When it comes to investing in stocks, few names carry as much weight as Warren Buffett. The legendary investor’s company, Berkshire Hathaway, had a staggering $862 billion market cap as of December 31, 2023, with a cash pile of $189 billion as of March 31, 2024. So, let’s find the Warren Buffett Stocks.
Buffett’s stock picks and Berkshire’s portfolio are closely watched by investors worldwide, offering insights into his investing strategy for sectors like banking, technology, consumer goods, and energy. This article examines Berkshire’s top holdings, recent buying and selling activity, Buffett’s time-tested principles, and the stocks he’s betting on in today’s market.
Berkshire Hathaway’s Top Holdings
Key Holdings
Berkshire Hathaway’s largest holdings include Apple Inc. (40.1% of portfolio, valued at $144.8 billion), Bank of America Corp. (10.6% of portfolio, valued at $38.5 billion), and American Express Company (9.7% of portfolio, valued at $35.0 billion). Other major holdings are Coca-Cola Co. (6.9% of portfolio, valued at $24.9 billion), Chevron Corp. (5.5% of portfolio, valued at $19.7 billion), and Occidental Petroleum Corp. (4.4% of portfolio, valued at $16.0 billion).
Portfolio Breakdown
As of December 31, 2023 (except for some positions with more recent updates), Berkshire Hathaway’s top stock holdings were:
- Apple Inc. (AAPL) – 789,600,000 shares, valued at $144.78 billion, making up 40.1% of Berkshire’s portfolio
- Bank of America Corp. (BAC) – 1,032,852,006 shares, valued at $38.47 billion, 10.6% of portfolio
- American Express Company (AXP) – 151,610,700 shares, valued at $34.99 billion, 9.7% of portfolio
- Coca-Cola Co. (KO) – 400,000,000 shares, valued at $24.87 billion, 6.9% of portfolio
- Chevron Corp. (CVX) – 123,000,000 shares, valued at $19.71 billion, 5.5% of portfolio
- Occidental Petroleum Corp. (OXY) – 248,018,128 shares, valued at $15.97 billion, 4.4% of portfolio
- Kraft Heinz Co. (KHC) – 325,634,818 shares, valued at $11.84 billion, 3.3% of portfolio
Berkshire’s total portfolio value is $361.38 billion as of the reporting date.
Top 10 Holdings
Berkshire’s top 10 stock holdings by market value are:
- Apple (39.6% of portfolio)
- Bank of America (10.8%)
- Chevron (8.6%)
- American Express (6.9%)
- Coca-Cola (6.1%)
- Occidental Petroleum (5.1%)
- Kraft Heinz (3.1%)
- Moody’s (2.6%)
- U.S. Bancorp (1.7%)
- Activision Blizzard (1.6%)
Buffett’s Favorites
Apple is Berkshire’s largest holding, accounting for over 50% of the portfolio. Buffett has called it ‘probably the best business I know in the world’. Other top Buffett stock picks include Bank of America (10% of portfolio), American Express (8.2% of portfolio), Coca-Cola (6.8% of portfolio), Chevron (5.4% of portfolio), and Occidental Petroleum (4.1% of portfolio).
Analysts also like several Buffett stock picks for 2023, including Apple, Coca-Cola, General Motors, Visa, Bank of America, American Express, Chevron, Occidental Petroleum, Kraft Heinz, Moody’s, and Activision Blizzard.
Portfolio Snapshot
In summary, Berkshire Hathaway’s largest holdings include Apple (40.1% of portfolio), Bank of America (10.6%), American Express (9.7%), Coca-Cola (6.9%), Chevron (5.5%), and Occidental Petroleum (4.4%). The total portfolio value is $361.4 billion as of the reporting date, with a total market capitalization of $862.1 billion and $189.0 billion in cash as of March 31, 2024. The portfolio had 41 total holdings as of 2023-12-31, with a total value of $347.36 billion and a turnover rate of 1%. Buffett’s top 5 holdings as of 2023-12-31 were Apple Inc (50.19%), Bank of America Corp (10.01%), American Express Co (8.18%), Coca-Cola Co (6.79%), and Chevron Corp (5.41%).
Recent Buying and Selling Activity
Major Transactions
Berkshire Hathaway has been actively managing its portfolio, making several notable transactions in recent quarters. Here are some of the key buying and selling activities:
- Exited Positions
- Berkshire sold its entire stake in Paramount Global.
- Buffett exited positions in D.R. Horton Inc., StoneCo Ltd., Globe Life Inc., Markel Group Inc., and Activision Blizzard Inc.
- Reduced Stakes
- Berkshire reduced its stake in 8 companies in Q4 2022, with significant divestitures in Taiwan Semiconductor, U.S. Bancorp, and Bank of New York Mellon.
- Buffett trimmed his Apple stake slightly to keep its weighting from getting too high, but it still accounts for over 50% of the portfolio.
- Berkshire also reduced positions in HP, Paramount Global, and exited stakes in D.R. Horton, StoneCo, Markel, and Globe Life.
- Increased Holdings
- In Q4 2023, Buffett added to his positions in Chevron and Occidental Petroleum, taking advantage of weakness in the energy sector.
- Berkshire expanded its holdings in 3 stocks in Q4 2022: Paramount Global, Louisiana Pacific, and Apple.
- Buffett added to positions in Chevron Corp (+15.85 million shares), Occidental Petroleum Corp (+19.59 million shares), and Sirius XM Holdings Inc (+30.56 million shares).
Notable Transactions
| Company | Transaction |
|---|---|
| Chevron Corp. (CVX) | Increased stake by 15,845,037 shares (+14.4%) in Q4 |
| HP Inc. (HPQ) | Reduced stake by 79,666,320 shares (-77.7%) in Q4 |
| Apple Inc. (AAPL) | Trimmed stake by 10,000,382 shares (-1.1%) in Q4 |
| Occidental Petroleum Corp. (OXY) | Increased stake by 243,715,804 shares (+8.7%) |
| Paramount Global (PARA) | Reduced stake by 30,408,484 shares (-32.4%) |
| SiriusXM Holdings Inc. (SIRI) | Increased stake by 30,559,834 shares (+315.6%) |
Berkshire had $189.0 billion in cash as of March 31, 2024, providing ample resources for further investment opportunities. Buffett’s recent moves reflect his ongoing strategy of concentrating investments in sectors he believes offer long-term value, while trimming or exiting positions that no longer align with his investment principles.
Warren Buffett’s Investment Principles
Value Investing Approach
Warren Buffett follows the Benjamin Graham school of value investing, looking for securities with prices that are unjustifiably low based on their intrinsic worth. He is not concerned with the supply-and-demand intricacies of the stock market, but rather looks at each company as a whole and chooses stocks based on their overall potential as a business.
Long-Term Growth Potential
Buffett’s investment strategy has centered around value investing – finding undervalued companies with strong potential for growth and investing in them for the long-term. He places a premium on strong management and long-term growth potential.
Key Principles
Some key principles of Buffett’s strategy include:
- “Price is what you pay, value is what you get”
- “Be fearful when others are greedy and greedy when others are fearful“
Buffett’s Biggest Rules
Buffett’s biggest investing rules are:
- Never lose money
- Focus on the long-term
- Know what you’re investing in
Economic Moat
Buffett looks for businesses that have a strong ‘economic moat’ – the ability to defend or define their market position through market and pricing power.
Valuation Metrics
Buffett advises buying quality businesses or 80% stakes when the price is attractive, based on metrics like P/E ratio, earnings yield, and dividend yield.
Understanding the Business
Buffett only invests in businesses and industries he fully understands, avoiding technology stocks and speculative investments like cryptocurrencies.
Margin of Safety
Buffett prioritizes paying less than a company’s intrinsic value to protect against losses and create a ‘margin of safety’.
Contrarian Approach
Buffett emphasizes independence from market trends, advocating for a long-term, contrarian approach to investing. He takes a long-term view, stating ‘If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes‘.
Avoiding High-Growth Sectors
Buffett tends to avoid high-growth technology and biotech stocks that he doesn’t fully understand.
Key Strategies
Some of Buffett’s key investing strategies include:
- Long-term focus
- Investing in what you know
- Acting on bargains
- Trading against the grain
Conclusion
Warren Buffett’s investing approach has stood the test of time, grounded in principles of value investing, patience, and a long-term perspective. His portfolio reflects a preference for undervalued companies with strong economic moats, solid management, and sustainable competitive advantages. By sticking to his disciplined strategy, Buffett has consistently identified promising investment opportunities, even during market turbulence.
While the specific stocks in Berkshire Hathaway’s portfolio may evolve, Buffett’s core principles remain unwavering. His recent transactions, such as increasing stakes in energy companies and trimming positions in sectors he deems overvalued, exemplify his contrarian approach and willingness to go against market trends. As investors navigate an ever-changing market landscape, Warren Buffett’s time-tested wisdom serves as a guiding light for those seeking long-term success in the world of investing.
