You need to keep up on Warren Buffett stocks, because while theBerkshire Hathaway (BRKB) chief sticks to a winning investing formula, that doesn't mean sitting still.
All told, Buffett and his team oversee around 50 stocks in Berkshire's equity portfolio.
Berkshire Hathaway Investment Strategy
While Apple stock is the No. 2 stock in the portfolio by number of shares, it is No. 1 by market value.
At the beginning of 2024, Berkshire's position in Apple was worth a whopping $174.4 billion.
In fact, Berkshire Hathaway is a major institutional owner of AAPL stock, which you could call the poster child for Warren Buffett stocks due to its strong earnings, returns and management.
Top Buffett stocks tend to be dividend growers. Take Coca-Cola (KO) stock, which has grown dividends for more than 50 years in a row.
Between 1965 and 2023, the widely followed Berkshire Hathaway portfolio posted a 19.8% compound annual gain. That is nearly double the 10.2% return of the S&P 500 index, with dividends included.
Buy And Hold For The Long Term
Buffett is known as a buy-and-hold investor, hanging on to stocks for years and even decades. But there has been rapid turnover lately.
In 2023, the investing legend ditched various financial stocks just a few quarters after buying them for the first time.
In the previous two years, Berkshire Hathaway dumped several drug and biotech stocks, not long after opening bets on them.
In 2020, Berkshire exited its airlines stocks amid the pandemic hit to travel, shortly after buying them.
However, the Berkshire chief continues to prioritize finding and buying quality stocks at a fair price — and holding them for the long term. He patiently builds those stock positions over time.
Buffett has owned Coca-Cola since 1988, for example. He has owned American Express since 2001 and Apple since 2016.
And Apple stock now makes up half of Berkshire's total equity portfolio, up from 6% in 2016.
Warren Buffett's stock purchases in the most recent quarter include Chubb Limited (CB) and Occidental Petroleum (OXY). HP Inc. (HPQ) and Paramount Global (PARA) are among Warren Buffett's stock sales in the most recent quarter. The Berkshire Hathaway portfolio includes 41 stocks as of May 2024, including Apple Inc.
Warren Buffett's stock purchases in the most recent quarter include Chubb Limited (CB) and Occidental Petroleum (OXY). HP Inc. (HPQ) and Paramount Global (PARA) are among Warren Buffett's stock sales in the most recent quarter. The Berkshire Hathaway portfolio includes 41 stocks as of May 2024, including Apple Inc.
Reports of confidential stock purchases by Berkshire Hathaway have circulated since late last year. Those mysterious purchases, made in Q3 and Q4 of 2023, became known through financial disclosures. Chubb joins several financial stocks in Berkshire's equity portfolio.
To potentially turn $10k into $100k, consider investments in established businesses, real estate, index funds, mutual funds, dividend stocks, or cryptocurrencies. High-risk, high-reward options like cryptocurrencies and peer-to-peer lending could accelerate returns but also carry greater risks.
Buffett also added that it's “extremely likely” that Apple Inc (NASDAQ:AAPL) would be Berkshire's “largest holding” by the end of 2024. That means Apple Inc (NASDAQ:AAPL) is the top favorite stock of Warren Buffett, for now.
While Musk's portfolio has been primarily focused on his own ventures, it has evolved to include investments in AI, neurotechnology, and social media platforms like Twitter (X). However, his core holdings remain in companies like Tesla and SpaceX.
Apple is Berkshire's largest public stock holding by far. Berkshire's $151 billion Apple stake is roughly four times larger than its second-largest holding. Buffett first bought Apple shares in the first quarter of 2016, and Apple's stock price is up more than 500% since the beginning of 2016.
While his investing acumen is unmatched, Buffett believes the real key to success is much simpler: invest in yourself. At Berkshire Hathaway's famous annual shareholder meetings and in interviews, Buffett often repeats his motto: to stand out, you must improve yourself to the point where others can't ignore you.
Apple is the world's most valuable public company and Warren Buffet's largest stock holding. Under the leadership of CEO Tim Cook, Apple has continued to provide outstanding value to long-term shareholders.
Surprisingly, Buffett has never recommended Berkshire stock. Instead, he has regularly advised investors to periodically purchase shares of an index fund that tracks the S&P 500 (SNPINDEX: ^GSPC).
With its 4-star rating, we believe Berkshire Hathaway's stock is undervalued compared with our long-term fair value estimate of $427 per Class B share, which is equivalent to 1.45 times our estimate of the firm's book value per share at the end of 2024 and 1.35 times for 2025.
So, why does Buffett only recommend index funds? Because it's the best possible choice, "on an expectancy basis," as he put it. In other words, buying an index fund has a higher expected return than buying any single individual stock or actively managed mutual fund.
With its 4-star rating, we believe Berkshire Hathaway's stock is undervalued compared with our long-term fair value estimate of $427 per Class B share, which is equivalent to 1.45 times our estimate of the firm's book value per share at the end of 2024 and 1.35 times for 2025.
Introduction: My name is Velia Krajcik, I am a handsome, clean, lucky, gleaming, magnificent, proud, glorious person who loves writing and wants to share my knowledge and understanding with you.
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