Berkshire shakes up its portfolio

15 August 2008

Berkshire Hathaway, the financial group run by legendary investor Warren Buffett, has made some changes to its investment strategy.

The body has now taken a stake in Texas-based NRG Energy as energy prices continue to rise, Bloomberg reports.

Berkshire has also reduced its holding in Anheuser-Busch, the maker of Budweiser beer, following the firm's announcement last month that it could be bought out for $52 billion.

Speaking to the news agency, Frank Betz at Carret Zane Capital Management commented: "The changes in the investment vehicle's portfolio were detailed in a regulatory filing submitted by Berkshire for the second quarter.

"It would be logical for him to increase his utility and energy holdings and NRG would fit in nicely."

I would suspect he's looking at this move that we've seen in energy and he's thinking assets are worth a whole lot more than what the market is currently valuing them at,'' added Calyon analyst Gordon Howald.

Mr Buffett, 77, is thought to be the world's richest man.

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