I Analyzed Buffett's Top 10 Holdings. Here Are The Best (& Worst)

There's a question bigger than the stock market, a trillion-dollar question in fact. Is it Berkshire or Berkshire Hathaway? Well, either way, the fund is sitting on billions of dollars in cash, and you might be wondering, with Buffett gone and 2/3 of the remaining portfolio invested in just 5 names, whether or not they're worth following anymore. So in this video, I'm going to break down Berkshire Hathaway or Berkshire Hathaway's top 10 holdings Including a bunch of their recent sales, which are just as telling, using the process that I developed back when I was managing money in the city, which I've also used now to grow my own portfolio to just over two million quid this year. Let's get into it with the biggest holding by far of Berkshire, Berkshire and Buffett in Apple. I think we can straight off the bat put this as an S tier stock. It's still 22 percent. of their overall public portfolio, which is insane. We can see that the fundamentals are outstanding and relative to peers in the same sector, which is the white dot, it also smashes them on pretty much every metric. However, insofar as the valuation, let's see, when did Buffett first buy Apple? Okay. First quarter of 2016. The top chart shows you the valuation. So when it appeared to be cheap, So below the average price-to-free cash flow in this case, which is a measure that Buffett himself does follow, or when it was relatively expensive, when it was above there. And you can see that at the time that Buffett was buying, it had been cheap for a number of years. Of course, it was Apple on an amazing run, but it was still around fair value. So Buffett did buy well. And for him to have held on until the last couple of years, I think it was '24 and '25 that he began scaling out, I think this has been a bloody good call. So that's why it's such a big position in his portfolio. It's an S-tier company. Given the current valuation, I'd be inclined to just knock it down to A-tier. So we'll base this on how does the portfolio look right now. Now, the next on this list is American Express. I've got one, you've probably got one, and it's not rude. It's American Express. It gets you Avios points. It's not S because of the fact that it's quite cyclical. It's a credit card company, so it's very sensitive to the consumer and to consumer credit conditions, therefore interest rates, in other words. So it's not the kind of company that I would want to own forever. Ideally, I want companies that are more stable. I think there's a case for it to be— that could be argued to put it in A. My gut feel is that it's B, could be in C. So let's take a look at where it ranks in the Universe, around 200th out of 750. So just outside of the top 20%. That's a pretty solid profile. Top 25% company so far. I'd say A tier. There's quite a premium at the moment. Let's take a look at the chart and see how it compares recently to the market. And it's actually slightly outperformed in the last couple of years. So if we just go back to the valuation, It's probably around the time that it was cheap. It was cheap throughout 2022 and 2023. So in other words, if you bought before the beginning of 2024, you bought at a great price. And look at where the stock began to break away when enough people realized that it was cheap. And whoosh, that's what's happened next. If we zoom into that point where you might have been buying, you've done very well over the market. You've returned like 130%, 140%. Rather than 80 to 90%, otherwise putting your money in the S&P. So this is why the fundamentals matter, guys. I know it's a lot easier said than done, so to speak. We pros, or former professionals in my case, always emphasize fundamentals, and I know how sexy it can be to just look at charts. This shows you the power of fundamentals, guys. By the way, there's a link to this model along with all of the other tools that I use in my videos in the description below. You can try it for free for a week. Let me know what you think. So moving on, that's a big old position. Is it in line with the market or slightly above? Well, if it was closer to fair value, I would give that an A tier. But given that it's an A tier stock, a cut above the market but also a cut above in terms of how expensive it is, I'll put that in line. I think it'll perform roughly in line with the, with the market going forward. So next up, Coca-Cola. Another household name. And believe it or not, between these 3 companies that we've looked at so far, this makes up just over 50%. I think it's 52% of the portfolio combined. So if some people complain about the S&P, I do, being concentrated in just 10 names, for example, it's about 40% of the portfolio. But Buffett's taken it to the next level where he's got half of the public portfolio in just 3 names, 10% of the Dow 30. So anyway, where would we rate Coca-Cola? It's obviously not F tier. I don't think it's C, less than the market. It's not S tier. It's either going to be A or B, and I don't think it's keeping up with Apple, if I'm really honest, unless it's a very fair value currently. I would imagine this is going to be in line with the market. Maybe you could get knocked down if it looks expensive. So let's Do the same again. We'll look up Coca-Cola. Out of 750, Coca-Cola is in 450th place. So this is much lower than the 2 companies we've seen so far, significantly so compared to other consumer staples. The white line, it doesn't exceed in terms of efficiency or valuation for that matter. It's also massively behind in terms of growth and reinvestment. So its ability to compound, which is compounding profits internally that then is reflected in the share price over the long term is impeded. So I'm actually going to scroll down now and take a look at the valuation. And this is surprising. It's actually at a 10% discount to fair value. So it is, to say the least, fairly valued currently. Might even be a little bit attractive. I believe that's a technical term. Bear with me, I'm thinking out loud. This is surprising, guys. This has caught me off guard. I thought it was a really old, boring, fuddy-duddy stock that was probably at a premium because everybody knows about it, but it's still growing cash. So that's interesting. That's interesting. What I can say straight away is that it's not C, that's for sure. It might be B, but given the valuation, I might be inclined to knock it up to A, potentially outperforming the market. When was the last time— or let's look at the 5-year chart and then we'll look at the last time that it was cheap at a similar valuation. So over 5 years, it's slightly underperformed the market. It's done about the same, give or take. It's slightly less volatile, so it can be more defensive when the market's selling off. And broadly speaking, it's done pretty much the same as the market over 5 years. So my intuition to put it in line, I think is valid. It's vindicated there. However, when was the last time it was basically an 8% discount? Okay, we've probably got to go back to, where would that be? Beginning of 2024. Similar to, who did we just look at after Apple? Similar to American Express. Buffett's of course owned Coke for a hell of a long time. I think actually since the year I was born back in the '80s. But yeah, it's performed in line even when it was fairly valued before. So I'm not— I can't get massively excited about this. It's B. You could maybe move it up to A, but I don't think Apple and Coca-Cola are comparable. I would then be bumping Apple up into S tier. So I'm going to leave it in line with the market. Amex ranked higher but also traded richer. Whereas Coca-Cola ranked lower, isn't terrible, but ranked lower, but is trading at a slight discount, only a slight one. So I think I'm happy with this. Let me know in the comments, guys, if you have a different opinion, if you see things differently. So let's now take a look at the next one, Bank of America. This is a stock that Buffett is synonymous with. It's of course a financial per the name. I think it's a better quality one as banks go, but it's unlikely, at least for me, your opinion may differ and Buffett's may, of course. It's unlikely for me to ever place a bank in A tier or S tier for similar reasons to American Express. They're really cyclical. They're really sensitive to the economy and to interest rates ultimately because of that. So I would imagine it's probably going to be B or C, but let's take a look. We've got Bank of America. It is— oh, okay, in 500th place. It's a lot of red here. It's not high quality. As financials go, it may be higher quality, but we don't have to invest in financials or own cyclical sectors. We can just focus on owning the best companies, guys. So you don't have to look at banks like Buffett seems to love. Yeah. Okay. According to free cash flow, which again is not always the best measure, book value is often better, tangible book value for banks. It appears cheap now, but it's just not quality to begin with. So what I'm going to do with Bank of America, Unless you think that interest rates are going up, where then it's becoming an expression on macro and a macro play rather than stock picking. Yeah, I'm going to put it in C. If we take a quick look at the chart, just as we've done with the others, I imagine it's probably performed quite well with the reflation trade post-pandemic. If we look at this going back to that period, underperformed, underperformed, Where, where are we? 2021, rates started going up in 2022 when the market peaked. It's still underperformed, guys, even in a rising rate environment. So I don't think anything is enough to see big banks like the Bank of America sustain outperformance. So for that reason, I'm leaving that on C. It's not F tier, but it's C at best. Okay, next up Wherever got Occidental, is that how you say it? Is it accidental to say Occidental? Oxy. Okay. Oil and gas company. Bloody cyclical again. Even more cyclical than financials because there's all of the capital-intensive drilling or whatever it may be, refinement, and it takes a lot of money. And if the cycle turns or oil prices just drop, which are prone to volatility, right? They've been going up recently, but if the opposite happens, Certainly when there's a recession, oil prices drop. It's capital intensive. You've got to spend all of this money. You've committed all of this spend to machinery and all of this plant. And the price of what you sell has maybe fallen in half. So I'm going to begin with it lesser than the market. And from my perspective, I wouldn't likely invest in these companies, same as the banks, but it's probably going to be a C. Let me stop waffling and get to where it ranks here. 524 out of 750, so it's towards the lower third, bottom third of companies. Let's click in. It's obviously quite a narrow footprint here that you can see, and yeah, it's expensive at the moment. If I just shift— I've got this little picture-in-picture thing— if I just shift this up here, you can see down at the bottom— sorry if I've been blocking this in the last couple Um, with my big head, the globe. Um, bear with. You can see that it's actually trading rich now. So the— we've had the, the spike following the oil shock, which is just the same as otherwise trading the underlying commodity. Just pull it up quickly, pull up crude, and this is on weekly. So you can see it's basically the same chart. Boring, boring, boring, boring. Oh, hello! And then it's come off. And, uh, where are we? Boring, boring, boring, boring, boring. Hello! And now it's tailing off. But the difference is that it's now expensive. So would I own this? No, I wouldn't. It's C tier. Is it F tier? Um, given that we're looking at Berkshire Hathaway's holdings and not, say, Cathie Wood's holdings, right? I'm actually going to put this— oh, I don't know. Am I going to put it in F? It's unlikely that we're going to find many truly poor companies because Buffett does know what he's doing, even if his edge might be going a bit. These are, generally speaking, mega caps, and for a lot of them, they're quality companies. On that basis, I'm going to stick it in F. There's no way I'd buy it. Even if it was cheap, I wouldn't buy it. I'm just not interested. So for that reason, I'm oh, I'm gonna put it in F. I've got to stop doing the what was his name? Dragon's Den impressions. Duncan Bannatyne. Duncan Bannatyne. That was it. Anyway, moving on. Oxy. Now this gets interesting. Google Alphabet. Now this, as I've said in my other videos, for a period of time was my favorite company in the world. It's why I'm creating this content, why I'm engaging with you right now. And as a consumer, I think it's a great place to be. I love the products. I use the storage, the cloud. I use so many of the services. We all use bloody Google Search. I've started using a bit of Gemini as well, even if to say that LLMs are putting pressure on the business, how fickle they were. And people who are bullish, myself included, who have been bullish on Alphabet for many years, been vindicated. There was all that worry about search. There was underappreciation for cloud going back a few years. And Alphabet, let me tell you something, is an S-tier company without question. However, I know something you might not know unless you've been nerding out on valuation charts like I do constantly. And it's that Alphabet, whilst it ranks in about 50th position So in the top decile, top 10%, beautiful footprint. It is hella expensive, as I believe they would say in the United States of America. It is hella expensive. Now I've told you the story in other videos about selling my house, going to cash in everything in my life, and then being within about $7 Waiting months, months, months within $7 based on the multiple of where I would buy Google and have gone all in with all the proceeds from selling my apartment. It wasn't like a 4-bed mansion or anything, but still, it was my first place. Um, and yeah, with the proceeds, I was going to go all in on Google. It didn't quite trade. That was $7 away. I've waited for months with discipline. And whilst I have owned it in my pension, and other accounts, that was potentially a game changer. It was around this time when it was severely undervalued. And again, I had people in my ear saying, oh, it's over for tech. They're just not going to recover. Rates are going up. This is it. We're sawing Y2K. All the boomers booming on, and they were wrong. However, it is now at a 164% premium, which is shocking. Whilst they'll likely grow into it, I don't think it can grow enough to bring this back to a sensible level for the foreseeable future. So for that reason, I'm not putting it in A tier on the basis of valuation. And it is pretty cyclical. You've got to remember, in a recession, it ultimately sells advertising. And even if its user base, its products are pretty sticky, Remember, it's making money from advertisers, guys, not just from us, you and I, using Google Search and YouTube Premium and whatever. Like, advertisers, just in the same way as Meta, pull back their spending, and that means that they're just not sponsoring the platforms, and then the money isn't there for them to pay out en masse. So I mean, 2022, 2023, what a trade that would have been. What a trade it was. Um, But it's, it's, yeah, it's just too expensive to have in S tier, guys. So Buffer interestingly has been increasing his position aggressively, and we're talking in the last quarter, last couple of quarters. So that is a very unusual move for him, given that he tends to be more valuation sensitive than me when it comes to looking at Quality companies. I think he he has more of that traditional value slant, or at least that's what's associated with him and Benjamin Graham and so on. It's just far too expensive to buy at this level. So this could be one to scale into a bit of the old dollar cost averaging perhaps. It's difficult to buy right now. It's the right company to own. It'll outperform the market, I believe. But I can't put it in S. that reason. So well done to Buffett, although it did take him a long time to capitulate and actually buy into big tech. So I think a poor decision long-term on Google. Now he's finally bought and he's buying at extreme valuations. So he's very late to this. Time will tell how it pays off for him. Now, another name that he's been scaling into also is Chubb. I believe they're an insurance company. in America. So let's take a look at them. So the ticker is CB. And yeah, it is indeed insurance. So the footprint is pretty broad for a financial, 233 out of 750. So it's in that top third. Again, considering that this is a comparison against high-flying tech and all these other super cash flow rich quality businesses, it takes a fair bit for for financials to be up there. So let's give it the benefit of the doubt as we're looking at this. The return on capital is lower than peers. That's the efficiency measure. But everything else is actually pretty bloody high. And looking at the valuation, I know that it's— again, we're using free cash flow here by default for a financial. It has looked pretty darn cheap for some time now, since the pandemic, in fact. And I don't see any AI risk flagged, which you might get with certain insurers if risk could be priced more accurately, and therefore there could be efficiency gains or competition, competitive threat to the margins that are in the premiums that are otherwise being collected by insurers. But in the case of old Chubb that Buffett's piling into, I think this looks like a great call on Buffett's behalf. For whatever it's worth coming from me, looking at this through my own lens and for my own money, I think that this looks good for him. Will it outperform the market? Well, I think given full range of my universe, I wouldn't be rushing to buy an insurance company over Alphabet or Apple, but benefit of the doubt for Buffett here. I think the ranking is higher than both Amex and Coca-Cola. And the price, the valuation is more attractive, more favorable than either of those as well. So it's going to be up there. I think we can put that in A tier. Feels weird for me to say that again with it being in a sector that I wouldn't tend to own, but it has great linearity. So smoothness of that trend, the consistency. And can we see the last time? Well, it's been cheap for a while now. Yeah, it's hard really to tell. It was an extreme move obviously in 2004. Yeah, it's hard to tell when it's been this cheap. It's been cheap for a while. So I think this just looks like a good call, a very good call by Buffett. Over the last 5 years, it's outperformed the S&P. So big up. That seems to be the right decision. A tier. So, so far we've got no S-tier stocks quite. Maybe we could tip Apple up there. We've got 3 in A, 2 of them in B alongside the S&P 500, and then 2 down at the bottom in Bank of America and Occidental. So let's take a look at the next pick here. So Moody's. Now Moody's, of course, is a ratings agency. It has analytics, I think mainly for the bond market, for fixed income rather than stocks, but that's getting a bit nerdy. If you're in the markets, you know, you know. However, let's think about where this ranks. I believe that Moody's is typically an A-tier stock, but for an important reason besides whatever the valuation might be, I might put it down into B. So let's begin with it here and I'll show you why. So for some of these ratings agencies, and again, you can see this for any and all stocks in my model, Take MSCI, for example. There's also S&P Global, which licenses the S&P 500 index and formerly the MSCI World for MSCI. You can see that they have a high threat of AI disruption affecting the business long-term. So I wouldn't own, generally wouldn't own companies that have this risk flag. This has caught big investors like Terry Smith, the British Buffett, out in names like Intuit, for example, and some of the other holdings of his that are on here. So in the case of Moody's, is it MCO? Actually, we don't see the AI risk flag there, which is interesting. Now, of course, there's no guarantee that there won't be a threat of disruption. However, analysts that have studied the sector haven't flagged this risk yet, it seems, for Moody's. So it otherwise ranks in 50th place. So this is a bloody strong company that has an exceptional footprint. And scrolling down to the valuation, you can see that it's actually at a 10% discount. So I cannot Knock this down. I was incorrect on the perceived AI threat, which is applicable to S&P Global, to MSCI, but seemingly not to Moody's. So I won't knock it down on that basis. The footprint is definitely A tier. And yeah, the valuation puts it at a slight discount. I can't say Moody's is S tier. But it's a strong candidate within A tier, I think. So again, this looks to be another good position that Buffett has on. We can't really see since the crisis a time where it kind of tagged the value line apart from very briefly April 2025. Let's just have a quick look since then. The stock appears to have gone sideways for quite a while, so technicals don't look too, too confident. But that's often an opportunity when there's fundamental reason to, to own it. I've got to say, I confirmed. So if we go back to sort of April time, yeah, it was cheap. That was recognized. It outperformed the market for the next year pretty much. But overall, it's been languishing. So I'm actually going to look upon this favorably, more as an opportunity than something that the market knows that we should worry about, given how the fundamental profile stacks up and the valuation stacks up. And of course, how Buffett continues to own it, or Berkshire Hathaway continues to own it. And it's a pretty chunky position. I know they've got some mega ones, but it's still sizable at 4%, 5%. So I will keep that as A. So we're doing pretty well here. I think Buffett's portfolio, respectfully, I don't want to sound arrogant in passing this judgment, looks better than I expected it to. I thought a lot of this stuff was going to be B tier and a lot of the cyclicals would probably be in C, so it might underperform the market given how Berkshire Hathaway itself has been underperforming for a year and over the last 10 years has been flat, the same as the market. Or it's gone up, but it's performed in line with the market over 10 years, I should say. So yeah. Okay, moving on. What's the next one? Kraft Heinz. So this is the last of the top 10 positions, and then we'll look at some of the sales. Let's take a look at KHC. Oh wow, 750 out of, I think, 757. I don't know if this is a data issue. I think the data is available. I can see a score there, but it's just so low and it looks cheap, but it's been cheap forever, so it's probably cheap for a reason. Let's pull up Kraft Heinz and I'll take Jesus. Yeah. Okay. Well, this tells you what you need to know. It's a seemingly poor company and geez, I had no idea that the chart would look like that. This is shocking. So a good example perhaps, or a good lesson in saying what's cheap could be even cheaper tomorrow, and what's cheap is often cheap for a reason. And that's the reason, guys. So I'm surprised that, uh, 3% of the portfolio is still in this company. This without question is F tier. In fact, I'm going to move— no, I'm not. I'll keep it down there as well. Those 2 are F-tier stocks. So can we spot any mistakes in terms of the sales or any good calls amongst the— how many remaining? 4 names that Berkshire Hathaway has sold in the last few months. Now we'll rank overall Berkshire overall at the end. Let's begin with Chevron. It hasn't exited Chevron, but it's been cut in the position, and I think it's going to be a similar story to Occidental. I'd imagine it's going to be in C or possibly F if it had a more compelling profile. So let's go ahead and look at Chevron. Big Dow company, 600th. What was Oxy? Occidental— oops— was 524, so it's a bit higher. Chevron is lower. Small footprint, relying on price trend. Profitability is quite good, that's strong. Durability, the margins are also pretty strong. Efficiency is not too bad. And actually, it looks like the fundamentals have caught up to the price. So it had pulled away and it appears to be broadly in line now. It was cheap until 2019, so we can have a quick look at that. And this is Chevron, was cheap until 2019, roughly. If we put the comparison on to the S&P, okay, it's underperformed the S&P, guys. This is the, the reason why I avoid things like oil and gas. Generally speaking, things like financials as well. They're too cyclical. Even if you find a better quality one, which I can't say this is necessarily— Occidental might be an example of a slightly better quality one— it's still likely to underperform. And that's the name of the game, guys, is to build a portfolio that beats the market. Otherwise, you might as well just buy the S&P. Right. So Chevron, there's no way I'd own that. It can go in F. I think that's a fairly clear cut. So Buffett, it's probably the right call in my view to, to be cutting that. However, if it's a stock that he's liked for a long time, he's owned, surely he's going to like it more now that it's cheap for the first time in a little while or a few years. Doesn't seem to be the case. So he's throwing in the towel there. Or on his way to doing so. Now, this is where it gets really interesting because these are names that he's exited completely. Let's begin with Amazon, which probably comes as a surprise. You might think that this is an S-tier stock. Let me tell you, it's not, in my opinion, and clearly in Buffett's. So what's changed? Is it A? Is it B? Or is it even C? Let's take a look. So you think cloud, you think the packages that come through your door every day, you think Bezos, but it's actually ranked middle of the pack, 428 out of 750. So slightly below average for this overall global quality screen. Has tremendous growth and reinvestment because it's not paying out dividends, it's reinvesting the profits. into the business. If only it had better or higher returns on invested capital, it'd be able to compound those further and create more shareholder value, which just means share price goes brrr, as the meme used to go in the pandemic. But yeah, it's bloody hell. The amount of cash, the capital expenditure is off the charts for Amazon and a bunch of similar AI infrastructure or AI scalers, cloud companies as well. Last time it was cheap. Well, hasn't been cheap since beginning of 2023. Let's take a look how it's done since then. Call it beginning of 2023. Well, it depends on exactly where you fixed it. Up there it's in line. Down there it's outperformed considerably. You probably give it the benefit of the doubt. When Amazon was cheap last, when it was last cheap, it's been on a good rally since, but it's so bloody expensive now that yeah, this is a risky one to own even if you're bullish. So maybe this was a good call by Buffett to to exit it. It's kind of, as the kids would say, mid. Maybe a if you were to give it the benefit of the doubt, but given the valuation now. Would I have it in line with the market or maybe slightly below? It's hard for me to put this in the same category as Bank of America, but I think I've got to have discipline here. Amex and Coca-Cola, I think, were ranked higher. Let's see. Amex was, yeah, 200 rather than 400, considerably higher. Coke, I think, was around the same. Coke was about the same, but Coca-Cola had a better valuation. I am— I'm going to put it in C tier, guys. I think it could underperform the market, which sounds nuts to say, and I'm not doing it to be provocative, but, um, yeah, it's not one that I'd buy here at this moment. Remember, this is taking valuation into account as well, as it is for all of these companies. So I think a good call on Buffett's part to sell. Now, the others in here, UnitedHealth, I don't know too much about them. It's very complex when it gets through to healthcare systems in America, just as if you asked an American about how the NHS works and government funding, all this stuff, it gets complicated. I don't claim to have any knowledge of UnitedHealth because again, it's not a brand that I can relate to as a consumer. So I don't know, are they B, are they C or A? I don't know. Let's begin with B. Refer to the model and go UnitedHealth, 362 out of 750. It's in the middle, so that's B tier to begin with. You see this though? I don't understand the business well enough to know why this is flagged. Presuming it's to do with scripts or whatever, but it's, um, It's it's come under fire. It's been in the not the SaaS apocalypse, but it's come under fire at the same time as the AI risk trade. It's been negatively affected by it. Slight slight discount, but the clue here is that the the the fair value has fallen along with the share price. So it's not that the share price is irrational. It's not that it's fallen harshly, it's fallen justly. So it's not cheap, it's middle of the pack, but it's uninvestable because it has the AI risk flag. So this may be a little bit harsh putting it in F. Buffett's also exited it. Of course, you might have it there apart from the AI risk flag, but for that reason, I wouldn't be touching it. Now, Visa also has an AI risk flag, and this is where I might just overlook it because it is the 6th highest ranking company in the entire universe. It is arguably the greatest compounder or example of a quality company of any in the S&P 500. And you can see the footprint here. It's tremendous. It isn't too expensive. So whilst there is a little premium, and it has been cheap until very recently, where I liked it, I was looking at it favorably for that reason. You could, yeah, you could still make a case for, for owning this because Network effects in short are essentially like a moat for a business like this. It's very hard to get credit cards or essentially Apple Wallet cards in everyone's phone or in everyone's pocket, in everyone's hand. They own that network and they're basically like a toll booth or toll road for global payments. It's an incredible business, and I'm surprised that Buffett has sold it. And I believe he's also sold Mastercard, and the two are basically one in the same. So this one I don't agree with. I actually think that having been sideways for a little while, it might be due a new momentum and a bit of a catch-up. You can see that there are some reservations at the moment around this. It's been a lot of inflation fear in the market, but looking at this profile, it is S tier. It's otherwise S tier, guys. But given the flag, would it be a bit obnoxious of me to still put it in S? It almost balances it out and makes me downgrade it to A. And I think I'm going to do that. I feel better about that. If it was super cheap, we'd be going for it. It is Visa. It's not a new technology. It has network effects. It's defensible. It's high quality, but it's not changing the world. I don't see where the innovation is coming. There's still going to be presumably a hell of a lot of growth in emerging markets, for example. But I don't think it's S despite the ranking. There's that AI risk flag, and it's not that cheap. Could be argued. I'm going to put it in A. Buffett's also sold. We've got to remember that for what it's worth. So just to look at the chart, which isn't screaming higher either, so the momentum isn't there. Look at the five-year performance. It's actually underperformed the S&P. When was it last cheap? That's the question. Well, until recently, but how about the chapter before that? I remember it was struggling around here because I was managing money and I had an investment in it around here for the fund. Let's say it was cheap until August 2024. See how it's done since then. Uh, September, August, September. Yeah. Okay. Depending on the fixed point, it had initially outperformed and then it's ended up pretty much in line with the market. So I don't think this is S-tier for those reasons. On balance, still ranks bloody high. Give it the benefit of the doubt in terms of AI risk to not otherwise exclude it. But I think I've got to detract a ranking for that and also the lack of momentum. There's still something that people are a bit uneasy about. that you wouldn't otherwise see in the likes of Apple or perhaps Alphabet when they have a similar S-tier rating or they're in like the top few percent. So last but not least, or maybe least, we'll find out, is Domino's Pizza. Feels like ages since I've had a Domino's, which might be telling. Let's see. So Buffett has exited Domino's. Is it in the universe? It is, 160th. So that's pretty high. It's in like the top 20%. That footprint looks good. It beats its competitors in consumer discretionary, so they're the white dot specifically. I think that looks very good. What about the valuation? Oh my goodness, Jesus, this is heavily discounted. I haven't even looked at this. I haven't seen this before. I haven't looked at the valuation, so this is all top of mind. Jesus. This looks like an absolute bargain. I did say I can't remember the last time I ordered a Domino's, but then again, I have been in Asia and sunning it up for the last 3 years. So, we have more artisanal fare coming from independent pizza restaurants and all these options here in a place like Bali. But anyway, not to brag. This looks too good to be true. What's happening, brother? What's going on here? Let's take a look, shall we? DPZ. Hmm. What is going on? What's happening to Domino's Pizza stock? We all have to start somewhere, guys, with our research. You know, Even former pros, we have to use Google initially. What is it? It's experiencing a modest downward slide. That sounds relaxing. Okay, it fell short. Who cares? Analyst downgrades. Who cares? Why? I don't see it. So competition and costs. It faces intense value deal competition. Who cares? Is this consumer spending being squeezed? Because of rising fuel costs, maybe it is. Is that permanent or is it transitory? It's transitory to use that horrible term from the pandemic around inflation. Well, it didn't quite prove to be so transitory. But Loop Capital downgraded them from buy to hold. Who cares? That if you look at this objectively. Ranks in the top 20%. You can see the footprint is attractive for that reason. It's not deficient in any one area, and it is very cheap at the moment. That was when it was 24% off. The last time it was at a 40% discount was back in 2010. The last time it was as cheap or as close to this discount And it still wasn't close. That close was May 2023. I guess this is this is a consumer play when worried about consumer spending. Sorry, guys. I have to shift the picture in picture up so you can see it. There's a discount heavily discounted. So this one, unless Buffer is an absolute genius in predicting macro and consumer spending, which isn't his shtick, I would say that this looks like a mistake. In fact, looks like an opportunity to buy. And I'd put Domino's, dare I say, up in A tier. It's above the S&P on both quality profile and valuation. I can't call it the only S-tier stock though. Is that mad? But based on what we've seen, guys, I don't see any other Like S or A tier fundamental profile that's also at such a discount. Am I going to do it? Right, screw it. Domino's Pizza, after all of that, is a truly elite stock, if maybe the pizza isn't. So let's take a look now at roughly where this is distributed, and I'll give my ranking for Berkshire Hathaway overall, and then look at how the better companies in this list have compared to the overall market. And also I'll throw in the top 10, excluding those with AI risk from my model, and we can see how that hypothetical portfolio would've compared as well. Okay, so the blue line is the S&P and the green line Are the S and A tier stocks amongst Berkshire's holdings. And unfortunately, what we can see is that at first impressions, they've underperformed over the last year and they're actually trailing year to date in the same way that Berkshire Hathaway is itself. So it could be that Berkshire Hathaway's picks, even the ones that are better or above average— let's make sure we've got the correct one. I think that was Brooks MacDonald. There we go. Let's see where that ranks. Pretty much in line with Berkshire Hathaway overall. So it does seem as though Berkshire Buffett has lost his touch or their touch. But at least what we don't have here is just look-ahead bias where we've otherwise selected big winners, companies that have grown the fundamentals massively, have seen really attractive price trends that we've otherwise been seduced into ranking favorably. Because remember, we've got a valuation tilt to this where we have handicapped or penalized companies that are otherwise great but are just ridiculously expensive. So we've missed out on that performance. And that's probably the reason why at this point, looking back over pretty much any period, whether it's year to date, 1 year, 5 years, these better quality picks as things stand now at this point in time don't look so good historically. That's why they're cheap today is because they've not realized their potential historically, if that makes sense. Now, as an alternative to throw my hat into the ring, what I said I'd do is take a look at the top 10 companies here, excluding those flagged with AI risk. So the 10 highest stocks globally, it should be said. So these aren't only within the US like Berkshire Holdings. to see how this compares. So is there any value in fundamentals? I hope so. After all of that, let's go ahead and add this comparison. And there you go. So what this tells us is rather than restricting ourselves to looking for ideas within Berkshire Hathaway's holdings, which many people are drawn to do given the press coverage that Buffett still gets as a name. You could instead be looking within the broader universe using this tool. If you want to get access to it, as I say, there's a link in the description for you to try it out and building a portfolio of winners like this that took no time at all. I'd always encourage you to do further research. This is literally just taking the top 10, skipping any that had AI risk, and it holds too over the last year. It's even more apparent. Up nearly 50% compared to half that in the S&P. And Berkshire's best holdings, in my opinion, using the same model, returning only about 12%. I feel like I've learned a lot with you here today, guys. If you want to watch another video like this, then check this one out, which YouTube thinks you're going to love. And remember, Alphabet is a great stock.