Here is a very lengthy post on the topic of Berkshire Hathaway's ownership of McDonald's stock, with a step-by-step guide and engaging content.
Step 1: Let's Settle This Once and For All - The McDonald's Breakfast Debate!
Hey, have you heard the story about Warren Buffett and his McDonald's breakfast? It's a classic! The legendary investor, known for his no-nonsense approach to finance, is famous for his daily stop at McDonald's. But here's the twist: he allegedly lets the performance of the stock market decide his order. If the market is up, he might splurge on a bacon, egg, and cheese biscuit. If it's down, he might opt for a more modest two sausage patties.
It's a fantastic anecdote that perfectly captures Buffett's frugal and pragmatic nature. But it also raises a question that's been on the minds of many investors and financial enthusiasts: does this love for McDonald's translate into a significant investment in the company's stock?
Let's dive in and find out the truth!
Step 2: Unveiling the Berkshire Hathaway Portfolio
To understand Berkshire Hathaway's stake in McDonald's, we need to look at the big picture: the company's investment portfolio. Warren Buffett and his team, including his co-managers Ted Weschler and Todd Combs, meticulously manage a massive portfolio of publicly traded stocks. This portfolio is disclosed every quarter in a filing with the U.S. Securities and Exchange Commission (SEC) called a 13F filing.
Sub-heading: The Warren Buffett Way
Warren Buffett is famous for his value investing philosophy, which focuses on buying shares of excellent businesses at reasonable prices. He prefers to hold these stocks for the long term, often for decades, letting the power of compounding work its magic. His portfolio is highly concentrated, with a few key holdings making up a significant portion of the total value.
Berkshire Hathaway's portfolio is a fascinating list to study. As of the most recent filings (Q1 2025), the portfolio holds a total value of over $258 billion. The top holdings are dominated by some of the most recognizable and enduring American brands.
Apple (AAPL): A massive holding, representing a significant portion of the portfolio.
American Express (AXP): A long-standing favorite of Buffett's.
Coca-Cola (KO): Another classic Buffett holding, and a testament to his love for the beverage.
Bank of America (BAC): A major financial institution that Berkshire has a large stake in.
Chevron (CVX) and Occidental Petroleum (OXY): Major energy plays.
Step 3: The Big Reveal - Does Berkshire Own McDonald's Stock?
Now, for the question you've been waiting for: how much McDonald's stock does Berkshire Hathaway own?
Here's the definitive answer: As of the latest publicly available 13F filings, Berkshire Hathaway does not directly own McDonald's (MCD) stock in its primary portfolio.
Wait, what?
Yes, you read that correctly. While Warren Buffett's personal affinity for McDonald's is well-documented, the stock is not a direct holding in the Berkshire Hathaway equity portfolio.
Sub-heading: A Look Back in Time
This doesn't mean Buffett has never invested in McDonald's. In fact, he has a history with the company. There are reports and even a famous interview where Buffett discusses how he regretted selling his McDonald's stock a while back, describing it as a mistake. He understood the unique business model of McDonald's, particularly its real estate holdings, and saw its long-term potential. However, for reasons that are not always made public, he decided to sell his stake.
This is a crucial point. Buffett's past actions and personal preferences don't always align with the current holdings of the Berkshire Hathaway portfolio. The portfolio is a dynamic entity, and stocks are bought, sold, and trimmed over time based on various factors, including valuation, business performance, and capital allocation needs.
Sub-heading: What About Subsidiaries?
This is where it gets interesting and a bit more nuanced. While the main Berkshire Hathaway portfolio doesn't hold McDonald's, a financial news source suggests that a position is held in New England Asset Management (NEAM), a subsidiary of Berkshire Hathaway. This is an important distinction, as the holdings of a subsidiary are not always directly managed by Buffett himself and may represent a different investment strategy.
So, while Warren Buffett might be eating a McDonald's breakfast every day, his company's main investment portfolio is not directly invested in the golden arches.
Step 4: Decoding the "Why"
So, why would a company like Berkshire Hathaway, which loves durable brands and cash flow, not own a stake in McDonald's?
Here are some potential reasons, based on Buffett's well-known investment principles:
Valuation: Even for a great company, a stock can become too expensive. The price-to-earnings (P/E) ratio, for instance, might be too high for Buffett's liking.
Better Opportunities: With a vast universe of investment options, Berkshire Hathaway may have simply found other companies that offered a better risk-reward profile at the time of their investment.
Portfolio Concentration: As mentioned earlier, Buffett believes in a concentrated portfolio. This means he has to make tough choices about which companies to own. He can't own everything, even if he likes the business.
Business Moat: While McDonald's has a strong brand and a massive global presence (a "moat"), Buffett may have found the competitive advantage of other companies, like Coca-Cola or Apple, to be more compelling.
This is not to say that McDonald's is a bad investment. On the contrary, it has been a fantastic long-term performer. It simply means that it doesn't currently fit Berkshire Hathaway's specific investment criteria for a direct, large-scale holding.
10 Related FAQ Questions
How to find Berkshire Hathaway's latest stock holdings?
You can find Berkshire Hathaway's latest stock holdings by checking their quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings are publicly available on the SEC's EDGAR database or on financial data websites.
How to invest in McDonald's stock?
To invest in McDonald's stock, you need to open a brokerage account with a registered brokerage firm. Once your account is funded, you can search for the stock using its ticker symbol, MCD, and place a buy order for the number of shares you wish to purchase.
How to buy Berkshire Hathaway stock?
You can buy Berkshire Hathaway stock through a brokerage account. Berkshire Hathaway has two classes of stock: Class A (BRK.A) and Class B (BRK.B). Class A shares are very expensive, but Class B shares are much more affordable and have been created to allow smaller investors to own a piece of the company.
How to analyze a company's stock portfolio?
To analyze a company's stock portfolio, you should look at their 13F filings. You can analyze the top holdings, the sector allocation, recent buys and sells, and the concentration of the portfolio. This gives you insight into the company's investment strategy.
How to read a 13F filing?
A 13F filing is a quarterly report filed by institutional investment managers with over $100 million in assets under management. It lists their equity holdings. Key sections to look at include the list of securities, the number of shares held, and the value of the holding.
How to understand Warren Buffett's investment philosophy?
Warren Buffett's investment philosophy, known as value investing, focuses on buying high-quality businesses with a durable competitive advantage ("moat") at a fair price. He emphasizes long-term holding, a concentrated portfolio, and a deep understanding of the businesses he invests in.
How to calculate a company's market capitalization?
A company's market capitalization is calculated by multiplying the number of outstanding shares by the current stock price. It represents the total market value of a company's stock.
How to interpret a stock's P/E ratio?
The Price-to-Earnings (P/E) ratio is a valuation metric that compares a company's share price to its earnings per share. A higher P/E ratio may indicate that investors are willing to pay more for each dollar of earnings, suggesting high growth expectations.
How to identify a company's competitive advantage?
A company's competitive advantage, or "moat," can be a strong brand, a patent, a network effect, a cost advantage, or a high switching cost for customers. These factors protect the company's profitability from competition.
How to track Warren Buffett's daily McDonald's order?
While the story about his breakfast is a fun anecdote, it's a bit of an exaggeration. You can't literally track his daily order, but the story is a great illustration of his frugal personality and his close, personal interest in the stock market's daily movements.
