Warren Buffett Didn't Buy Many Stocks in Q3. Only the Smartest Investors Know This One.

Group 1 - Heico is a key supplier in various industries, generating approximately $3.8 billion in annual sales, with a business split of roughly 2-to-1 between flight support and electronic technologies [5][6] - The company has significantly outperformed the S&P 500 index over its lifetime, primarily due to its strategy of serial acquisitions, having acquired nearly three dozen companies since 1999 [6][8] - Heico's strong management and efficient growth have led to a higher return on equity (ROE) over time, indicating a well-run company that effectively utilizes its financial resources [8][9] Group 2 - Berkshire Hathaway, led by Warren Buffett, has increased its stake in Heico, although this stake represents only about 0.1% of its portfolio, suggesting a cautious approach to investment in this stock [10][12] - Heico's stock currently trades at a forward P/E ratio of 65, with analysts estimating nearly 20% annual earnings growth over the next three to five years, resulting in a PEG ratio of 3.3, which is considered steep [11] - The recent purchase by Berkshire indicates that while Heico may have potential, it is currently viewed as expensive, and investors are advised to keep cash available for potential market declines that could present better buying opportunities [10][12]