The 5 favorite stocks of “Oracle of Omaha”: in which companies and with which strategy Warren Buffett invests

What are veteran billionaire Warren Buffett’s favorite stocks? Its conglomerate Berkshire Hathaway held $ 108 billion in Apple shares as of March 31, according to regulatory filings. That stake represented 40% of its portfolio value, Business Insider said.

As, Berkshire’s increased stake in Bank of America was worth $ 39 billion, or 14% of the portfolio. Next comes its stake in American Express ($ 21 billion, or 7.9% of the total), followed by Coca-Cola ($ 21 billion, or 7.8%) and Kraft Heinz ($ 13 billion), or 4.8%).

“Wow, he’s focused,” he told Business Insider. Paul Lountzis, traditional shareholder of Berkshire and chairman of Lountzis Asset Management. “But that has always been his way of doing things,” he added.

Buffett has repeatedly preached the power of a concentrated portfolio and warned investors not to spread their bets too much. “Diversification is a protection against ignorance ”, he said at Berkshire’s annual shareholders meeting in 1996, adding that “it doesn’t make sense to anyone who knows what they’re doing.”

Buffett said if anyone could analyze and evaluate trades, it would be “crazy” for them to own dozens of stocks and put money into their 35th favorite company instead of their top choice. Indeed, diversifying to this point would likely hurt your bottom line and increase your risk, he said in his 1993 letter to shareholders.

Berkshire’s top five holdings accounted for 74% of its portfolio value at the end of December. That proportion rose to 75% in the last quarter, after the company reduced its holdings in Wells Fargo and Chevron, reduced its pharmaceutical and financial bets and abandoned a few additional positions.

Buffett could concentrate his portfolio even more in the coming months. “He’s making really big commitments again to the values ​​he loves most,” Lountzis told Insider.

The story behind the myth

Billionaire Buffet, born August 30, 1930 in Omaha, Nebraska, earned the nickname “Oracle of Omaha” for his business acumen. Coming from a middle-class family, he is a highly respected executive with a very accessible personality.

His frugal lifestyle made him a very popular figure in the United States. For decades he ran his business with his partner and vice chairman of the board Charlie munger, who is 97 years old today.

In fifty years, Buffet, who has three children, has transformed Berkshire Hathaway into a conglomerate of more than 640,000 million dollars, famous for its investments in blue chip stocks. Buffett has pledged to donate most of his fortune to charity, primarily his friend’s foundation. Bill Gates; This promise was followed by other American millionaires.

Earlier this month, Buffett announced that Greg Abel He will succeed him at the head of the powerful investment group Berkshire Hathaway, putting an end to months of speculation. “Executives agree that if something happens to me tonight, Greg will take the reins tomorrow morning,” Buffett, whose fortune of $ 103.7 billion is the sixth in the world, told CNBC. Forbes.

Buffet also reported that Ajit Jain, Head of the group’s Insurance division, he will replace Abel in the event of disability. “They are two great people,” said Buffet, 90, who ended the suspense over his possible replacement as head of Berkshire Hathaway, a holding company with interests in some 60 companies ranging from insurer Geico to manufacturer of Duracell batteries.

Canadian Abel, 59, joined the group’s energy sector in 1992 and then oversaw all of its other relevant areas except insurance.

An Indian-American, Jain, 69, joined Berkshire’s insurance division in 1986, which he currently heads.

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