To The Moon

79% of Warren Buffett's $338 Billion Portfolio Is Invested in Just 6 Stocks

Warren Buffett has vastly outperformed the S&P 500 since becoming Berkshire Hathaway CEO in 1965.

Because of Buffett's success, investors closely monitor Berkshire's quarterly 13F filings.

Despite owning stakes in 49 securities, 79% of the Oracle of Omaha's investment portfolio is tied up in only a half-dozen stocks.

The Oracle of Omaha tends to bet big on the companies he believes in.

Few, if any, investors have a larger following than Berkshire Hathaway (BRK.A 0.35%) (BRK.B 0.17%) CEO Warren Buffett. That's because the Oracle of Omaha, as he's now known, has vastly outperformed the benchmark S&P 500 since he became CEO in 1965. Through the end of 2021, Berkshire Hathaway's Class A shares (BRK.A) delivered an aggregate return that was 120 times greater than that of the S&P 500, including dividends paid, since Buffett took over.

With the exception of Berkshire Hathaway's annual shareholder meeting, the company's quarterly Form 13F filing is, arguably, the most anticipated event for shareholders and investing enthusiasts. A 13F allows investors to see exactly what Buffett and his investing team bought, sold, and held in the most recent quarter.

On Valentine's Day (Feb. 14), Berkshire Hathaway's 13F showed investors precisely which stocks the Oracle of Omaha "loves." But despite holding stakes in 49 securities, Buffett and his team have highly concentrated the company's investment portfolio in just a few companies. A whopping 79% of Warren Buffett's $338 billion portfolio is invested in just six stocks.

1. Apple: 41.4% of invested assets

Although Buffett sent a subtle but terrifying signal to investors by being a net seller of equities during the fourth quarter, one stock Buffett continues to add to is tech stock Apple (AAPL -0.34%), which comprises close to $140 billion of Berkshire Hathaway's $338 billion investment portfolio.

2. Bank of America: 10.8% of invested assets

If there's an industry the Oracle of Omaha loves to put Berkshire Hathaway's money to work in more than any others, it tends to be banking. At the moment, Bank of America (BAC 0.26%) is Buffett's undisputed favorite bank stock, as evidenced by the 10.8% weighting in Berkshire's investment portfolio.

3. Chevron: 8.1% of invested assets

Over the past year, Buffett and his cohorts have become big fans of the energy sector. That's why you've seen energy stock Chevron (CVX -1.26%) grow into Berkshire Hathaway's third-largest position.

4. American Express: 8% of invested assets

This year marks the 30th consecutive year credit-services provider American Express (AXP 0.40%) is a Berkshire Hathaway holding. The patience of Buffett and his investing lieutenants (Todd Combs and Ted Weschler) to allow this position to play out has resulted in an unrealized gain of approximately $25.5 billion, not counting dividends.

5. Coca-Cola: 7.1% of invested assets

The only stock Berkshire Hathaway has been continuously holding longer than AmEx is beverage giant Coca-Cola (KO -0.52%). The Oracle of Omaha has been a shareholder of Coca-Cola since 1988, and is currently benefiting from a dividend yield, relative to Berkshire's cost basis, of 56.7%. Coke's dividend alone is more than doubling Buffett's initial investment every two years.

6. Kraft Heinz: 3.9% of invested assets

The sixth and final holding that concentrates a little over 79% of Berkshire Hathaway's invested assets into just a half-dozen stocks is packaged foods, snacks, and condiments company Kraft Heinz (KHC -1.81%).

source: https://www.fool.com/investing/2023/02/24/79-warren-buffett-portfolio-invested-in-6-stocks/