A Breakdown Of Warren Buffett’s Portfolio

It would be hard to argue that Warren Buffett is not the greatest investor of all time. I think we can all agree that he is. And one of the great things about this is that Warren Buffett is still alive today with a portfolio bigger than ever. And because of financial regulations, he has to disclose his portfolio to the public, which means all of us investors get to look at how the greatest investor in mind is investing in this day and age.

Apple makes up forty seven point eight percent of the entire stock portfolio, and he owns nine hundred forty four point three million shares of the company altogether. That’s worth one hundred and nine billion dollars. That’s a lot of money. And one stock even on Buffett terms. Apple, I know you guys already know generally what the company does. We’ll show you a bit deeper, though. So the main thing that the company sells is obviously the iPhone, one of the most popular selling phones in all of history. That makes up 41 percent of their revenue. But they also sell the iMac and the iPad, which makes up 14 and ten point five percent of the revenue, respectively. Then, of course, you’ve got the slightly newer segment, which is the wearables and home accessories that makes up twelve point two percent. And lastly, you’ve got the services side to their business. So that’s things like iTunes, the App Store, Apple Music, apple pie and all of that. This makes up twenty two point five percent of revenue. So that gives you a bit of an idea of Apple, the company as a whole. Let’s take a quick look at the stock now. So this is one of the biggest companies in the world right now. It’s valued over two trillion dollars. That is big. The price of an individual stock, if you’re looking to buy, is one hundred twenty three dollars a share with earnings of three point twenty eight. The stock has rallied very nicely over the past couple of years. It’s gone from twenty dollars in 2016 to over five times the amount today. I think it’s a smart investment from Buffett. It’s hard to argue that it’s not. Apple has such a strong business model. People know it all around the world and they love their products. Let’s just say I don’t see Apple of all companies failing over the next three to five years. Moving on to his second largest position, that’s Bank of America, one of the biggest banks in America. It makes up ten point six percent of its entire stock portfolio, valued at over twenty four point three dollars billion. The ticker symbol for that stock, by the way, is BJC. So Bank of America, what do they do? They help with loans, banking services, investing in asset management and other financial related roles, a very complicated business. But Buffett knows them well. Price wise. They’re affordable to pretty much any investor unless you’re broke.

They sell for twenty nine dollars a share right now, and in return they generate earnings of two dollars a share. That gives them quite a low PE ratio and this market anyway, of just fourteen point three. Also, another nice thing about the stock is they pay a bit of a dividend, an annual yield of two point five percent, which is pretty decent. This is an interesting position for Buffett as a lot of you know, he’s been into banking stocks for a long time now. The price is obviously cheap, however, and these market conditions, the banking business model will be tested and time will tell if this is a smart investment to hold. This has got to be one of my favorite all time stocks, and it was actually Buffett who introduced me to its eight point six percent of Berkshire’s portfolio is in the company Coca-Cola. In my humble opinion, it’s one of the best drinks of all time. Buffet He owns exactly 400 million shares worth nineteen point seven billion dollars. That’s a lot of money. Again, a pattern that you’ll start to notice with a lot of Buffett’s main stocks as they operate. Simple business models, Coca-Cola, you don’t have to be Einstein to understand their model. They distribute drinks all around the world and they sell it at various outlets. Some of their billion dollar brands include Coke, obviously Fanta, Sprite, Schweppes, simply orange, smart water and a range of others. And one of the things that stands out about Coca-Cola stock is their dividend. They pay a dividend yield of three point one percent. And the great thing about this is they have increased it for 58 consecutive years, making it one of the safest dividend paying stocks. American Express is not a bank, but it’s a financial services company, quite old, founded in 1850. One of the patterns that you should notice while going through Buffett’s stocks is that he loves financial oriented companies. This particular one, American Express, makes up six point six percent of his portfolio over Berkshire Hathaway. He owns 151 million shares of them with the total value of fifteen point two billion dollars. Not too much to say on this company that obviously known for the charge card, credit card and traveler’s check businesses. The stock has had an interesting couple of years. Up until 2020, they were going great, up over 150 percent from the start of 2016. And then, of course, we had those rough economic times. The stock got hit hard, but has rebounded relatively nicely. Croft finds this is another company that has had tough times over the past couple of years, and when I say tough, I mean really tough, as I’ll soon show you. So it’s a big position, of course, for Buffa. He owns three hundred twenty five point six million shares, worth a total of nine point seven billion dollars. All in all, that’s four point three percent of his portfolio.

So Kraft Hine’s, it’s a food company. I’m sure you guys know that. It’s actually the third largest food and beverage company in North America with 25 a billion dollars in annual sales. You know, if we take a look, they’ve got some big name brands over here, Waties Kool Aid, Gelo, Philadelphia Golden Circle. And that’s no wonder they’ve sold 25 billion dollars worth of items. However, they have been struggling as a stock. At one point in time, they were selling for over ninety dollars a share. And since then they’ve gone down dramatically. And the reason for that is poor earnings. As you can see, they have lacked innovation with their products and the margins that they’re made have not been good. So price is down big. However, you do have some investors saying that this is an opportunity. They pay a really nice dividend right now. They’re going for a cheap price and the business model is fine. So that’s up to you to decide if it’s a buy or not. OK, these next two, we’re going to grow together, they’re both financial stocks, not the most interesting to talk about, if I’m honest with you. So Moody’s Corporation, that makes up three point one percent of the portfolio ticker symbol MCO and U.S. Bancorp ticker symbol USPI, that makes up two point one percent. So, again, with these banking stocks, it’s kind of like the double edged sword. Prices are very cheap relative to other stocks. However, their business model is going to be tested in these tough economic conditions. Risk reward, that’s, well, investing or comes down to. OK, coming in at the eighth largest position as Charter Communications Stock Charter is a cable operator and broadband services company in the United States, they provide video, Internet and voice services to approximately twenty six point two million residential and business customers. So a lot of people, the stock in terms of price adds up there. It sells for above six hundred and fifty dollars a share and has done really well for Buffa over the past couple of years, going up from two hundred sixty dollars in 2018. So the price that it is today, a very nice return at the moment and makes up one point four percent of the total portfolio with a position value of three point three billion dollars. OK, two more stocks to go now, guys. DaVita Health Care, Buffer’s ninth largest position, we’re starting to get into the very small amounts now, it makes up just one point four percent of Buffet’s entire portfolio. Berkshire owns 127 million shares of the stock worth three point one billion dollars. I think it’s a smart move from Buffett’s expose his portfolio to a bit of health care. Health care is a sector which does better than most and recessions and it does fine and pretty much all economic conditions. Why? Because people still need health care no matter what the economy is doing. The stock has done well for Buffett over the years. He bought it back in 2012 and since then it’s gone up a nice 150 percent. As of right now, the stock sells for just over 100 dollars a share with a reasonable PE ratio of sixteen point two. OK, this is the last talk that we’re going to go through and then I’m going to sum up his portfolio, Wells Fargo, you guys know Wells Fargo, that the bank fourth largest in the USA, actually, Berkshire, they own 127 million shares worth three billion dollars, making up one point three percent of the portfolio. As I said before, Buffet owns quite a lot of these financial related stocks. Around 26 percent of his portfolio is made up of financials, 51 percent is information technology. And that’s mainly Apple, 13 percent is consumer staples like Coca-Cola and Kraft Hine’s and four and four percent is consumer discretionary and health care stocks. So what have done here is I’ve showed you his 10 biggest stock positions.

These make up 87 percent of his entire portfolio. The rest of the stocks owned the other 13 percent of very small positions. Pretty much all of them are under one percent. And these include stocks like General Motors, Evvy, the pharmaceutical company Visa, Amazon, the e-commerce company Snowflake and a range of others. But the other thing I need to mention is he’s got a big cash pile on him as well. Over at Berkshire Hathaway, his investing firm, they have 147 billion dollars of cash on them, just waiting to be deployed. And my opinion is I think they’re waiting for stocks to get cheaper before they deploy that cash and make some big moves in the market. Either way, I think it’s such a privilege that we can see into the portfolio of one of the greatest investors of all time. And I hope you enjoyed the video.

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