Among Buffett's Top 7 Holdings, Only AAPL Outpaces S&P 500

Berkshire Hathaway $Berkshire Hathaway(BRK.B)$ $Berkshire Hathaway(BRK.A)$ 's top seven holdings are $Apple(AAPL)$ $Bank of America(BAC)$ $American Express(AXP)$ $Coca-Cola(KO)$ $Chevron(CVX)$ $Occidental(OXY)$ $The Kraft Heinz Company(KHC)$.

Berkshire's seven largest holdings all account for at least 2% of the fund's total holdings, giving them a combined weighting of about 81%. Of those, only one has substantially outperformed the market over the past five years.

Over the past five years, while the $S&P 500(.SPX)$ did a decent 86% run, Apple skyrocketed over 330%, leaving the index in the dust. American Express did well too, almost matching the S&P with an 89.8% gain, but let's be real, that's just keeping up. The other five? Not even close to 40%!

Now, Apple's the only tech kid on the block, and Buffett's got a serious crush on it. He's called it maybe the best company on the planet, and he's not wrong. Those loyal fans, those insane profit margins – it's a keeper for the long haul.

But here's the twist: Berkshire's portfolio isn't all Buffett's doing. Other managers play a part too. Like, $Microsoft(MSFT)$ fits Buffett's mold perfectly, but he skipped it. Why? Because he's BFFs with Bill Gates, and that's just awkward.

So, trying to copy Buffett or Berkshire to a T? Not the smartest move. First, you'll struggle with the lag time in their 13f filings – you'll be chasing shadows. And second, do you really want to limit yourself? By investing in growth stocks or the latest AI darlings that Buffett might not touch, you could be raking in way more dough.

Buffett sticks to the blue chips, avoiding complexity. But hey, if you do the same, you might miss out on the next big thing.

In a nutshell, don't be a Buffett clone – find your own groove, your own investment jam.

# Mag 7: Would You Choose Stocks or ETFs?

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  • LEESIMON
    ·07-06
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