What Holdings Does Berkshire Hathaway, Warren Buffett’s Company, Have in Its Portfolio?
Staying abreast of Warren Buffett’s stock choices is crucial, as the Berkshire Hathaway (BRKB) leader adheres to a successful investment formula that involves strategic adjustments. In the fourth quarter of 2023, Berkshire Hathaway refrained from initiating new stock acquisitions but reduced its holdings in Apple (AAPL), HP (HPQ), and Paramount Global (PARA), as per the latest 13F filing.
Berkshire increased its investments in Chevron (CVX) and Occidental Petroleum (OXY), thereby reinforcing its commitment to the oil sector. As of the commencement of 2024, the top 10 stocks in Berkshire’s portfolio, based on the number of shares, included Bank of America (BAC), Apple (AAPL), Coca-Cola (KO), Kraft Heinz (KHC), Occidental Petroleum (OXY), American Express (AXP), Chevron (CVX), Nu Holdings (NU), Paramount Global (PARA), and Citigroup (C). Overall, Buffett and his team manage around 50 stocks in Berkshire’s equity portfolio.
Examining Berkshire Hathaway’s investment strategy, it is notable that while Apple holds the second position in the portfolio by the number of shares, it claims the top spot by market value. The market value of Berkshire’s Apple position at the outset of 2024 reached an impressive $174.4 billion. Berkshire Hathaway stands out as a major institutional holder of AAPL stock, often considered a quintessential example of Warren Buffett’s stock choices, given its robust earnings, returns, and management.
The prominent characteristic of top Buffett stocks is their tendency to be dividend growers. Coca-Cola stock, for instance, has consistently increased dividends for over 50 consecutive years.
Throughout the period from 1965 to 2023, Berkshire Hathaway’s widely monitored portfolio demonstrated a compound annual gain of 19.8%, nearly doubling the 10.2% return of the S&P 500 index, inclusive of dividends.
Despite Buffett’s reputation as a long-term buy-and-hold investor, recent times have seen some rapid turnover in his portfolio. In 2023, he divested various financial stocks shortly after their initial acquisition. However, Buffett remains committed to identifying and acquiring quality stocks at fair prices, adhering to a patient approach of building stock positions over time.
Buffett’s enduring ownership of stocks like Coca-Cola since 1988, American Express since 2001, and Apple since 2016 exemplifies his steadfast commitment to the buy-and-hold strategy. Notably, Apple now constitutes half of Berkshire’s total equity portfolio, a significant increase from its 6% share in 2016.
Investor’s Business Daily has developed a stock screen based on the Buffett investment strategy, recognizing that while IBD generally employs a different stock-picking approach, companies owned by Buffett occasionally feature on IBD Leaderboard and IBD 50 lists of top growth stocks.
