Berkshire Hathaway (NYSE: BRKa )'s subsidiary, New England Asset Management (NEAM), has recently increased its investments in Coca-Cola (NYSE: KO ), U.S. Bancorp, and Johnson & Johnson (NYSE: JNJ ), despite various industry challenges. The secret portfolio is part of the assets acquired from General Re in 1998.
Amid concerns that weight-loss drugs like Novo Nordisk (NYSE: NVO )'s GLP-1 receptor agonists could reduce demand for soft drinks, NEAM boosted its Coca-Cola stake by 80%. The decision was based on the company's global reach and brand value, indicating confidence in the enduring appeal of the beverage giant.
In the face of threats of a U.S. recession and potentially higher lending rates escalating credit delinquencies and loan losses, U.S. Bancorp saw an 11% increase in share purchases by NEAM. The bank stands to benefit from extended periods of economic expansion and increased interest income from higher lending rates, providing a buffer against potential economic downturns.
Despite ongoing litigation related to its talcum-based baby powder, Johnson & Johnson remains a secure investment for NEAM. The firm increased its stake in J&J by almost 18%, buoyed by the company's robust balance sheet, AAA credit rating from Standard & Poor's, and push toward pharmaceuticals.
The recent moves by NEAM underscore Berkshire Hathaway's investment strategy of backing companies with strong fundamentals and enduring market presence. This approach allows them to weather industry-specific challenges and macroeconomic uncertainties while providing potential long-term returns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.