As a legend in the investment world, Warren Buffett is known to almost everyone, and his investment portfolio is widely regarded as a key reference for measuring market trends and exploring investment opportunities.
In 2024, Buffett's holding company Berkshire Hathaway (hereinafter referred to as "Berkshire") (BRK.A)(BRK.B)'s 25.8% return rate surpassed the S&P 500's 24.1%.
If you had invested $1,000 in Berkshire Hathaway when Buffett acquired a controlling stake in the company in 1965 and became its CEO, your stake would now be worth more than $37 million.
At Berkshire's annual shareholder meeting, the company releases its quarterly 13F form. This document lists the company's stock holdings, as well as the stocks Buffett is buying and selling. Excluding Berkshire's relatively small holdings in two index funds, Buffett manages a portfolio of 44 stocks at Berkshire worth $291.2 billion.
Buffett's top stock holdings
Buffett advocates long-term holding of high-quality stocks. He believes that as long as the company's fundamentals remain good and profitability continues to improve, it should be held firmly. Many of his investments are long-term, such as investments in Wells Fargo and Coca-Cola, which have been held for decades. He believes that by holding for the long term, he can fully enjoy the dividends brought by the company's growth and avoid the costs and risks brought by frequent transactions.
Currently, Berkshire holds more than 40 stocks, but nearly 75% of its invested assets are tied up in seven stocks.
Data source: Berkshire Hathaway 13F-HR filing
Among them, Berkshire sold a large number of Apple shares in 2024, which was its fourth consecutive quarter of reducing its holdings of Apple shares. The company held 300 million shares at the end of September 2024, a significant decrease from 900 million shares at the end of 2023. In the third quarter, it reduced its holdings by 100 million shares, accounting for 25% of its holdings in that quarter.
Market analysts believe that Apple's stock valuation is high, and Berkshire has reduced its stake in Apple to optimize its investment portfolio and diversify its risks. Buffett once said that the reduction was partly due to tax factors, and the US government's rising fiscal deficit may lead to an increase in capital gains tax in the future.
Still, Apple remains at the top of Berkshire's portfolio. Buffett has called Apple Berkshire's "third largest business" after its wholly owned insurance and railroad businesses. Buffett also said Apple is "probably the best business I know in the world."
Meanwhile, Buffett recently increased his holdings in the following three stocks.
Overall, Buffett's investment portfolio is diversified, covering multiple industries such as consumption, finance, energy, and technology. He reduces risks through diversified investments and pursues long-term stable returns.
What stocks has Buffett sold recently?
Among the top holdings, one of the biggest news in 2024 is that Buffett continues to sell stocks. Berkshire has been a net seller of stocks in each of the past eight quarters, and this selling activity has continued to increase in 2024, with net stock sales exceeding $127 billion in the first three quarters of 2024.
In addition to Apple, Berkshire also significantly reduced its holdings of Bank of America shares. Since July 2024, Berkshire has reduced its holdings of Bank of America shares by approximately US$8.952 billion. After this reduction, Berkshire's shareholding in Bank of America's outstanding shares has dropped to 10.5%.
Should you follow Buffett in investing?
Although Buffett has made great achievements in the investment world and his investment moves have attracted much attention, ordinary investors should not blindly follow suit.
Buffett has rich investment experience, a professional team and a unique investment philosophy. His investment decisions are based on in-depth research on company fundamentals, accurate assessment of long-term value and a comprehensive grasp of the macroeconomic situation. However, ordinary investors are far behind Buffett in terms of information acquisition, analytical ability and risk tolerance.
Therefore, investors can regard Berkshire's investment portfolio as an important reference, and prudently formulate investment strategies based on their own financial situation, investment goals, risk preferences and expertise, rather than simply copying Buffett's investment behavior.
May have the following questions about Buffett's investment portfolio
What stocks does Buffett own directly and personally?
Buffett's personal holdings are somewhat related to Berkshire's investment portfolio but not identical. Information on his personal holdings is usually obtained through Buffett's personal financial reports or public statements, but such information is limited and may be confidential.
What types of companies does Buffett primarily invest in?
Judging from historical investment records, Buffett tends to invest in companies with strong brands, stable cash flow, high market share, excellent management teams and sustainable competitive advantages, covering industries such as consumption, finance, energy, and technology. For example, Coca-Cola in the consumer sector, American Express and Bank of America in the financial sector, Chevron and Occidental Petroleum in the energy sector, and Apple in the technology sector. He focuses on the company's long-term profitability and intrinsic value, rather than short-term market fluctuations and hot trends.
What dividend stocks does Buffett have in his portfolio?
In its investment portfolio, there are many stocks with a stable record of dividend payments. For example, Coca-Cola has long provided dividend returns to shareholders with the support of stable cash flow. American Express, Chevron and other companies also pay dividends regularly when their profits are stable. These dividend stocks bring cash flow income to Berkshire, and also reflect the company's financial health and profitability. They are one of the important sources of income for the investment portfolio. Investors can pay attention to the dividend policy, profit stability and industry prospects of these stocks to evaluate their investment value.
