Warren Buffett's Berkshire Hathaway: A Closer Look at its Top 10 US Stock Holdings

 

INTRODUCTION:

Warren Buffett's conglomerate, Berkshire Hathaway, recently made significant changes to its US stock portfolio in the first quarter of the year. Despite selling its stakes in prominent US banks like BNY Mellon and US Bancorp, Berkshire Hathaway made notable additions, including a $1 billion stake in Capital One Financial. With these changes, let's delve into Berkshire Hathaway's top 10 holdings of US stocks as of March 31, 2023, shedding light on the conglomerate's investment strategy.

1. Apple (AAPL)

Ticker: AAPL

Position: $151.0 billion

Percent of portfolio: 46.4%

Berkshire Hathaway's largest holding remains Apple, representing an impressive 46.4% of its entire portfolio. Buffett's continued confidence in Apple reflects the tech giant's strong financial performance and market position.

2. Bank of America (BAC)

Ticker: BAC

Position: $29.5 billion

Percent of portfolio: 9.1%

Berkshire Hathaway maintains a substantial stake in Bank of America, solidifying its commitment to the financial sector. Despite the divestment of other bank stocks, this investment signifies Buffett's confidence in Bank of America's long-term prospects.

3. American Express (AXP)

Ticker: AXP

Position: $25.0 billion

Percent of portfolio: 7.7%

Buffett's long-standing investment in American Express demonstrates his trust in the company's business model and ability to generate stable earnings. Berkshire Hathaway continues to maintain a significant position in the credit card giant.

4. The Coca-Cola Company (KO)

Ticker: KO

Position: $24.8 billion

Percent of portfolio: 7.6%

Berkshire Hathaway's holdings include the iconic beverage company Coca-Cola, reflecting Buffett's affinity for long-established consumer brands. The conglomerate's sizeable investment signifies his belief in the company's enduring global presence.

5. Chevron (CVX)

Ticker: CVX

Position: $21.6 billion

Percent of portfolio: 6.7%

Buffett's investment in Chevron highlights Berkshire Hathaway's interest in the energy sector. Chevron, as one of the largest integrated energy companies, offers long-term growth potential and aligns with Buffett's investment philosophy.

6. Occidental Petroleum (OXY)

Ticker: OXY

Position: $13.2 billion

Percent of portfolio: 4.1%

Berkshire Hathaway increased its stake in Occidental Petroleum, emphasizing Buffett's continued confidence in the oil and gas industry. The investment aligns with his preference for undervalued assets and long-term value creation.

7. The Kraft Heinz Company (KHC)

Ticker: KHC

Position: $12.6 billion

Percent of portfolio: 3.9%

Berkshire Hathaway retains a significant position in The Kraft Heinz Company, showcasing Buffett's interest in the consumer packaged goods sector. The conglomerate's investment underscores its commitment to established brands and stable cash flows.

8. Moody's Corp. (MCO)

Ticker: MCO

Position: $7.5 billion

Percent of portfolio: 2.3%

Buffett's stake in Moody's Corp. reflects Berkshire Hathaway's focus on financial services and the importance of credit ratings. Moody's reputation and industry position make it an attractive long-term investment for the conglomerate.

9. Activision Blizzard (ATVI)

Ticker: ATVI

Position: $4.2 billion

Percent of portfolio: 1.3%

Berkshire Hathaway's investment in Activision Blizzard showcases its interest in the technology and entertainment industry. Activision Blizzard is a leading video game publisher known for popular titles such as Call of Duty, World of Warcraft, and Overwatch. Buffett's investment in this sector highlights his recognition of the growing influence and profitability of the gaming industry.

10. HP Inc. (HPQ)

Ticker: HPQ

Position: $3.5 billion

Percent of portfolio: 1.1%

Rounding out Berkshire Hathaway's top 10 holdings is HP Inc., a renowned technology company specializing in personal computers and printers. Berkshire Hathaway's investment in HP Inc. reflects its confidence in the company's ability to adapt to evolving technological trends and maintain a strong market position.

Conclusion:

Warren Buffett's Berkshire Hathaway has made notable changes to its US stock portfolio, showcasing its dynamic investment strategy. While divesting from US bank stocks like BNY Mellon and US Bancorp, the conglomerate has increased its holdings in companies such as Capital One Financial and Occidental Petroleum. Apple continues to dominate Berkshire Hathaway's portfolio, followed by significant investments in Bank of America, American Express, and The Coca-Cola Company.

Buffett's concentration in these top 10 holdings, which account for 90.2% of the entire portfolio, exemplifies his belief in the power of focused investments. Each stock represents different sectors, including technology, finance, consumer goods, and energy, allowing Berkshire Hathaway to diversify its exposure while maintaining its core investment philosophy.

As the financial landscape evolves, Warren Buffett's Berkshire Hathaway remains a key player in the market, demonstrating its ability to identify and invest in companies with enduring value and growth potential. While these holdings are based on the March 31, 2023, filing, it will be intriguing to observe how Berkshire Hathaway's portfolio evolves in the coming quarters, reflecting the conglomerate's unwavering commitment to long-term wealth creation.