I analyzed 400+ acquisitions Berkshire made from 1965–2024 And...
Kintsugi Investing@kintsugiinvest
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Feb 07, 2025
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I analyzed 400+ acquisitions Berkshire made from 1965–2024
And found the exact criteria Buffett uses.
His “secret” checklist is hiding in plain sight.
Let me show you (You might want to save this):
And found the exact criteria Buffett uses.
His “secret” checklist is hiding in plain sight.
Let me show you (You might want to save this):
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1. Hoard cash years before crashes
In 2006, Berkshire held $43B in cash.
By 2007, it was up to $47B.
By Q3 2024, Berkshire’s cash reserves reached a record $320.3B.
History rhymes.
In 2006, Berkshire held $43B in cash.
By 2007, it was up to $47B.
By Q3 2024, Berkshire’s cash reserves reached a record $320.3B.
History rhymes.
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2. Write put options during peak fear
In 2008, Buffett collected $4.9B in premiums writing puts on the S&P 500.
Continue to use similar strategies during market uncertainty in recent years.
Making money from others’ panic.
In 2008, Buffett collected $4.9B in premiums writing puts on the S&P 500.
Continue to use similar strategies during market uncertainty in recent years.
Making money from others’ panic.
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3. Buy companies with pricing power
2009: BNSF Railway ($26B).
2013: Heinz ($23B).
2015: Precision Castparts ($37B).
These businesses can raise prices during inflation. Winners.
2009: BNSF Railway ($26B).
2013: Heinz ($23B).
2015: Precision Castparts ($37B).
These businesses can raise prices during inflation. Winners.
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4. Negotiate preferred shares with high dividends
2008: Goldman Sachs deal – $5B preferred shares.
Annual dividend: $500M.
Plus warrants to buy common stock.
Money while you wait.
2008: Goldman Sachs deal – $5B preferred shares.
Annual dividend: $500M.
Plus warrants to buy common stock.
Money while you wait.
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5. Admits tech mistake
2016: Start buying Apple.
Acknowledge underestimating tech, including Apple and Amazon.
Even with reduced Apple holdings this year,
It remains his largest single portfolio position.
“I was wrong about the Googles and Apples.”
— Buffett, August 2024.
2016: Start buying Apple.
Acknowledge underestimating tech, including Apple and Amazon.
Even with reduced Apple holdings this year,
It remains his largest single portfolio position.
“I was wrong about the Googles and Apples.”
— Buffett, August 2024.
1:59
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6. Make best moves during market panic
2008: Buy Goldman at peak fear.
2020: Add $36B in investments during the COVID crash — energy, financials, and consumer goods.
2022: Increase stakes in HP Inc. and Occidental Petroleum during the tech downturn.
2024: Further increase stake in Occidental Petroleum to 28.15%, investing $409M more.
2008: Buy Goldman at peak fear.
2020: Add $36B in investments during the COVID crash — energy, financials, and consumer goods.
2022: Increase stakes in HP Inc. and Occidental Petroleum during the tech downturn.
2024: Further increase stake in Occidental Petroleum to 28.15%, investing $409M more.
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Focus on share buybacks during crashes.
2020: Berkshire buys back $24.7B of its own shares.
2021: Another $27B in buybacks.
Invest in himself when the market undervalues Berkshire.
2020: Berkshire buys back $24.7B of its own shares.
2021: Another $27B in buybacks.
Invest in himself when the market undervalues Berkshire.
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8. Look for “forever businesses”
Buy Coca-Cola in the aftermath of 1987 stock market crash.
Add more shares in 1988 and 1989.
Increase holdings to approximately 7.8% by 1994.
By 2024, Coca-Cola makes 11% of his portfolio, valued at over $28.78 billion.
People will always drink Coca-Cola.
Buy Coca-Cola in the aftermath of 1987 stock market crash.
Add more shares in 1988 and 1989.
Increase holdings to approximately 7.8% by 1994.
By 2024, Coca-Cola makes 11% of his portfolio, valued at over $28.78 billion.
People will always drink Coca-Cola.
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9. Ignore macro predictions.
2008: Buy when “experts” say depression.
2020: Buy when “experts” say collapse.
2022: Buy when “experts” say recession.
Focus on business value, not headlines.
2008: Buy when “experts” say depression.
2020: Buy when “experts” say collapse.
2022: Buy when “experts” say recession.
Focus on business value, not headlines.
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10. Never go all-in at once.
Aug 2008: Make initial bank investments.
Oct 2008: Double down.
March 2009: Triple down.
Average in over 6–8 months. Time beats timing.
Aug 2008: Make initial bank investments.
Oct 2008: Double down.
March 2009: Triple down.
Average in over 6–8 months. Time beats timing.
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Buffett’s secret checklist from 400+ acquisitions:
1. Hoard cash years before crashes
2. Write put options during peak fear
3. Buy companies with pricing power
4. Negotiate preferred shares with high dividends
5. Reverse tech skepticism
6. Make best moves during market panic
7. Focus on share buybacks during crashes
8. Look for “forever businesses”
9. Ignore macro predictions
10. Never go all-in at once
Which of these will you adopt?
1. Hoard cash years before crashes
2. Write put options during peak fear
3. Buy companies with pricing power
4. Negotiate preferred shares with high dividends
5. Reverse tech skepticism
6. Make best moves during market panic
7. Focus on share buybacks during crashes
8. Look for “forever businesses”
9. Ignore macro predictions
10. Never go all-in at once
Which of these will you adopt?
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We're Zee & @thehowietan:
• Financially-free investors
• Co-founders of Kintsugi Investing
• Passionate about helping others build & repair portfolios
Follow @kintsugiinvest for learnings in investing
Repost to help others grow ⚡️
x.com/kintsugiinvest…
• Financially-free investors
• Co-founders of Kintsugi Investing
• Passionate about helping others build & repair portfolios
Follow @kintsugiinvest for learnings in investing
Repost to help others grow ⚡️
x.com/kintsugiinvest…
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