Warren Buffett is one of the best investors who has ever lived. He is the CEO and head of Berkshire Hathaway, which is a holding company with many different businesses and stocks. Buffett has earned a devoted following among investors, known as the “Oracle of Omaha” thanks to his long track record of picking winners. In this blog post, we will answer questions and more. We will look at Warren Buffett Stocks Investments & philosophy, his portfolio disclosures, his top holdings by size and sector, and some of his recent trades. We will also give you some tips on how to invest like Warren Buffett and follow his example.
But what are the secrets behind Buffett’s stock investments? How does he choose which companies to buy and hold? And what are some of the best Warren Buffett stocks to buy and hold in 2023?
Warren Buffett Stocks Investments Philosophy
Buffett’s financial philosophy is based on the ideas of value investing, which he learned from his mentor Benjamin Graham. Value investing is the art of finding undervalued stocks that have strong fundamentals, competitive advantages, and growth potential.
Buffett looks for companies that have:
- A simple and understandable business model
- A consistent and high return on equity
- A strong and durable competitive advantage or “moat”
- A capable and trustworthy management team
- A fair price relative to their intrinsic value
Buffett buys stocks because he wants to own those businesses for the long term. He still sells stocks frequently and for a variety of reasons, but he approaches most of his investments with the mindset of owning them forever. He also prefers to invest in companies that pay dividends and reinvest their earnings for growth.
Buffett avoids investing in companies that he does not understand, that have too much debt, that operate in highly competitive or regulated industries, or that depend on unpredictable factors such as commodity prices or consumer trends.
Buffett’s Portfolio Disclosures
The Securities and Exchange Commission (SEC) requires Berkshire Hathaway to disclose its stock holdings quarterly via Form 13F. That gives investors everywhere a line of sight into which stocks Buffett and his team are buying and selling.
Unfortunately, there is a lag in the data. Berkshire’s most recent 13F, filed on February 14, 2023, outlines the company’s holdings as of December 31, 2022. The next quarterly filing is due in mid-May. You can access it through the SEC’s database EDGAR.
Buffett’s Top Stock Holdings By Size
At the end of the fourth quarter, the market value of Berkshire’s stock holdings was about $299 billion. This was up about $3 billion from the end of the third quarter. That amount of money is spread out over 49 stocks.
You can see the portfolio’s top 10 holdings by market value in the table below².
|Company (Ticker)||Sector||Shares Held||Market Value||% of Portfolio||Rank|
|Apple (AAPL)||Information Technology||895,136,175||$116.3 billion||38.9%||1|
|Bank of America (BAC)||Finance||1,010,100,606||$33.5 billion||11.2%||2|
|Chevron (CVX)||Energy||162,975,771||$29.3 billion||9.8%||3|
|Cola-Cola (KO)||Consumer Staples||400,000,000||$25.4 billion||8.5%||4|
|American Express (AXP)||Finance||151,610,700||$22.4 billion||7.5%||5|
|Kraft Heinz (KHC)||Consumer Staples||325,634,818||$13.3 billion||4.4%||6|
|Occidental Petroleum (OXY)||Energy||194,351,650||$12.4 billion||3.7%||7|
|Moody’s Corporation (MCO)||Finance||24,669,778||$7.7 billion||2.3%||8|
|Activision Blizzard (ATVI)||Communication Services||37,750,000||$3.9 billion||1.2%||9|
|HP Inc. (HPQ)||Information Technology||.|
Buffett’s Top Stock Holdings By Sector
Berkshire’s stock portfolio is also diversified by sector. The company makes investments in many different fields, such as information technology, banking, energy, consumer staples, communication services, health care, industrials, and materials.
As you can see, the information technology sector makes up 39.1% of the total value of Berkshire’s holdings. This is mostly because Berkshire has a huge stake in Apple, which is by far the company’s biggest investment.
Finance is the second-largest sector, with 28.2% of the portfolio value. Berkshire owns stakes in several major banks, such as Bank of America, American Express, Wells Fargo, and JP Morgan Chase. It also owns shares of credit rating agency Moody’s and insurance companies such as Geico and Progressive.
With 13.5% of the portfolio value, energy is the third largest category. Berkshire has put money into oil and gas companies like Chevron and Occidental Petroleum, as well as companies that use green energy like NextEra Energy and BYD.
Consumer staples is the fourth-largest sector, with 13.2% of the portfolio value. Berkshire has stock in well-known companies like Coca-Cola, Procter & Gamble, Kraft Heinz, and Costco.
The remaining sectors are much smaller in comparison, each representing less than 5% of the portfolio value.
Warren Buffett Recent Stocks Trades / Investments
Berkshire Hathaway is not a passive investor. It constantly monitors its holdings and makes adjustments according to its valuation and outlook. In the fourth quarter of 2022, Berkshire made several notable trades that reflect its changing views on certain sectors and companies.
Here are some of the most significant trades that Berkshire made in the last quarter²:
- Bought more shares of Chevron (+9.7 million), AbbVie (+4.3 million), Bristol-Myers Squibb (+3.7 million), Merck (+3.7 million), Kroger (+1.8 million), T-Mobile (+1.2 million), Verizon (+146.7 million), and Marsh & McLennan (+4.3 million).
- Sold some shares of Apple (-57.2 million), Bank of America (-58.9 million), Wells Fargo (-74.9 million), General Motors (-7 million), Liberty Global (-7.3 million), Liberty Latin America (-1.8 million), M&T Bank (-2.9 million), Synchrony Financial (-3.5 million), US Bancorp (-1.6 million), and Axalta Coating Systems (-1.7 million).
- Initiated new positions in Verizon (+146.7 million) and Marsh & McLennan (+4.3 million).
- Exited positions in Barrick Gold (-12 million), Pfizer (-3.7 million), JPMorgan Chase (-967,267), M&T Bank (-2.9 million), PNC Financial Services Group (-1.9 million), and Synchrony Financial (-3.5 million).
These trades show that Berkshire is bullish on energy, health care, telecom, and consumer sectors, while it is bearish on financials, gold, and auto sectors.
How to Invest Like Warren Buffett Stocks Investments
If you want to invest like Warren Buffett, you need to follow his principles and emulate his habits. Here are some tips on how to do that:
- Read a lot: Buffett is an avid reader who spends hours every day reading books, newspapers, magazines, reports, and other sources of information. He believes that reading helps him learn new things, expand his knowledge base, and improve his decision-making skills.
- Think long term: Buffett does not chase short-term gains or follow market trends. He invests in companies that he believes will grow their earnings and value over time. He ignores market noise and focuses on the fundamentals of the business.
- Be patient: Buffett does not buy or sell stocks based on emotions or impulses. He waits for the right opportunity to buy undervalued stocks and holds them for years or decades until they reach their full potential.
- Be selective: Buffett does not invest in every company that he comes across. He only invests in companies that he understands well, that have a strong competitive advantage, that have a capable management team, and that are priced below their intrinsic value.
- Be diversified: Buffett does not put all his eggs in one basket. He invests in different sectors, industries, and geographies to reduce his risk and increase his returns. He also invests in different types of assets, such as stocks, bonds, real estate, and private businesses.
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Warren Buffett is a legendary investor who has built a fortune by investing in high-quality businesses at reasonable prices. His stock portfolio is a reflection of his investment philosophy, which is based on the principles of value investing.
By studying Buffett’s portfolio, you can learn a lot about his strategy, his preferences, his views, and his trades. You can also use his portfolio as a source of inspiration and ideas for your own investments.
However, you should not blindly copy Buffett’s portfolio or follow his every move. You should do your own research, analysis, and due diligence before investing in any stock. You should also have your own goals, risk tolerance, and time horizon.
Remember that Buffett is not infallible or omniscient. He makes mistakes and misses opportunities like everyone else. He also has access to information and resources that most investors do not have.
The best way to invest like Warren Buffett is to learn from him, but not to imitate him. You should develop your own investment style, based on your own strengths, weaknesses, and preferences. You should also be flexible and adaptable to changing market conditions and opportunities.
By doing so, you can become a better investor and achieve your financial goals.