Picture supply: The Motley Idiot
Warren Buffett’s each transfer is analysed beneath a microscope — and with good purpose. Because the driving power behind Berkshire Hathaway, he’s created some of the profitable funding data in historical past.
However what does his newest buying and selling exercise reveal? And are there classes right here for UK traders?
Whereas Buffett doesn’t sometimes spend money on UK-listed firms, many shares on the FTSE 100 have comparable traits to these in his portfolio — world attain, pricing energy, and constant money era.
Specifically, two latest Berkshire Holdings — Johnson & Johnson and Constellation Manufacturers — remind me of UK equivalents AstraZeneca and Unilever (LSE: ULVR).
Right here’s why they could be price contemplating for UK traders.
A defensive pharma decide
Buffett trimmed his place in healthcare large J&J a number of years in the past however the logic behind proudly owning large-cap pharma stays. Corporations like these profit from extensive moats, excessive limitations to entry, and merchandise individuals depend on whatever the financial cycle.
In that sense, AstraZeneca matches the invoice. The agency has constructed a various drug portfolio and is investing in oncology, immunology, and uncommon illnesses remedies. It additionally boasts spectacular financials: income grew 12% within the second quarter of 2025 and earnings per share climbed 27%.
Though the dividend yield is a modest 2.2%, the payout ratio is well-covered by earnings and has room to develop. The worth-to-earnings (P/E) ratio of 19.7 might look excessive at first look, however is arguably justified by the corporate’s robust pipeline of long-term development potential.
One threat? Drug improvement failures and regulatory hurdles can hit income and sentiment exhausting — however for traders in search of Buffett-style defensiveness, AstraZeneca is one to contemplate.
At all times in demand
Buffett has been rising Berkshire’s place in Constellation Manufacturers lately. His love for well-known branded shopper merchandise stems from their pricing energy, consistency, and model loyalty — traits additionally present in UK shopper items large Unilever.
With family names like Dove, Hellmann’s, and Persil in its portfolio, Unilever enjoys broad world publicity. In Q2 2025, turnover rose 3.3% 12 months on 12 months, pushed by a return to quantity development. Regardless of inflationary strain, it maintained working margins above 16% — spectacular for an organization on this area.
The three.4 % dividend yield, backed by a payout ratio of round 75%, presents stable passive earnings potential. And whereas the share value has struggled lately, a ahead P/E ratio of 17 suggests the worst might already be priced in.
The present aggressive panorama is difficult, although, and poses dangers to Unilever’s backside line. Altering shopper tastes and competitors from personal labels might proceed to weigh on earnings. Over an prolonged interval, this might threaten a dividend minimize if debt piles up.
Nonetheless, when wanting on the larger image, I imagine the size and model energy of the corporate are sufficient to maintain it resilient.
Sustainable high quality
Buffett’s funding ideas — purchase high quality, maintain lengthy, ignore the noise – proceed to resonate.
Whereas Berkshire Hathaway will not be snapping up FTSE 100 shares, companies like AstraZeneca and Unilever share most of the identical strengths as his US holdings.
For affected person UK traders, following his philosophy would possibly simply repay.
