It’s dirt cheap, with a forward P/E of 6.7. Haverty also pays a dividend, currently yielding 4.3%.

However, with the US housing market slowing, so are Haverty’s sales. Sales fell 5.9% in the first quarter.

Is Haverty a deal?

3.       The Hershey Company (HSY)

Hershey is a confection and food company that makes famous candy brands such as Reese’s and Almond Joy. While it’s not identical to Berkshire’s See’s Candy, it’s the closest publicly traded candy company out there.

Hershey shares have been on a tear in 2023, gaining 18.7%. It’s also near a 5-year high. But Hershey doesn’t come cheap. It’s trading at 29x.

Is Hershey over bought?

4.       Signet Jewelers Limited (SIG)

Signet Jewelers is an option if you want to own a jewelry store like Warren Buffett. Berkshire Hathaway bought Helzberg Diamonds in 1996.

Shares of Signet Jewelers are up 5.5% year-to-date and 88% over the last 5 years. The 5-year performance easily beats the S&P 500, which is up 51.7% during that time.

Signet Jewelers is cheap, with a forward P/E of 6.2.

Should you consider Signet Jewelers even thought a recession may be coming?

5.       Redfin Corp. (RDFN)

Redfin is a real estate brokerage. Did you know that Berkshire Hathaway also owns one? It’s Berkshire Hathaway HomeServices.

It’s been a wild couple of years for Redfin’s shares. Over the last 2 years, it’s down 78% but in 2023, Redfin is hot, gaining 161%.

Redfin doesn’t have a P/E as earnings are expected to be negative in both 2023 and 2024.

Is a rebound in housing already priced into Redfin shares?

What Else do Value Investors Need to Know About Creating a Mini Berkshire Hathaway?

Listen to this week’s podcast to find out.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Union Pacific Corporation (UNP) : Free Stock Analysis Report

Hershey Company (The) (HSY) : Free Stock Analysis Report

Signet Jewelers Limited (SIG) : Free Stock Analysis Report

Haverty Furniture Companies, Inc. (HVT) : Free Stock Analysis Report

Redfin Corporation (RDFN) : Free Stock Analysis Report

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Zacks Investment Research