Warren Buffett is undeniably the most famous and influential investor in modern history, based on his extraordinary performance record. Not surprisingly, the investment portfolio of Berkshire Hathaway Inc. (BRK.A), his longtime holding company, receives wide media attention and scrutiny, even though Buffett no longer makes every investment decision.
Buffet’s company has had unparalleled success: since 1965, the firm has had compound annualized gains of 19.8% vs. 10.2% for the S&P 500. However, his investment model has long been transparent, straightforward, and consistent. As Buffet put it in his Feb. 24, 2024, letter to Berkshire shareholders, “Berkshire benefits from an unusual constancy and clarity of purpose.” He invests in large, blue-chip companies with solid balance sheets and attractive valuations. “I can’t remember a period since March 11, 1942—the date of my first stock purchase—that I have not had a majority of my net worth in equities, U.S.-based equities,” he said in his 2024 letter. Buffett invests for the long term, but he’s never been afraid to make significant new investments or drop longtime holdings. Below, we dive into his biggest holdings and derive some lessons for other investors to take away.
Key Takeaways
- Berkshire Hathaway's portfolio's five largest positions are in Apple Inc. (AAPL), Bank of America Corp (BAC), American Express Company (AXP), The Coca-Cola Company (KO), and Chevron (CVX).
- Apple is Berkshire's largest holding, accounting for about 50% of its stock portfolio.
- The top five holdings account for about 80% of the portfolio.
According to its filings with the Securities and Exchange Commission, here are the top five stocks in Berkshire Hathaway's portfolio as of Dec. 31, 2023:
1. Apple
Apple Inc. is Berkshire Hathaway's largest stock holding by far. As of Dec. 31, 2023, Buffett's company held 905.6 million shares worth $174.3 billion, accounting for about 50% of its stock portfolio and 5.8% of Apple's outstanding shares.
Buffett's holdings in Apple used to be even bigger. In the fourth quarter of 2023, Berkshire Hathaway sold 10 million of its shares in the iPhone maker, representing about 1% of its stake in the company. This isn't the first time Berkshire has trimmed its massive position in the tech giant. In 2020, Berkshire sold off about $11 billion worth of the stock. Buffett later said that transaction was "probably a mistake."
Berkshire Hathaway acquired the bulk of its stake in Apple between 2016 and 2019 for just over $35 billion.
Warren Buffett said at the 2023 Berkshire Hathaway annual meeting, "Our criteria for Apple was different than the other businesses we own. It just happens to be a better business than any we own."
In the final three months of 2023, Berkshire Hathaway trimmed its position in Apple by about 1%. However, the tech giant is still the company's largest single holding by far.
2. Bank of America
Berkshire Hathaway's second-largest holding is Bank of America, with a stake valued at $34.8 billion as of Dec. 31, 2023, or about 10% of its portfolio. Berkshire Hathaway held 13.12% of the bank's outstanding shares as of Dec. 31, 2023.
Berkshire Hathaway acquired 700 million of the over 1 billion Bank of America shares it holds in 2022 for warrants Berkshire Hathaway received from a $5 billion investment in the bank's preferred stock in 2011.
3. American Express
Berkshire Hathaway's $28.4 billion stake in financial services provider American Express accounted for about 8% of its portfolio as of Dec. 31, 2023, or about 21% of all American Express shares.
The stake dates back to 1994 when Buffett acquired American Express stock in exchange for warrants from a $300 million preferred stock investment that returned 64% over three years. Berkshire Hathaway has significantly increased its American Express stake over the past decade.
4. Coca-Cola
Buffett famously consumes five 12-ounce servings of co*ke daily and once said he is "a quarter Coca-Cola" based on the drink's share of his caloric intake.
Berkshire Hathaway owns 400 million Coca-Cola Company shares worth $23.6 billion as of Dec. 31, 2023, representing about 6.8% of its stock portfolio. This accounts for about 9.3% of Coca-Cola's outstanding stock as of Dec. 31, 2023.
After Buffett began accumulating the position in 1988, his shareholder letter said he planned to hold it "for a long time." "In fact, when we own portions of outstanding businesses with outstanding managements, ourfavorite holding period is forever," Buffett wrote.
5. Chevron
In the last three months of 2023, Buffett's company added to its position in Chevron Corp., having already reduced its holding in the first half of that year. As of Dec. 31, 2023, Berkshire Hathaway holds more than 126 million shares in the oil giant, worth about 5.4% of its portfolio. Berkshire's stake amounted to 6.7% of Chevron's outstanding shares as of Dec. 31, 2023.
"Chevron is not an evil company in the least, and I have no compunction about owning Chevron," Buffett said at Berkshire Hathaway's 2021 shareholders meeting when asked about Chevron's role in climate change.
Buffett, who turned 93 in 2023, began his career in the early 1960s. As he aged, many investors and analysts grew concerned about the lack of a succession plan at Berkshire Hathaway. In his 2023 shareholder letter, he said that Abel "runs all non-insurance business operations for Berkshire – and in all respects is ready to be CEO of Berkshire tomorrow."
What Is the Rest of the Top 10?
After the top five listed above, Berkshire's next largest public company investments are the following:
- Occidental Petroleum Corp. (OXY), about 4.2%
- The Kraft Heinz Company (KHC), about 3.5%
- Moody's Corp. (MCO), about 2.8%
- DaVita Inc. (DVA), about 1.1%
- Citigroup Inc. (C), about 0.8%
In addition to its stakes in publicly listed companies, Berkshire Hathaway owns many subsidiaries, including GEICO Insurance, BNSF Railways, Duracell, and International Dairy Queen Inc., among others.
Will Berkshire Hathaway Buy Occidental Petroleum?
No, according to Warren Buffett at the 2023 annual meeting. “There’s speculation about us buying control, we’re not going to buy control. … We wouldn’t know what to do with it,” he said.
Which Railroad Does Warren Buffett Own?
BNSF Railways, formerly Burlington Northern Santa Fe, is a wholly-owned subsidiary of Buffett's Berkshire Hathaway.
Which Insurance Companies Does Warren Buffett Own?
Berkshire owns several insurance companies, including GEICO, Cypress Insurance, General Re, Berkshire Hathaway Re, National Fire & Marine Insurance Co., and National Indemnity Co.
What Is the Origin of Berkshire Hathaway's Name?
The Berkshire Hathaway name originated with the 1955 merger of Berkshire Fine Spinning Associates of Adams, Massachusetts, and the Hathaway Manufacturing Company of New Bedford, Massachusetts. Buffett began accumulating Berkshire Hathaway shares in 1962 and bought the company outright in 1964.
He had agreed to sell his stock to management, only to discover that the tender offer's price was below what he had been promised. "This made me mad," Buffett recalled. He bought Berkshire Hathaway's first insurance business in 1967 and closed the company's last textile mill in 1985.
The Bottom Line
Warren Buffett's investment advice is still very widely sought. That's why Berkshire Hathaway annual meetings are such well-attended events. His investment model is simple: buy blue chip stocks (dividends never hurt anyone) at reasonable valuations and hold them long-term. He also looks favorably at companies with strong management teams and solid balance sheets.
Buffett relies on trusted advisors to help make his investment decisions. One of his most trusted advisors was the late Charlie Munger.
