Buffett’s Bullseye: Meet The 4 Stocks That Make Up Nearly 75% Of His Portfolio

Legendary investor Warren Buffett has long preached the importance of passive investing in large-cap stocks.

“Beware the investment activity that produces applause; the great moves are usually greeted by yawns,” said Buffett, who also is a big fan of dividend-yielding stocks, which he calls the secret sauce to Berkshire Hathaway Inc.’s success.

Nearly 75% of Buffett’s portfolio is invested in just five stocks. Take a closer look.


Buffett has been a long-time supporter of Apple Inc. (NASDAQ:AAPL), which he calls a “better business than any we own.” Approximately 50.04% of his portfolio is invested in Apple, which was valued at over $155 billion as of Sept. 30.

Despite uncertainty in the market, demand for Apple’s products remains strong, with iPhone sales hitting a record high in the fiscal fourth quarter that ended Sept. 30. Apple shares have risen 49% year-to-date, making it one of the best-performing tech stocks this year.

“We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon-neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030,” Apple CEO Tim Cook said.

Wedbush has an Overweight rating on Apple stock with a price target of $250, indicating a potential upside of nearly 30%. Morgan Stanley also has an Overweight rating on the tech behemoth with a price target of $220, indicating a potential upside of over 13%.

Don’t Miss:


Buffett generated nearly $704 million in dividends from his investment in the Coca-Cola Co. (NYSE:KO). His initial investment of $1.3 billion in Coca-Cola stock has multiplied to $25 billion, according to Berkshire Hathaway’s 2022 annual shareholder letter.

Buffett owns 400 million shares of Coca-Cola through Berkshire Hathaway, which accounts for 7.15% of his total portfolio.

Coca-Cola currently pays $1.84 in dividends annually, yielding nearly 3.2% on the current stock price. The Dividend Aristocrat stock has a dividend payout history, as it has hiked its annual dividend payouts for 61 consecutive years.

Despite the volatile market backdrop, Coca-Cola is expected to maintain stable growth momentum, as the company’s revenue is expected to rise by 4.1% in the quarter ending December. The consensus earnings per share (EPS) estimate of $0.48 for the quarter ending in December indicates a 6.7% year-over-year increase.

Bank of America

Berkshire Hathaway owns approximately 1.03 billion shares of Bank of America Corp. (NYSE:BAC), accounting for over 9% of Buffett’s investment portfolio. Shares of Bank of America rose by over 20% in the past three months.

Bank of America has benefitted from the decades-high interest rates, as the bank’s total net income rose by 10% year over year to $7.8 billion in the fiscal third quarter that ended Sept. 30. Its EPS for the quarter amounted to $0.90, indicating an 11% rise from the same period last year.

Bank of America also raised its dividend payouts by 9% back in July, bringing its total annual dividends to $0.96 and yielding 2.89% on the current price.

Odeon Capital Group upgraded its outlook on Bank of America stock from Hold to Buy on Dec. 13 with a price target of $37.94, indicating an over 13% potential upside.

American Express

American Express Co. (NYSE:AXP) is Buffett’s third-largest holding, accounting for 7.22% of Berkshire Hathaway’s stock holdings. With U.S. credit card debt topping $1 trillion in the second quarter, American Express reported an improvement in its financials. Spending by millennial and Gen Z American Express customers rose by 18% year over year in the fiscal third quarter, which ended Sept. 30.

American Express reported record third-quarter revenue for the sixth consecutive quarter, up 13% from the same period last year. American Express’s EPS increased by 34% year over year to $3.30 for the third quarter.

The consensus revenue estimate of $16.01 billion for the quarter ending in December indicates a 13% year-over-year increase. Wall Street expects the American Express EPS to amount to $2.65 for the quarter, indicating a 13% year-over-year increase.

Read Next:

“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article Buffett’s Bullseye: Meet The 4 Stocks That Make Up Nearly 75% Of His Portfolio originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email [email protected] Follow our WhatsApp verified Channel210520-twitter-verified-cs-70cdee.jpg (1500×750)

Support Independent Journalism with a donation (Paypal, BTC, USDT, ETH)