So everyone’s obsessing over whether Buffett’s dumping Apple or if Amazon’s still his golden child. Meanwhile, there’s this little aerospace company called HEICO that’s been quietly crushing it in the Oracle of Omaha’s portfolio – and honestly, most people have never even heard of it.
Here’s the thing: while we’re all arguing about whether Apple at $265 is still a buy (spoiler: Warren’s been selling), HEICO has been the actual MVP of Berkshire’s portfolio over the past decade. We’re talking 28% annual returns. That’s not a typo.
Let me put this in perspective. Apple? Great run, 25% annually over 10 years. Amazon? Solid 22% since Buffett finally stopped calling himself an “idiot” for missing it and bought in 2019. But HEICO? This aerospace parts maker has been the quiet overachiever sitting in the back of the class, acing every test while everyone else fights over the popular kids.
Now, before you get too excited and YOLO your entire portfolio into aerospace parts (please don’t), let’s talk reality. Buffett only bought HEICO in Q2 2024 – so yeah, he was late to this party too. The man who can spot value from space somehow missed a company that makes actual space-adjacent stuff for years.
What does HEICO actually do? They make the unglamorous but essential bits that keep planes in the air – components for commercial aircraft, defense systems, and all sorts of high-tech gadgetry that goes into everything from passenger jets to military targeting systems. Think of them as the company that makes the stuff that makes other stuff work. Not sexy, but absolutely critical.
The numbers are pretty wild: 30% up in 2025, 34% gain in 2024. It’s trading at 69 times earnings, which sounds expensive until you remember this is a company that’s been growing like it’s powered by rocket fuel (which, given their business, might be literally true).
Wall Street analysts have a median price target of $360, suggesting there’s still 16% upside from current levels. Of course, Wall Street analysts also thought Theranos was revolutionary, so take that with a grain of salt.
The real question is whether HEICO can keep up this pace. Growing at 28% annually is impressive, but it’s also the kind of thing that makes you wonder if gravity still applies. The aerospace industry is cyclical, defense spending can be unpredictable, and at some point, the laws of financial physics tend to reassert themselves.
But here’s what’s interesting: Buffett doesn’t just buy companies; he buys businesses he understands and believes in long-term. The fact that he’s been adding to his HEICO position suggests he sees something sustainable in their competitive moat.
So while everyone’s debating whether to buy the dip on Apple or if Amazon’s cloud business justifies its valuation, maybe it’s worth paying attention to the aerospace company that’s been quietly outperforming both. Just don’t blame me if you end up becoming the person at parties who gets way too excited talking about aircraft component manufacturing.
After all, in a world where everyone’s chasing the next big thing, sometimes the best investments are hiding in plain sight – making the boring stuff that keeps the world running.