Warren Buffett bet $279 billion on these 10 stocks

There are about four dozen actions in Berkshire Hathawayit is (BRK.A -0.35%) (BRK.B -0.44%) closely watched stock portfolio, but it is rather heavy. In fact, Berkshire’s top 10 stocks represent 86% of the total market value of the portfolio.

Moreover, although CEO Warren Buffett was not responsible for all selection of securities in the portfolio, he personally selected most of the most important securities in the portfolio. Here’s an updated look at Berkshire’s top 10 stock holdings, the current market values ​​of each, and who could be favorites for the Oracle of Omaha in the current economic climate.

Apple ($132.0 billion market value)

Berkshire Hathaway first purchased shares of Apple (AAPL 0.68%) in 2016 and quickly built up a fairly large holding. With an average cost of around $38 per share, Berkshire is sitting on a 270% gain even after the recent downturn. Buffett likes the rigidity of Apple’s business, created by its ecosystem of products and services, as well as its extremely loyal customer base.

Bank of America ($32.5 billion)

Bank of America (BAC -0.32%) first became part of Berkshire’s portfolio when Buffett invested $5 billion in preferred stocks in the wake of the financial crisis. The initial investment has since been converted into common stock at a huge profit and has been added several times. Bank of America has excellent asset quality, excellent leadership and consistently trades at one of the lowest valuations of the major banks.

Coca-Cola ($25.2 billion)

Coca Cola (KO -0.43%) has been one of Buffett’s biggest long-term earners since Buffett first invested in the beverage giant in 1988, paying $1 billion for the stake. Not only has the investment grown to 25 times its original value, Berkshire’s 400 Coca-Cola shares are now earning Berkshire $704 million in dividend income. annually.

Chevron ($22.5 billion)

One of Berkshire’s most recent investments on this list, the Chevron (CLC -1.83%) Participation was launched at the end of 2020, but was added much earlier this year. Chevron hasn’t been a huge winner yet (Berkshire is roughly even on its investment), but if energy prices stay high, this company could be a slot machine.

American Express ($21.3 billion)

Berkshire bought an 11% stake in American Express (AXP -1.00%) in the late 1990s, but thanks to stock buybacks by the financial giant, Buffett and company now own more than 20% of American Express. Buffett paid around $1.3 billion for Amex stock, making it another hugely successful investment.

Kraft Heinz ($12.6 billion)

Kraft-Heinz (KHC 0.49%) is one of the few investments in Berkshire’s portfolio that has not been successful. The stake was the result of the 2015 merger between Heinz and Kraft Foods, and in 2019 Buffett admitted he was wrong and “overpaid” for Berkshire stock.

Occidental Petroleum ($10.4 billion)

Berkshire Hathaway has made a preferred stock investment in western oil (OXY -3.61%) several years ago, but Buffett’s attention has recently turned to common stocks. In just over six months, Berkshire has amassed an 18.7% stake in the oil company.

BYD Co. ($8.8 billion)

Buffett’s biggest international investment is BYD (BYDD.F -11.31%), one of the leading electric vehicle manufacturers in China. Berkshire paid just $232 million for 8.25% of the company in 2008, making it one of Buffett’s most successful investments, although Buffett may feel like he left some room. money on the table; he wanted to buy 25% of BYD, but his managers wouldn’t sell him that much.

Moody’s ($7.0 billion)

One of the best bond rating agencies in the world, Moody’s (AGC -2.89%) is part of a quasi-duopoly in a very high barrier industry. Berkshire’s stake in Moody’s stems from its spin-off from Dun & Bradstreet, and although Berkshire has reduced its stake a bit over the years, it still owns more than 13% of the company.

American Bancorp ($6.7 billion)

One of America’s most profitable and strong major banks, American bank (USB -0.32%) has been in Berkshire’s portfolio since 2006, and the stake has been increased several times since.

What are Buffett’s favorites right now?

Apple is a clear favorite due to the size of Berkshire’s investment, and Buffett has even commented that he’d like to own the whole company if he could. But Berkshire hasn’t bolstered its Apple position for some time.

Buffett’s most recent big buys have come in the energy sector, as the Chevron and Occidental positions are rather new. In fact, Berkshire has added to Occidental Petroleum’s investment several times in recent months and now owns nearly 19% of the company, suggesting that Buffett may even try to buy the entire company. ‘company. Bank of America’s stake has also grown in recent years, which is particularly notable as Buffett sold large stakes in several other bank stocks while adding Bank of America shares.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool Company. Matthew Frankel, CFP® holds positions at American Express, Bank of America and Berkshire Hathaway (B shares). The Motley Fool holds and recommends Apple, BYD, Berkshire Hathaway (B shares) and Moody’s. The Motley Fool recommends Kraft Heinz and recommends the following options: January 2023 long calls at $200 on Berkshire Hathaway (B shares), January 2024 long calls at $47.50 on Coca-Cola, $120 March long calls 2023 on Apple, short calls of $200 in January 2023 on Berkshire Hathaway (B shares), short calls of $265 in January 2023 on Berkshire Hathaway (B shares) and short calls of $130 in March 2023 on Apple. The Motley Fool has a disclosure policy.

Comments are closed.