Warren Buffett Places a Bet on Billboards: Berkshire Adds Lamar Advertising to Portfolio
When Warren Buffett makes a move, investors pay attention. In his latest round of stock picks, one name stood out. It was not a tech giant or a flashy startup, but Lamar Advertising, the century-old billboard company you have probably driven past many times.
Berkshire Hathaway recently bought about 1.17 million shares, a stake worth around $142 million. In the grand scale of Buffett’s portfolio, that is a small purchase. Still, it was enough to send Lamar’s stock up nearly 5 percent and spark questions across Wall Street.
Why Billboards?
Lamar is not in the business of apps or artificial intelligence. It is in the business of big roadside signs. The company owns more than 360,000 billboards, transit displays, and airport signs across the United States and Canada.
For advertisers, outdoor space offers something digital ads cannot. A billboard cannot be swiped away, muted, or blocked. That kind of permanence is exactly what Buffett has always valued in a business.
Lamar also pays steady dividends, which means Berkshire collects a reliable cash return while holding the stock.
A Small Bet With a Bigger Meaning
In dollar terms, Lamar hardly registers compared to Berkshire’s massive holdings in Apple, Bank of America, or Chevron. Even so, the decision signals that Buffett, or more likely his investment deputies Todd Combs and Ted Weschler, still see strong potential in businesses built on physical assets.
It also reflects Buffett’s long-standing preference for companies that are easy to understand, have strong competitive positions, and generate steady cash flow. Billboards may not sound exciting, but they check all of those boxes.
What Else Berkshire Bought and Sold
Lamar was only part of the story. Berkshire also added big new stakes in UnitedHealth, Nucor, and Lennar. At the same time, the firm trimmed its positions in Apple and Bank of America and sold its entire stake in T-Mobile.
This shows Berkshire is gradually shifting its focus toward steady, real-world businesses while trimming back some of its giant tech bets.
The Takeaway
The Lamar investment will not move the needle for Berkshire on its own. What it does show is Buffett’s consistent approach. He looks for companies with staying power, avoids chasing hype, and relies on businesses that generate reliable returns year after year.
Sometimes the smartest bet is not in Silicon Valley. It is on a billboard by the side of the highway.
Photo Credit:
Aaron Friedman, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons
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