Berkshire Asset Management: Investment Philosophy & Strategy
Berkshire Asset Management: A Deep Dive into a Timeless Investment Philosophy
Berkshire Asset Management, a boutique investment firm with a rich history, is one such entity. This post will provide an in-depth look into the firm, its history, services, and unique investment strategies, offering valuable insights for individual and institutional investors alike.
The Enduring Legacy of Berkshire Asset Management: A Company History
The story of Berkshire Asset Management is one of resilience, evolution, and a steadfast commitment to its founding principles. The firm’s journey began in 1986 with the formation of Berkshire Asset Management, Inc., a registered investment advisor with the Securities and Exchange Commission (SEC). From its inception, the firm focused on U.S. equity management for high-net-worth individuals and institutions.
The 1990s saw the firm flourish, building a strong reputation as a boutique investment firm that prioritized a well-crafted investment philosophy and superior client service. This success attracted the attention of larger players in the financial industry, and in 1999, the company was sold to Legg Mason.
However, the spirit of independence and the desire for full control over its strategic direction led the senior leadership to repurchase the firm in 2007. This pivotal moment marked the birth of Berkshire Asset Management, LLC, the firm as we know it today. This move ensured that the firm remained 100% employee-owned and operated, a crucial factor in maintaining its unique culture and investment approach.
A significant development in the firm’s recent history is the strategic, non-controlling investment by iM Global Partner, a leading global asset management network, in December 2022. This partnership has provided Berkshire Asset Management with an extensive global distribution network and has solidified the firm’s longevity and structure, ultimately enhancing the services it can offer its clients.
This rich history has fostered a cohesive and experienced investment team, with many members having worked together since the mid-1990s. The firm boasts extremely low professional turnover, a testament to its strong culture and the team’s shared commitment to the firm’s investment philosophy.
A Client-Centric Approach: The Services of Berkshire Asset Management
Berkshire Asset Management offers a range of services tailored to meet the diverse needs of its clients. The firm caters to a broad clientele, including individuals, high-net-worth individuals, pooled investment vehicles, pension and profit-sharing plans, charitable organizations, insurance companies, and other corporations.
The core of their offerings revolves around portfolio management. They provide:
Portfolio Management for Individuals & Small Businesses: Tailored investment solutions for individuals and small businesses, focusing on their unique financial goals and risk tolerance.
Portfolio Management for Businesses or Institutional Clients: Comprehensive portfolio management services for larger entities, including corporations and institutions.
Portfolio Management of Pooled Investment Vehicles: Management of collective investment schemes, where funds from multiple investors are pooled together.
Pension Consulting Services: Expert advice and management for pension plans, helping businesses meet their fiduciary responsibilities.
Selection of Other Advisors: Assistance in selecting other financial advisors, ensuring clients have access to a broad range of expertise.
The firm’s headquarters is in Wilkes-Barre, Pennsylvania, and they are committed to providing personalized service and building long-standing relationships with their clients. Their fee structures are flexible and can include a percentage of assets under management, fixed fees, or performance-based fees, depending on the service provided.
The Berkshire Way: Unpacking the Firm's Investment Strategies
At the heart of Berkshire Asset Management’s success is its disciplined and forward-looking investment philosophy. The firm’s strategies are not based on chasing fleeting market trends but on a deep understanding of businesses and their long-term potential.
The Berkshire Dividend Growth Strategy: A Flagship Approach
The firm’s flagship equity strategy is the Berkshire Dividend Growth Strategy. Launched in 2009, this strategy was born out of the perceived multi-decade opportunity created by the financial crisis, particularly in high-quality dividend-paying stocks.
The core of this strategy is to invest in a diversified portfolio of high-quality businesses that have a consistent track record of increasing their dividends. The belief is that such companies can lead to attractive long-term investment results. What sets this strategy apart is its “Forward Looking” approach. Instead of simply screening for past dividend growth, the team at Berkshire focuses on identifying “tomorrow’s dividend growers” before they are fully recognized by the market. This involves a rigorous, bottom-up selection process and a deep dive into the fundamentals of each company.
Core Equity Strategy: The Entrepreneurial Mindset
The Berkshire Core Equity Strategy takes the mindset of an entrepreneur looking to purchase entire companies for the long term. This strategy is characterized by:
Reasonable Diversification: The strategy holds 25-35 equities, ensuring a balance between risk and potential returns.
Large-Capitalization Bias: The focus is on large, established companies with a strong market presence.
Discipline During Under-performance: The team remains disciplined and committed to their long-term vision, even during periods of market volatility.
Risk Management: A robust risk management framework is in place to protect clients’ capital.
The S&P 500 is the benchmark against which the performance of this strategy is measured.
Fixed Income Strategy: A Focus on Stability and Consistency
The Berkshire Fixed Income Strategy is designed for investors seeking consistent, steady cash flow with a primary focus on the preservation of capital. The key features of this strategy include:
High-Quality and Liquid Bond Portfolio: The portfolio consists of high-quality, liquid bonds to ensure stability and easy access to funds.
Opportunistic Approach: The team is opportunistic regarding the term structure and level of interest rates, seeking to capitalize on favorable market conditions.
Low Embedded Transaction Costs: The strategy is managed to keep transaction costs low, maximizing returns for investors.
Asset Allocation Approach: A Consultative and Customized Framework
The Berkshire Asset Allocation Approach offers a broader diversification among various asset classes. This approach is highly consultative, with the team working closely with clients to understand their unique needs and create a customized asset allocation plan. The platform is low-cost and open-architecture, providing clients with access to a wide range of investment options.
A Look at the Numbers: Assets Under Management and Firm Size
As a private company, Berkshire Asset Management is not required to disclose its financial information publicly. However, based on available data, the firm has a significant amount of assets under its care.
Assets Under Management (AUM): According to a Form ADV from March 20, 2025, Berkshire Asset Management has discretionary assets under management (AUM) of $2,361,215,134. A press release from December 2022, announcing the partnership with iM Global Partner, mentioned that the firm had US$3.96 billion in assets under advisement as of the end of October 2022. The difference in these figures could be due to the different reporting dates and the distinction between “assets under management” and “assets under advisement.”
Annual Revenue: The annual revenue for Berkshire Asset Management is not publicly available. The revenue figures often associated with “Berkshire” in financial news typically refer to Berkshire Hathaway, the multinational conglomerate holding company, which is a separate entity.
Number of Employees: Berkshire Asset Management is a boutique firm with a close-knit team. According to PitchBook, the firm has a total of 18 employees. This small size allows for a highly collaborative and client-focused environment.
Strategic Alliances: The Power of Partnerships
Berkshire Asset Management has a key strategic partnership that has significantly enhanced its capabilities and reach.
The iM Global Partner Alliance
In a landmark move, iM Global Partner, a leading global asset management network, made a strategic, non-controlling investment in Berkshire Asset Management in December 2022. This partnership has been a game-changer for the firm, providing it with access to an extensive global distribution network.
For Berkshire, this partnership solidifies its longevity, consistency, and structure, allowing it to enhance its offerings for both existing and future clients. For iM Global Partner, the addition of Berkshire Asset Management to its network brings a unique, long-term, value-oriented approach that complements its existing ethos.
This partnership is a testament to Berkshire’s strong reputation and its exceptional investment process. It is an incredible vote of confidence in the team and its future.
A Commitment to Excellence: Awards and Recognition
While specific awards and recognitions for Berkshire Asset Management are not widely publicized, the firm’s long and successful history, its strong client relationships, and its partnership with a leading global asset management network speak volumes about its commitment to excellence.
It’s important to note that many of the awards and recognitions found online for “Berkshire” are often for other entities like Berkshire Partners or Berkshire Residential Investments. However, the true measure of Berkshire Asset Management’s success lies in the long-term value it has created for its clients and the trust it has earned in the investment community.
A Timeless Philosophy for a Modern World
In a world of fast-paced financial markets and ever-changing investment trends, Berkshire Asset Management stands as a beacon of stability and long-term vision. The firm’s commitment to its core investment philosophy, its client-centric approach, and its experienced and dedicated team have been the cornerstones of its success.
For investors seeking a partner who will navigate the complexities of the market with a steady hand and a clear vision, Berkshire Asset Management offers a compelling proposition. Their story is a powerful reminder that in the world of investing, a timeless philosophy, when executed with discipline and integrity, can lead to enduring success.
Berkshire Asset Management Leadership & Teams
Headquarters: 46 Public Square, Suite 700, Wilkes-Barre, PA 18701, USA
Phone: 570-825-2600
Number of employees: 51-200
Website: www.berkshireasset.com