Benzinga - Many investors have turned to Berkshire Hathaway (NYSE:BRKa) Inc (NYSE: BRK-A)(NYSE: BRK-B) over the years as a long term investment option. Among those who have been believers in Warren Buffett over the last 25 years is a celebrity who shares his last name.
What Happened: Musician and businessman Jimmy Buffett shared Saturday (April 30) that he has owned shares of Berkshire Hathaway for over 25 years.
“Never sold anything,” Buffett told CNBC’s Becky Quick when asked if he has been a holder all these years.
The musician said he has been friends with Berkshire Chairman Warren Buffett for years and came to know him when tracing his family lineage.
Jimmy Buffett told Quick that he thinks the two could be related, tracing back “somewhere in a French village.” Although, a 23andMe DNA test showed that the two Buffetts are not related.
Musician Buffett also designed a pontoon boat made by Forest River, a subsidiary of Berkshire. The pontoon boat was shown off and made available for sale for the first time at the shareholder event.
Warren Buffett referred to the musician as “Cousin” Jimmy Buffett in a February shareholder letter announcing the new boat.
“Your bargain-hunting chairman will be buying a boat for his family’s use,” Warren Buffett said at the time.
Jimmy Buffett also shared a bit of his success story on building out a business brand around the “Margaritaville song.”
Buffett confirmed the song was written in less than seven minutes.
“Played on stage for people who had never heard it, got into the setlist and became a favorite of fans,” Buffett said.
Rather than the song being a big radio hit first, Buffett said the classic tune was built out of being good performers.
Related Link: No Wasting Away Here: Jimmy Buffett's Margaritaville Business Empire In Post-Pandemic Expansion Mode
Why It’s Important: Berkshire Hathaway doesn’t pay a dividend, instead choosing to invest in companies through buyouts or large equity stakes. Buffett and Berkshire Hathaway favor a long term approach, betting on companies that offer value and predictable financials.
The companies owned by Berkshire Hathaway include Geico, Fruit of the Loom, Duracell and Dairy Queen.
Berkshire Hathaway also owns large stakes in Apple Inc (NASDAQ: NASDAQ:AAPL), Bank of America Corp (NYSE: NYSE:BAC), Coca-Cola Inc (NYSE: NYSE:KO) and American Express Inc (NYSE: NYSE:AXP).
From 1956 to 2021, Berkshire Hathaway has produced an average annual return of 20.1% versus 10.3% for the S&P 500.
Originally published April 30, 2022.
Photo: Created with images from sjfst17 and Fortune Live Media on flickr
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