Want to buy shares in Warren Buffett’s Investment Empire before 2024 ends? Consider these 5 great Vanguard ETFs that own Berkshire Hathaway stock.

led by Warren-Buffett Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is known to have a large amount shares in public shares like now Apple, American Express, Bank of America, Cokei Chevron. But most of Berkshire’s value comes from its other assets, which include insurance companies, BNSF railroad, Berkshire Hathaway Energy and a host of retail, service and manufacturing companies.

Exchange traded funds (ETFs) held by Berkshire Hathaway offer a way to take advantage of Buffett’s investment empire while maintaining diversification. Berkshire Hathaway shares are a holding in many funds, including low-cost ETFs offered by investment management company Vanguard.

Here are five Vanguard ETFs with Berkshire exposure worth buying now. But first, here’s a look at why Berkshire is in a unique position heading into the new year.

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In August, Berkshire became the first non-tech company to reach a market capitalization of $1 trillion. But Berkshire has had a turbulent few months since then, with a market cap of $977 billion at the time of writing.

It’s been a uniquely heady year for Berkshire. Buffett has sent several warning signs to investors by trimming or selling positions and raising cash, indicating that Buffett and his team may view the broader market as overvalued.

The warning signs have increased further in recent months as Berkshire did not buy back its own stock in a quarter for the first time since the third quarter of 2018. Berkshire’s net cash position is at an all-time high and its year of net stock sales. so far through the September quarter are their highest ever.

On paper, Berkshire is arguably the most pessimistic it has ever been. But that doesn’t mean buying the company is a bad idea. For starters, its $325 billion in cash and Treasuries basically means that almost a third of Berkshire’s value is in cash. The total value of Berkshire’s public holdings is $300 billion, so the rest of the company’s value is in other assets, such as the insurance companies, railroads, and other businesses mentioned above.

Berkshire is a stable business with many advantages in today’s relatively expensive market. He has the dry powder needed to load stocks or make acquisitions when he thinks valuations make sense. Their businesses are stable vacancies that tend to grow gradually over time. They are not the type of companies that can deliver spectacular growth, but they also have what it takes to withstand an economic slowdown.

Some investors may want to buy Berkshire Hathaway stock instead of an ETF because it’s already a fairly diversified company. However, investors looking to pair Berkshire with other stocks may want to take a closer look at the following funds.

Given its size, Berkshire represents a large part of the financial sector. It also tends to be included in value-focused funds. However, Berkshire is excluded from income-oriented funds because it does not pay dividends.

Buffett prefers to use excess capital to buy back stocks instead of paying dividends because it creates more value for long-term investors. Given Berkshire’s historical returns, Buffett has been very correct in his decision not to pay dividends on Berkshire stock.

ETF	Percentage of Berkshire Hathaway Fund (Class A and Class B shares)	holdings	Expense ratio
Vanguard Financials ETF (NYSEMKT: VFH)	7.7%	409	0.1%
Vanguard Mega Cap Value ETF (NYSEMKT:MGV)	4.5%	136	0.07%
Vanguard S&P 500 Value ETF (NYSEMKT: VOOV)	4%	437	0.1%
Vanguard Value ETF (NYSEMKT: VTV)	3.9%	335	0.04%
Vanguard S&P 500 ETF (NYSEMKT: VOL)	1.7%	504	0.03%

Data source: Vanguard. Chart by author.

The Vanguard Financials ETF is a low-cost way to reflect the performance of the financial sector. The fund has exposure to major diversified banks such as JPMorgan Chasepayment processors com visainsurance companies and more.

The Vanguard Mega Cap Value ETF, the S&P 500 Value ETF, and the Value ETF are all similar funds. The Mega Cap Value ETF is slightly more concentrated in larger companies, so it has a slightly higher weight in Berkshire than the other value-focused funds.

The best fund for you will depend on the diversification you want. The Vanguard Value ETF has the lowest expense ratio of value-focused funds at just 0.04%.

The fifth fund on the list is Vanguard S&P 500 index fund. With $1.37 trillion in net assets, the fund includes low-cost investments at scale. The size of the fund allows you to charge just a 0.03% expense ratio, or just $3 for every $10,000 invested.

Berkshire is one of the fund’s largest holdings, but the sheer size of companies like Apple, Microsofti Nvidia means that even a nearly $1 trillion market cap company like Berkshire doesn’t even get 2% of the fund. This shows how much the S&P 500 has become a top weight, as well as how much its value has increased over time.

Investing in ETFs can be an excellent and practical way to put new capital to work in the stock market. By identifying ETFs that hold stocks you like, you can achieve diversification while investing in companies you understand and believe in.

You can also consider a hybrid approach by buying Berkshire Hathaway stock and an ETF. That way, you can get outsized exposure to Berkshire while rounding it out with dozens, if not hundreds, of other top companies.

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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the aforementioned stocks. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Chevron, JPMorgan Chase, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Value ETF, Vanguard S&P 500 ETF and Visa. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has one disclosure policy.

Want to buy shares in Warren Buffett’s Investment Empire before 2024 ends? Consider these 5 great Vanguard ETFs that own Berkshire Hathaway stock. was originally published by The Motley Fool

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