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KKR & Co. Inc. (KKR)
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Berkshire Hathaway Inc. (BRK.B)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Hi
Is KKR like a mini BRK.B?
We presently own BRK.B at about 5,5% of our holdings.
Would you suggest adding to BRK.B or start a small position in KKR.
I understand you can not mention position sizes, but also respect your suggestions.
Thank you
Mike
.
Is KKR like a mini BRK.B?
We presently own BRK.B at about 5,5% of our holdings.
Would you suggest adding to BRK.B or start a small position in KKR.
I understand you can not mention position sizes, but also respect your suggestions.
Thank you
Mike
.
5i Research Answer:
KKR is a bit more similar to BN than BRK.B. As an asset manager, KKR invests funds mainly from its clients along with some of its own capital and from its insurance subsidiaries’ float and its time horizon for the exit is usually around 5 years, while BRK.B invests mainly its own capital and insurance float by owning the assets outright or through public equities, and does less third-party-asset-management. We like both names, and we would be comfortable owning both. We think both are trading at an attractive valuation.
As position sizing is a personal choice, we don’t comment on the absolute percentage of the position, but we would be comfortable allocating to BRK.B and KKR equally in the portfolio.