Site icon Industry Trend

Warren Buffett’s top 5 portfolio positions

Warren Buffett is one of the world’s most successful stock investors with a net worth of $118 billion. His success is mostly attributed to finding great companies at a discount.

Buffett’s holding company Berkshire Hathaway (NYSE: BRK.A, BRK.B.) holds positions in multiple US and foreign companies. His five holdings are among the most popular companies in the US, and everyone should consider having them in their portfolio for the long term.

Apple

Apple (NASDAQ: AAPL) is the world’s most popular smartphone company, holding over 57% of the US smartphone market share. The company also makes tablets, laptops, and desktop computers as well as accessories for them.

Berkshire Hathaway holds 915 million Apple shares worth $177 billion. This makes 51% of Hathaway’s total portfolio, which shows Buffett’s conviction in the stock.

Apple stock could see some movement in September as the new iPhones are set to launch, along with the new Apple Watch Series 9. The reveal is set for September 12 at the Steve Jobs Theater on Tuesday, which can also be streamed live.

This is one of the most profitable companies in the world, with over $350 billion in revenues each year. The stock returned 46% year-to-date. However, recently the stock has been down a bit with the latest info on China’s ban on government officials using iPhones at work.

Bank of America

Bank of America (NYSE: BAC) is a bank and financial holding company that serves several segments, including consumer banking, investment management, credit and banking services to small businesses, as well as global banking via Merrill Wealth Management.

Berkshire Hathaway owns 1 billion of BAC shares worth $29 billion. Bank of America makes 8.51% of the total Hathaway portfolio.

The BAC stock has been beaten down this year, but it’s still liquid, with over 50% of deposits ready to be paid out if needed. This makes the risk of failure relatively low in case of a bank run.

Bank of America pays out a 3.38% yearly dividend, which is another reason this stock is a good pick.

American Express

American Express (NYSE: AXP) is another financial stock as a top holding by Berkshire Hathaway. The company provides global payments via its credit cards, but it also provides consumer products to individuals and businesses.

Berkshire Hathaway holds 151 million shares worth $26 billion. With 7.59% of Hathaway’s portfolio, this is its third-largest holding.

American Express saw strong fundamental performance in the past few years. In its Q3 report, the company saw a revenue of $15.1 billion, which was a record revenue for the company. That’s up 12% from $13.4 billion a year ago.

AXP is up 7.4% year-to-date.

Coca-Cola Co

Coca-Cola Co (NYSE: KO) is a beverage company that owns licenses for various beverage brands, such as Coca-Cola, Fanta, Bodyarmor, Fuze Tea, Costa Coffee, and more. Its products are available in more than 200 countries.

Buffett’s holding company owns 400 million Coca-Cola shares, worth $24 billion. This company makes up 6.92% of Hathaway’s portfolio.

Coca-Cola has underperformed this year even after adding the 3.13% yearly dividend. The stock performance doesn’t match the company fundamentals, though; Coca-Cola enjoys continuous growth, it’s profitable, and has excellent cash flow.

Its Q2 report beat analyst estimates with a revenue of $12 billion, up 6% year-over-year, and earnings per share of $0.78.

KO is down 6.6% year-to-date.

Chevron Corp

Chevron Corp (NYSE: CVX) is an energy company that produces oil and natural gas. It also manufactures transportation fuels, lubricants, petrochemicals, and additives, while developing technologies to improve the industry.

This company makes up 5.56% of Hathaway’s portfolio, where the holding company owns 123 million shares worth $19 billion.

Chevron’s Q2 earnings report surpassed estimates in revenue by 8%. The company reported a net profit of $6 billion for the quarter, which even though it beat estimates it’s almost half of the profit for the same period last year.

CVX is down 4% year-to-date.

Buy stocks now with Interactive Brokers – the most advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

The post Warren Buffett’s top 5 portfolio positions appeared first on Finbold.

Exit mobile version