Picture supply: The Motley Idiot
Warren Buffett’s each transfer is analysed beneath a microscope — and with good motive. Because the driving power behind Berkshire Hathaway, he’s created one of the profitable funding information 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 related traits to these in his portfolio — world attain, pricing energy, and constant money technology.
Specifically, two current 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 just a few years in the past however the logic behind proudly owning large-cap pharma stays. Corporations like these profit from large moats, excessive obstacles to entry, and merchandise individuals depend on whatever the financial cycle.
In that sense, AstraZeneca suits 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 onerous — 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 not too long ago. 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% yr on yr, pushed by a return to quantity development. Regardless of inflationary stress, it maintained working margins above 16% — spectacular for an organization on this house.
The three.4 % dividend yield, backed by a payout ratio of round 75%, provides strong passive revenue 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 may proceed to weigh on earnings. Over an prolonged interval, this might threaten a dividend lower if debt piles up.
Nonetheless, when trying on the larger image, I consider the dimensions and model energy of the corporate are sufficient to maintain it resilient.
Sustainable high quality
Buffett’s funding rules — purchase high quality, maintain lengthy, ignore the noise – proceed to resonate.
Whereas Berkshire Hathaway is probably not snapping up FTSE 100 shares, companies like AstraZeneca and Unilever share most of the similar strengths as his US holdings.
For affected person UK traders, following his philosophy may simply repay.
