Warren Buffett Stocks: What’s Inside Berkshire Hathaway’s Portfolio?

Table of Contents

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.

In the third quarter of 2022, the traditionally tech-averse Buffett opened a sizable stake in Taiwan Semiconductor (TSM). Taiwan Semi, also known as TSMC, is the world’s largest contract chipmaker. It’s a key chip supplier to Apple (AAPL), the No. 1 holding in Berkshire’s Dow stocks-heavy portfolio by market value and the No. 2 holding by number of shares.

Buffett’s Berkshire also picked up Louisiana Pacific (LPX), a manufacturer of building products and engineered wood components, as well as Jefferies Financial Group (JEF), a global investment banking and capital markets firm, both for the first time.

In Q3, Berkshire boosted its significant position in Paramount Global (PARA) by 16%. The Paramount+ streaming service is a small but growing rival to Netflix, Disney+ and Amazon Prime Video.

The conglomerate added to existing positions in Occidental Petroleum (OXY) and Chevron (CVX), according to Berkshire’s latest quarterly 13F filing, published on Nov 14. The company has steadily raised its energy bet this year, including in Q3.

Energy stocks soared along with oil prices soared following the Feb. 24 Russian invasion of Ukraine, which disrupted global oil and gas supplies. Several top energy stocks can be found on the IBD 50 list of top growth stocks and IBD Leaderboard.

In Q3, Berkshire kept many of its biggest and longest-held positions steady. Besides Apple, those include Bank of America (BAC) and Kraft Heinz (KHC), as well as Coca-Cola (KO) and American Express (AXP).

Buffett has held AAPL stock since Q1 2016 and KO stock since Q1 2001, for example.

The Berkshire chief has earned a reputation as a buy-and-hold investor, holding stocks for years or even decades. After news of Berkshire’s Taiwan Semi purchase broke Nov. 14, one analyst said TSM stock is “as high quality as it gets and defines ‘long-term buy and hold.'”

Top Warren Buffett Stocks By Size

At the end of September, these were the top 10 Warren Buffett stocks by number of shares:

Bank of America (BAC), 1.01 billion
Apple (AAPL), 894.8 million
Coca-Cola (KO), 400 million
Kraft Heinz (KHC), 325.6 million
Occidental Petroleum (OXY), 194.4 million
Chevron (CVX), 165.4 million
American Express (AXP), 151.6 million
Nu Holdings (NU), 107.1 million
HP (HPQ), 104.5 million
Paramount Global (PARA), 91.2 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.

In 2022, Berkshire Hathaway dumped AbbVie (ABBV), Bristol Myers Squibb (BMY) and Royalty Pharma (RPRX), not long after buying them for the first time. In 2021, 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 2021, the widely followed Berkshire Hathaway portfolio posted a 20.1% compound annual gain, nearly 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, worth a whopping $123.66 billion at the end of September.

Apple stock makes up nearly 41% 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 appearing on that Buffett screen can sometimes also be found on the IBD 50 list of top growth stocks.

YOU MAY ALSO LIKE:

Berkshire Hathaway Bought 3 New Stocks In Q3, Sold These Others

Is The Ultimate Warren Buffett Stock A Buy Right Now?

Warren Buffett Stocks: Screen Stocks Based On The Warren Buffett Investment Strategy

Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists