The Motley Fool

How to get a slice of Berkshire Hathaway on the ASX

Nearly every investor in the world has heard of the legendary investor Warren Buffett, he’s one of the richest people in the world.

His ability to compound returns at a fantastic rate for decades has grown his personal wealth substantially. He has also done amazing things for the shareholders of his investment conglomerate company, Berkshire Hathaway.

Berkshire Hathaway has grown into one of the biggest companies in the world with Warren Buffet and Charlie Munger at the helm. It is known for not paying a dividend, believing that it can achieve a better result for shareholders by keeping the cash and re-investing the money.

There are a few investment companies on the ASX that produce commendable returns year after year. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is the company in Australia that is most often likened to Berkshire Hathaway thanks to its large positions in a handful of companies.

Sadly there isn’t a direct way to invest in Berkshire Hathaway on the ASX. However, there is a listed investment company (LIC) on the ASX that has Berkshire Hathaway shares as the majority of its assets.

The listed investment company is called the Global Masters Fund Limited (ASX: GFL). It may be unfamiliar to most investors because it only has a market capitalisation of $15.6 million.

At 28 February 2017, 74.6% of its portfolio comprised of Berkshire Hathaway shares.

Over the last 12 months Global Masters Fund shares have risen by 23.8% in value, which easily beat the market average. Most investors in the world would like to own Berkshire Hathaway shares.

You may be wondering what the other 25.4% of the Global Masters Fund portfolio comprises of. At 28 February 2017, 18.3% of its portfolio was Flagship Investments Limited (ASX: FSI) shares and 7.1% was Athelney Unit Trust plc shares.

Foolish takeaway

Owning Berkshire Hathaway shares is prestigious but sadly not possible on the ASX. The next best thing may be to own Global Masters Fund shares. This LIC doesn’t pay a dividend, but the share price could grow steadily from the current price of $1.80.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.