Warren Buffett is widely considered to be among the most successful investors in history. Buffett has earned a devoted following among investors, known as the “Oracle of Omaha” thanks to his long track record of picking winners.
Holdings in the company’s equity portfolio tend to perform very well, and many investors track changes in the portfolio as a guide for their own investing choices.
The following 10 stocks are ranked by the percentage share of Berkshire Hathaway’s overall equity portfolio. All figures are sourced from the company’s most recent 13F filing with the Securities and Exchange Commission (SEC) and additional research from major financial media.
- The Best Warren Buffett Stocks
- Apple Inc. (AAPL)
- Bank of America Corp. (BAC)
- American Express Co. (AXP)
- Coca-Cola Co. (KO)
- Chevron Corp. (CVX)
- Occidental Petroleum Corporation (OXY)
- Kraft Heinz Co. (KHC)
- Moody’s Corporation (MCO)
- Mitsubishi Corp. (MTSUY)
- Mitsui & Co. (MITSY)
- How To Invest in Warren Buffett Stocks
- Why Do Investors Love Warren Buffett?
- About Berkshire Hathaway
- Frequently Asked Questions (FAQs)
- Next Up in Investing
The Best Warren Buffett Stocks
How To Invest in Warren Buffett Stocks
Investing in Warren Buffett’s favorite stocks is no different from investing in any other stock you may wish to own.
The first thing you’ll want to do is your own due diligence. Make sure not only that you think the stock is a good investment in its own right, but also that it’s the right fit for your portfolio. Everybody has their own financial needs based on their goals, where they are in life right now and where they want to be in the future.
Simply because Warren Buffett holds a stock does not mean that it is the right investment to hold in your portfolio. If you have questions about which stocks are right for you, it’s always recommended to consult a financial advisor about your investing decisions.
Once you have decided which Warren Buffett stocks you want to own, you’ll have to open a brokerage account, fund that account and then put in the purchase order to buy the stock. In many instances, the order will be completed immediately.
Why Do Investors Love Warren Buffett?
Warren Buffett began his career as an investor when he was just 11 years old, and his strategy is marked by equal parts patience and appreciation of the value of long-term investing.
Buffett is the CEO of Berkshire Hathaway (BRK.B), a holding company that owns a highly diversified portfolio of different businesses and stocks.
Buffett took over Berkshire Hathaway in the 1960s and turned it into a holding company with subsidiaries in various industries, including insurance, rail freight and energy.
Berkshire Hathaway has built up positions in a wide range of public companies, from technology firms to financial institutions. Its equity portfolio includes sizable stakes in several leading blue-chip stocks.
Regarding stock performance, Berkshire Hathaway has a legacy of strong returns. Berkshire Hathaway’s Class B (BRK-B) had a 60% five-year return and a 229% 10-year return.
To put those numbers in perspective, consider that the SPDR S&P 500 (SPY), an exchange-traded fund that tracks the performance of the S&P 500 index, had a 57% five-year return, and a 180% 10-year return.
While you may want to emulate Buffett’s success, remember that he is an advocate for index funds. But if you want to institute his investment strategy in your own portfolio, focus on investing in businesses rather than the latest hot stock. And plan on holding your portfolio for the long-term.
About Berkshire Hathaway
With a market capitalization over $600 billion, Berkshire is the largest financial stock in the U.S. market and among the ten largest U.S. public companies. Berkshire owns and operates a diverse range of portfolio companies, including familiar names like Geico, Duracell, Dairy Queen, Fruit of the Loom and Clayton Homes.
Berkshire Hathaway’s roots date back to the Berkshire Cotton Manufacturing Company of Adams, Mass., established in 1889, and the Hathaway Manufacturing Company, founded in 1888 in New Bedford, Mass.
Buffett bought the failing textile company in 1964, and then began using it as a platform to invest in other companies and industries. The core of Berkshire’s business has long been insurance, which provides steady cash flow to invest in other holdings.
What Companies Does Berkshire Hathaway Own?
In addition to owning stock in more than 50 different publicly traded companies, Berkshire Hathaway owns majority stakes in a number of private companies as well. Some of these companies have been acquired in their entirety by Buffett and are now run as wholly owned subsidiaries of Berkshire Hathaway.
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Frequently Asked Questions (FAQs)
How does Warren Buffett pick stocks?
Warren Buffett is often considered a value investor. Value investing is based on the concept of intrinsic value. Intrinsic value is a theory for calculating what a stock might actually be worth. Buffett purchases what he believes are undervalued stocks and holds them for the long-term through many market fluctuations.
How do you calculate the intrinsic value of a stock?
There is more than one way to calculate a stock’s intrinsic value. Buffett is known to use the discounted cash flow model. This is a fairly complex method for estimating future free cash flows, which Buffett sees as perhaps a company’s most valuable asset.
How many stocks does Warren Buffett own?
As chairman and CEO of Berkshire Hathaway, Warren Buffett owns more than 50 stocks in the holding company’s portfolio.