Here’s What’s in Warren Buffett’s ‘Secret Portfolio’ — and What Investors Can Learn From It
Written by
Sarah Li Cain
Edited by
Zuri Anderson
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When most people think of Warren Buffet’s portfolio, they probably think of household names like Apple or Coca-Cola. However, Berkshire Hathaway has a “secret portfolio,” where it indirectly owns assets managed by New England Asset Management (NEAM) in the billions.
NEAM’s latest filing with the SEC was August 2025 and it showed a portfolio value of around $647 billion. Buffet’s “secret portfolio” may have as much as $5.9 billion in holdings.
NEAM is an asset management arm for insurance businesses that Berkshire Hathaway acquired years ago. NEAM’s stock holdings are smaller and more income oriented, compared to Berkshire Hathaway’s main filings.
The asset management firm may not get as much attention in the headlines, but the holdings in its portfolio can show you how Buffet’s team balances and diversifies their portfolio.
Some Holdings in the ‘Secret Portfolio’
NEAM’s portfolio generally invests in business development companies, or BDCs. The firm’s SEC filings show investments in stocks like Ares Capital (ARCC), BlackRock TCP Capital (TCPC) and Golub Capital BDC.
What is a BDC? These are publicly-traded investment funds that lend money to small to mid-sized businesses. They’re usually the types that can’t or choose not to get funding from more traditional sources like banks. BDCs tend to pass the income it earns from the interest it receives as dividends to its shareholders.
NASDAQ shows that ARCC has a current yield of 9.66%. TCPC offers a regular quarterly dividend to its investors. GBDC, on the other hand, is currently yielding 11.1%.
NEAM does more than try to chase double-digit yields in its holdings. It also has a stake on more “steady” investments, such as:
- Realty Income Corp (O): This is a real estate invest trust (REIT) that yields about 5.4% as of June 2025
- Kinder Morgan (KMI): A major US pipeline operator, Kinder Morgan has a yield close to 4.28
- Vanguard High Dividend Yield ETF (VYM): Yes, it’s an exchange-traded fund. This one happens to group together dozens of dividend-paying stocks.
What Can I Learn From These Holdings?
It’s clear that even the most famous investor has different holdings for various goals. The main components in the “secret portfolio” focus on long-term growth and others on more steady cash flow.
The BDCs, for example, offer higher rewards but it also comes with more risks. Making the loans they do means if the economy slows down, some borrowers could fall behind on their payments. As such, dividends could tank.
On the other hand the more reliable ones like Kinder Morgan, Realty Income and VYM helps to balance out the more riskier investments. Sure, high-yield stocks offer more income opportunities, but that should only be one part of your plan. Having diversification like Buffett means that you’ll more likely see your portfolio weather the storms over time.
Think about it: If Buffet’s “secret portfolio” holds Vanguard ETFs and he’s one of the richest men in the world, why wouldn’t you try to follow in his footsteps?
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