Warren Buffett's Investment Portfolio: Key Insights and Lessons

13 Feb, 2023

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Warren Buffett's Investment Portfolio
Explore Warren Buffett's portfolio and learn how he became the world's sixth richest person. Follow his buy-and-hold investment strategy and discover the power of patience, discipline, and wise investments.

Introduction

With a net worth of over $100 billion, Warren Buffett, the sixth wealthiest person today—also known as the "Oracle of Omaha”—is a household name in the world of investments.

However, his success story is not one of overnight riches but a product of discipline, systematic approaches, and years of patience. Buffett began investing at the young age of 11 and has been unstoppable ever since.

Known for picking high-quality companies and holding them long-term, his portfolio, managed through his holding company Berkshire Hathaway Inc., includes stakes in some of the biggest global businesses, such as Apple Inc., Coca-Cola, and Bank of America Corporation. Berkshire Hathaway has held these investments for over a decade.

Buffett's portfolio is worth studying whether you are just starting your financial journey or are a seasoned investor. His investments and acquisitions are closely monitored as an indicator of the market's state, and he serves as a shining example of the power of patience, discipline, and wise investments.

Warren Buffett's Investment Portfolio

The SEC requires Berkshire Hathaway to quarterly reveal its portfolio to investors worldwide, providing insight into Buffett's investments.

Here are the top 10 stocks held by Warren Buffett through Berkshire Hathaway Inc. (As per November 2022 filing):

Company Name

Market value as of 30 September 2022 (in Billion dollars)

Market value as of 30 September 2022

Apple (AAPL)

123.66

894,802,319.00

Bank of America (BAC)

30.51

1,010,100,606.00

Chevron (CVX)

23.76

161,440,149.00

Coca-Cola (KO)

22.41

400,000,000.00

American Express (AXP)

20.45

151,610,700.00

Occidental Petroleum (OXY)

11.94

194,351,650.00

Kraft Heinz (KHC)

10.86

325,634,818.00

Moody's (MCO)

6.00

24,669,778.00

Activision Blizzard (ATVI)

4.47

60,141,866.00

Taiwan Semiconductor ( TSM)

4.12

60,060,880.00

Source: buffett.online

Note: All figures above are only temporary as share prices (and consequently, shareholding values) keep changing

Changes in Buffett's Portfolio

Buffett's investment strategy is based on the buy-and-hold approach. This is how he builds his impressive portfolio. However, due to market demands, Buffett has to realign his portfolio to keep in line with his financial goals.

Recently, Berkshire Hathaway made significant changes to its portfolio. In the last quarter, the company reduced its positions in the US Bank, Bank of New York Mellon, and Activision Blizzard. Additionally, it exited its position in the real estate investment trust (REIT) Store Capital.

On the other hand, several new additions have also been made to the portfolio. One of the most notable purchases was Taiwan Semi (TSM), a global leader in semiconductor manufacturing. Buffett acquired 60,060,880 ADRs in Q3, building a position worth over $4 billion.

During the same quarter, Berkshire Hathaway opened positions in Louisiana-Pacific (LPX) and Jefferies Financial Group (JEF). Furthermore, it increased its stake in companies such as Occidental Petroleum and Paramount Global.

Diversification Vs Concentration: Buffett's Strategy

At the end of the September quarter of 2022, Berkshire Hathaway's stock portfolio had a market value of approximately $296 billion, consisting of roughly 50 stocks.

Still, surprisingly, 80% of Buffett's portfolio is invested in only 7 stocks. One particular stock, Apple Inc., comprises more than 40% of Berkshire's portfolio.

Top 7 holdings account for 80% of Buffett's Portfolio (As of Sept 2022)

Company Name

Holding %

Apple (AAPL)

41.76%

Bank of America (BAC)

10.30%

Chevron (CVX)

8.02%

Coca-Cola (KO)

7.57%

American Express (AXP)

6.91%

Occidental Petroleum (OXY)

4.03%

Kraft Heinz (KHC)

3.67%

Source: buffett.online

Note: All figures above are only temporary as share prices (and consequently, shareholding values) keep changing.

Buffett emphasises the importance of risk management but doesn't believe in diversification. In his words, “diversification is protection against ignorance”. Instead, he suggests focusing on a few quality businesses and researching them thoroughly before investing.

Final Words

Warren Buffett's portfolio is a valuable resource for anyone looking to invest in the stock market and build a strong portfolio. However, before you begin, it's essential to research and understand the market.

If you're ready to take the next step and invest, don't forget to open a Demat account. With AngleOne, you can open a Demat account in just a few minutes. Don't wait, start investing today!

 

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