Berkshire Hathaway

$American Express(AXP.US)

Context: One of the secrets of Berkshire Hathaway and its success in the stock market has been its focus on value. On top of that, Berkshire's management team has sought companies that have significant advantages over their competitors -- an economic moat -- operating in a mature industry with reliable cash flow. One of the stocks they hold is American Express. Its market position is geared toward more affluent customers with its gold and platinum card programs, both of which charge hefty annual fees. American Express increased its annual fee for its Platinum card to a whopping $895 earlier this year and offers perks valued at $3,500 to cardholders. Their platinum portfolio is now the fastest growing in the U.S. Consumer business; and they continue to attract a large number of new customers, particularly millennials and Gen Zs who represent greater lifetime value. Revenue in the second quarter was $19.6 billion, up 10% from a year ago, and net income of $3.11 billion was up 8%.

My Trade: Initially bought American Express for some trades but recent momentum has halted its growth. I am therefore now holding and waiting for it to either drop more before scooping up some or for it to bounce back to $350 to sell.

Takeaway: American Express is one of Berkshire's largest holdings, with 151.6 million shares, representing 13% of the company's portfolio. However, American Express stock is down 18% so far this year and currently sits 21% off its all-time high. @Captain's Treasure

$Constellation Brands(STZ.US)

Context: STZ caught my attention because it has a portfolio of well-known beer brands, including Modelo and Corona. Another reason I became interested was seeing Berkshire Hathaway build a position in STZ.

My trade: I bought STZ in several batches as the share price declined and later took profits when it recovered. I’m now looking back at what I learned from the trade.

Takeaway: One lesson is that following a respected investor can be a useful starting point but it shouldn’t replace doing my own research. I also learned that a strong brand doesn’t automatically mean strong near-term performance. Valuation, earnings trends and changing consumer demand still matter.

Breaking: We found a politician day trading a cancer treatment

New: Bill Gates' fund (Cascade Investment) just filed a new 13D/A on Republic Services $Republic Services(RSG.US)

📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: Berkshire Hathaway Sees AI Energy Opportunity After $10 Billion $Alphabet(GOOGL.US) Alphabet Investment - CNBC

Update: Google $Alphabet(GOOGL.US) is now up 25% since Buffett's Berkshire disclosed a $4B stake

Breaking: President Trump has disclosed more than 1,000 trades in June totaling up to $263M

$Apple(AAPL.US) Apple has been Berkshire Hathaway's largest holding for a long time, even though the conglomerate has trimmed its position in the iPhone maker in recent years (but not during the second quarter). Buffett once said that Apple is probably the best business in the world. That's high praise, and it's entirely warranted. Apple generates consistent earnings and cash flows thanks to its popular devices, especially the iPhone. The iPhone almost functions like a subscription that hundreds of millions of people renew every few years. Apple's customers are highly loyal. Because the iPhone has unique features and ways to interact with other devices within the company's ecosystem -- not to mention the large amount of data that is a pain to transfer to a competitor's platform -- Apple boasts a wide moat from high switching costs.The company still has significant growth opportunities. For instance, Apple has been integrating artificial intelligence (AI) features to improve its devices. This could help increase renewal rates and even bring new people into its ecosystem. Apple has an advantage, as it boasts more than 2.5 billion active devices in circulation, enabling it to distribute AI services very rapidly, including via software updates. With Apple now well positioned to finish the year strongly amongst the Mag 7 companies, I'm holding on to my current shares and perhaps look to add if it does pull back more. @Captain's Treasure