You need to keep up on Warren Buffett stocks, because while the Berkshire Hathaway (BRKB) chief sticks to a winning investing formula, that doesn’t mean sitting still.
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In Q1 2023, Buffett grew his two largest stock holdings: Apple (AAPL) and Bank of America (BAC). AAPL 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 BAC stock.
Buffett’s Berkshire broadly tuned its exposure to bank stocks during the quarter, amid turmoil in the banking center. Notably, the conglomerate bought Capital One Finance (COF) for the first time. At the same time, Berkshire sold off its remaining stake in Bank of New York Mellon (BNY) and U.S. Bancorp (USB), continuing a trend of dumping several bank stocks of late.
Berkshire also exited Taiwan Semiconductor (TSM), an Apple chip supplier. Taiwan Semi, also known as TSMC, is the world’s largest contract chipmaker. Investing legend Buffett has grown wary of the possibility of China invading Taiwan.
Among other key Q1 moves, Berkshire grew its hefty position in HP (HPQ) by 15% and in Occidental Petroleum (OXY) by 8%. It slashed a stake in oil major Chevron (CVX) by 18%, according to Berkshire’s latest quarterly 13F filing, as tracked by whalewisdom.com.
Berkshire continued to buy more OXY shares in Q2. Its Occidental stake is now around 25%, according to a June 28 filing.
The Q1 increases in Berkshire’s stakes in Apple, Bank of America, HP and a few other companies reflected a reporting change rather than additional purchases. Starting in Q1, the conglomerate began reporting shares owned by a subsidiary, New England Asset Management, as part of its own holdings.
In Q1, Berkshire kept other big and long-held positions steady. Those holdings include Kraft Heinz (KHC), Coca-Cola (KO) and American Express (AXP).
Buffett has owned KO stock and AXP stock since Q1 2001, for example.
Top Warren Buffett Stocks By Size
At the end of March, these were the top 10 Warren Buffett stocks by number of shares, according to its latest quarterly 13F, released on May 15:
- Bank of America (BAC), 1.03 billion
- Apple (AAPL), 915.6 million
- Coca-Cola (KO), 400 million
- Kraft Heinz (KHC), 325.6 million
- Occidental Petroleum (OXY), 211.7 million
- American Express (AXP), 151.6 million
- Chevron (CVX), 132.4 million
- HP (HPQ), 120.9 million
- Nu Holdings (NU), 107.1 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 major turnover lately.
The investing legend sold off Taiwan Semi in Q1 2023, after opening a bet on the chipmaking giant just two quarters prior.
In 2022, Berkshire Hathaway dumped AbbVie (ABBV), Bristol Myers Squibb (BMY) and Royalty Pharma (RPRX), not long after buying them for the first time.
The prior year, the conglomerate exited Biogen (BIIB), Merck (MRK), Teva Pharmaceuticals (TEVA) and Merck spinoff Organon (OGN), also not long after opening stakes in those drug stocks.
In 2020, Berkshire bought, then quickly sold Pfizer (PFE) and Barrick Gold (GOLD). It also ditched Costco (COST), as well as all of its airlines stocks amid the coronavirus hit to global air travel.
Berkshire exited drywall maker USG (USG) in 2019, IBM (IBM) in 2018, and General Electric (GE) in 2017.
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 stake was worth a whopping $150.9 billion at the end of March 2023.
Apple stock now makes up more than 46% 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 different stock-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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Source: https://www.investors.com/research/warren-buffett-stocks/?src=A00220&yptr=yahoo