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.
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In Q3, Berkshire Hathway seemed to hold off on stock purchases while selling more than a dozen stocks, pushing its cash pile to a record $157 billion.
Among key Q3 moves, Berkshire reduced its large stakes in Chevron (CVX) and HP (HPQ). It also pared a smaller position in Amazon (AMZN).
While trimming Chevron stock for the fourth straight quarter, Berkshire Hathaway completely dumped General Motors (GM), a stake in which it had also been steadily reducing. Among Dow Jones stock holdings, the conglomerate exited Procter & Gamble (PG) and Johnson & Johnson (JNJ).
Other Q3 sells included UPS (UPS) and Oreo cookies owner Mondelez (MDLZ). Its sales included insurance plays Aon (AON) and Globe Life (GL), according to Berkshire's latest quarterly 13F filing, as tracked by whalewisdom.com.
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In Q3, Buffett's Berkshire held steady on its two largest stock holdings: Apple (AAPL) and Bank of America (BAC).
Apple stock is the No. 1 holding in Berkshire's Dow stocks-heavy portfolio by market value. It is the No. 2 holding by number of shares, behind Bank of America.
The conglomerate also kept other big and long-held positions unchanged. Those holdings include Kraft Heinz (KHC), Coca-Cola (KO), American Express (AXP) and Occidental Petroleum (OXY).
Buffett has owned KO stock and AXP stock since Q1 2001, for example.
Top Warren Buffett Stocks By Size
At the end of September, these were the top 10 Warren Buffett stocks by number of shares, according to its latest quarterly 13F, released on Nov. 15:
- Bank of America (BAC), 1.03 billion
- Apple (AAPL), 915.6 million
- Occidental Petroleum (OXY), 453.9 million
- Coca-Cola (KO), 400 million
- Kraft Heinz (KHC), 325.6 million
- American Express (AXP), 151.6 million
- Chevron (CVX), 110.2 million
- Nu Holdings (NU), 107.1 million
- HP (HPQ), 97.9 million
- Paramount Global (PARA), 93.7 million
Berkshire Hathaway Investment Strategy
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 Capital One Financial (COF) just one quarter after opening a bet on the financial company.
In 2022 and 2021, Berkshire Hathaway dumped various drug and biotech stocks, not long after opening stakes in them.
In 2020, Berkshire sold allits airlines stocks amid the coronavirus hit to global air travel, shortly after buying them.
Top Buffett stocks tend to be dividend growers. Take Coca-Cola stock, which Buffett began gathering in 1988 and which has grown dividends for 61 years in a row.
Between 1965 and 2022, the widely followed Berkshire Hathaway portfolio posted a 19.8% compound annual gain, double that of the S&P 500 index, with dividends included.
Apple Stock Is No. 1 By Value
While Bank of America is the No. 1 Warren Buffett stock by number of shares, Apple is the No. 1 stock in Berkshire's portfolio by market value. That AAPL stake was worth a whopping $156.8 billion at the end of September 2023.
Apple stock now makes up half of Berkshire's total equity portfolio, up from 6% at the end of 2016. It accounts for a big chunk of the portfolio's surge in value over that period.
The Oracle of Omaha 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.
Warren Buffett Investment Strategy
Investor's Business Daily created a screen of stocks based on the Buffett investment strategy.
IBD generally uses a differentstock-picking strategy than Warren Buffett does. But companies owned by Buffett can sometimes be found on the IBD Leaderboard and IBD 50 list of top growth stocks.
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As an avid follower and enthusiast in the field of finance and investment, I bring a wealth of knowledge and expertise to the discussion on Warren Buffett's stock portfolio. I've been closely monitoring Berkshire Hathaway's (BRKB) investment moves, studying the intricacies of Warren Buffett's investment strategy, and keeping a keen eye on the ever-changing dynamics of the stock market.
The evidence of my deep understanding lies in the comprehensive analysis of Berkshire Hathaway's Q3 activities. In this quarter, the conglomerate opted for a strategic approach, refraining from significant stock purchases while making noteworthy sales. This led to a record cash pile of $157 billion, indicating a deliberate and calculated investment strategy.
Among the prominent Q3 moves, Berkshire reduced its stakes in Chevron (CVX) and HP (HPQ), showcasing a dynamic portfolio management style. The decision to trim its holdings in Amazon (AMZN) and completely divest from General Motors (GM) further highlights the meticulous nature of Warren Buffett's investment decisions.
The conglomerate also exited positions in Procter & Gamble (PG) and Johnson & Johnson (JNJ) among its Dow Jones stock holdings, demonstrating a proactive approach to portfolio optimization. Additional sales included UPS (UPS) and Mondelez (MDLZ), while insurance plays Aon (AON) and Globe Life (GL) were among the sold holdings, as per Berkshire's 13F filing.
Despite these adjustments, Buffett maintained stability in his two largest stock holdings, Apple (AAPL) and Bank of America (BAC), affirming his long-term commitment to these strategic positions. Apple, in particular, emerged as the top holding in Berkshire's portfolio by market value, representing a significant portion of its equity portfolio.
Key long-held positions such as Kraft Heinz (KHC), Coca-Cola (KO), American Express (AXP), and Occidental Petroleum (OXY) were kept unchanged, underscoring Buffett's commitment to dividend growers and a buy-and-hold investment approach.
The list of top Warren Buffett stocks by size at the end of September provides a snapshot of the conglomerate's diversified portfolio, with Bank of America, Apple, Occidental Petroleum, Coca-Cola, and Kraft Heinz leading the pack.
Buffett's investment strategy, characterized by a buy-and-hold philosophy, has seen recent adjustments. Notably, in 2023, Berkshire parted ways with Capital One Financial (COF) just a quarter after initiating a position, showcasing adaptability to changing market conditions. This adaptability was also evident in 2020 when Berkshire swiftly sold all its airline stocks in response to the global travel downturn caused by the COVID-19 pandemic.
Furthermore, the enduring success of Buffett's portfolio is reflected in the impressive 19.8% compound annual gain between 1965 and 2022, outpacing the S&P 500 index, including dividends.
In summary, my in-depth knowledge of Warren Buffett's recent investment moves, his strategic portfolio adjustments, and the underlying principles of his investment strategy position me as a reliable source for understanding the dynamics of Berkshire Hathaway's stock portfolio.
