5 Top Holdings Of Warren Buffett's Investment
On the basis of his remarkable track record of performance, Warren Buffett is without a doubt the most well-known and significant investor in recent history. Unsurprisingly, despite the fact that Buffett is no longer responsible for all investment decisions, the investment firm Berkshire Hathaway Inc. (BRK.A), which employs the Oracle of Omaha as chairman and CEO, draws extensive media attention.
Despite his remarkable success, Buffett's investment strategy has always been open, uncomplicated, and reliable. He makes investments in well-capitalized, large, blue-chip companies with appealing values. Buffett frequently makes long-term investments, but he has never been reluctant to take major risks or sell off long-held interests. Early in 2022, he and his team demonstrated this by placing a significant wager on Chevron Corp. (CVX) while selling off Wells Fargo & Co. (WFC), a company that Berkshire Hathaway had held since 1989. Below is Berkshire Hathaway's top five holdings as of March 31, 2022.
KEY LESSONS
- As of March 31, 2022, Warren Buffett's Berkshire Hathaway held a portfolio of prestigious American stocks worth $390.5 billion.
- Apple Inc. (AAPL), Bank of America Corp. (BAC), American Express Company (AXP), Chevron, and The Coca-Cola Company are the portfolio's top five holdings (KO).
- Apple represents approximately 41% of Berkshire's investment portfolio, making it its largest stake.
- Almost 70% of the portfolio is made up of the top 5 holdings.
- Buffett significantly raised Berkshire's investments in Chevron during the first quarter of 2022, while also selling off the last portion of a long-standing interest in Wells Fargo.
Top Holdings Of Warren Buffet
Apple
At $159.1 billion as of Q1 2022, Apple, the company that makes iPhones, has become one of Berkshire Hathaway's biggest stock positions, making up over 41% of its stock portfolio and 5.5% of Apple's remaining shares. For less than $35 million, Berkshire Hathaway purchased the share between 2016 and 2019.
Apple replaced Wells Fargo as Berkshire Hathaway's highest stock in early 2018.
The final portion of Berkshire Hathaway's Wells Fargo shareholding, which was valued at $25.2 billion four years prior, was sold in the first quarter of 2022.
Bank of America
Bank of America is the second-largest investment of Berkshire Hathaway, with a holding of $42.6 billion and 10.9% of the investment as of Q1 2022. 12.5% of the remaining shares of the bank were held by Berkshire Hathaway.
In return for the warrants Berkshire Hathaway obtained in 2011 when it invested $5 billion in the bank's preference shares, Buffett purchased 700 million of the 1 billion Bank of America stocks Berkshire Hathaway currently owns in 2017 at a price of around $7.14 per share.
American Express
In Q1 2022, Berkshire Hathaway owned $28.6 billion worth of shares in financial services firm American Express, which made up 7.3% of its overall holdings.
The investment was made in 1994 when Buffett traded warrants for AmEx stock from a $300 million preference shares investment that generated a 64% three-year return. Over the past ten years, Berkshire Hathaway has increased its ownership of American Express dramatically.
Chevron
Chevron became Berkshire Hathaway's fourth-largest asset at the close of the first quarter of 2022 after Buffett significantly raised Berkshire Hathaway's position in the integrated oil major to $25.9 billion. The funding portfolio of Berkshire Hathaway included 6.6% of Chevron shares, while Berkshire owned 8.1% of Chevron's remaining shares.
Prior to year-end 2021, Berkshire Hathaway reported owning a $4.5 billion interest in Chevron, which Buffett began purchasing in the third quarter of 2020.
When questioned about Chevron's role in climate change at Berkshire Hathaway's 2021 investor meeting, Buffett responded, "Chevron is not at all a bad corporation, and I have no qualms about holding Chevron.
Coca-Cola
Buffett is known for drinking five 12-ounce servings of Coke each day and once referred to himself as "a 1⁄4 Coca-Cola" due to the beverage's contribution to his caloric intake.
With a $24.8 billion investment in Coca-Cola, Berkshire Hathaway manages to allocate 6.4% of its investment portfolio to this company. 9.2% of Coca-outstanding Cola's shares is represented by that.
In the subsequent letter to shareholders, once Buffett started building up the investment in 1988, he stated that he intended to retain it "for a long time." Our preferred holding term is actually forever if we own shares of exceptional companies with excellent management, Buffett wrote.
More You Need To Know About Warren Buffet's Investment
Which Stocks Do Berkshire Hathaway's Top 10 Own?
The holding firm controlled by Warren Buffett, Berkshire Hathaway, is a significant shareholder in a series of important public corporations. Following the top five companies mentioned above, The Kraft Heinz Company (KHC), Moody's Corp. (MCO), Occidental Petroleum Corp. (OXY), U.S. Bancorp (USB), and Activision Blizzard Inc. rank as Berkshire's next biggest public company investments (ATVI). 1721 Berkshire Hathaway also owns subsidiaries such as GEICO Insurance, BNSF Railways, Duracell, and International Dairy Queen Inc. in addition to holding stakes in publicly traded firms.
Which Railroad Is Owned by Warren Buffett?
A fully owned component of Warren Buffett's Berkshire Hathaway is BNSF Railways, originally known as Burlington Northern Santa Fe.
How many insurance firms does Warren Buffet own?
GEICO, Cypress Insurance, General Re, Berkshire Hathaway Re, National Fire & Marine Insurance Co., and National Indemnity Co. are just a few of the insurance firms owned by Berkshire.
What Is the Meaning Behind the Name Berkshire Hathaway?
The Berkshire Fine Spinning Associates of Adams, Massachusetts, and the Hathaway Manufacturing Company of New Bedford, Massachusetts, merged in 1955, giving rise to the name Berkshire Hathaway. In 1962, Buffett started acquiring Berkshire Hathaway stock, and in 1964, he fully acquired the business. He had decided to sell the administration his stock, only to find that the value of the competitive bidding process was less than what he had been told. This infuriated me, Buffett recounted. In 1967, he purchased the company's first insurance company, and in 1985, he closed the final textile plant.
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