Berkshire Hathaway Inc - Class A

Berkshire Hathaway’s increased exposure to housing-related businesses reinforces the view that, despite near-term headwinds from elevated mortgage rates, the long-term opportunity remains intact. Our interest in housing-related businesses is based on the long-term fundamentals of the U.S. housing market, which continues to face a structural shortage of single-family homes. The combination of structural supply-demand support, market-share expansion potential, and attractive valuations presents a compelling long-term investment opportunity.

Berkshire Hathaway is mentioned in the context of stock purchases, indicating its ongoing activity in the market. The letter notes that 'Warren Buiett’s Berkshire Hathaway among the buyers' of stock during a period of significant public offerings, suggesting its continued relevance in investment discussions. However, there is no explicit bullish or bearish stance taken on the company itself, as the focus is more on market dynamics rather than specific company performance or valuation.

The manager draws a parallel between Sigil and Berkshire Hathaway, indicating a long-term vision for capital management. They express a commitment to managing capital for decades, suggesting a belief in the enduring value of their investment strategy, akin to Berkshire Hathaway's approach. This comparison highlights the manager's intention to identify and capitalize on new trends and their winners, reinforcing the idea of a strong investment philosophy.

Berkshire Hathaway also entered the portfolio’s top ten holdings, supported by its depressed valuation and defensive characteristics. The manager highlights the importance of investing in high-quality businesses trading at depressed valuations that should prove resilient and benefit from any broadening or rotation in market leadership. This indicates a strong belief in Berkshire Hathaway's potential to perform well in the current market environment.

We purchased more shares of Berkshire Hathaway, increasing our investment to 5.5% NAV. Berkshire owns a portfolio of businesses, selected by two of the greatest investment minds in the past century for their durable competitive moats and inflationary pricing power. The company has recently begun repurchasing its own shares again, a signal that management sees value at current prices.

Berkshire Hathaway (BRK.B) serves as a foundational, defensive pillar of our portfolio. It provides stability, exceptional capital allocation, and a fortress balance sheet that thrives during periods of broader economic uncertainty. This resilience makes it a key holding as we navigate market volatility.

The letter mentions a personal investment in Berkshire Hathaway but does not provide any specific argument or directional stance regarding its future performance or valuation.

Berkshire Hathaway’s large position size magnified an otherwise modest gain to round out our top performers list.

Berkshire Hathaway’s large position size magnified an otherwise modest gain to round out our top performers list.

Berkshire Hathaway exemplifies the 'investing in investors' philosophy, as it has compounded shareholder wealth at extraordinary rates over decades. The company operates as a serial investor, deploying free cash flow into disciplined, programmatic acquisition strategies, which allows it to build a structural edge in price discipline and deal quality. This approach has led to significant outperformance, with Berkshire Hathaway delivering a 98% price return over our holding period, meaningfully outperforming the MSCI World Index. The ability to allocate capital intelligently and repeatedly is a durable competitive advantage in public markets.