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Сергей Мамаев

Warren Buffett's 5 Largest Stocks: Berkshire Hathaway Portfolio

ПThe Berkshire Hathaway bag is a diverse set of blue chips. Take a look at all of Warren Buffett's stocks, Berkshire Hathaway's portfolio, like so many others, went through a true rollercoaster ride in 2020. Over the course of the year, Buffett cut ten shares of stock. At the beginning of 2020, he owned several airlines, now he does not own them. Banks were Buffett's trump card in early 2020, but Berkshire spent a full year selling them.

Let's look at 5 stocks of the largest stocks of Warren Buffett himself.


Apple

Shares: 887 135 554

Cost of Ownership: $ 117,714,016,000

Portfolio share: 43.62%

Berkshire Hathaway sold 57.2 million shares, or 6% of its stake in AAPL, in the last quarter of 2020. But that probably has little to do with a lack of faith in the iPhone maker.

Even after selling its shares in the fourth quarter, the tech giant still represents 44% of Berkshire Hathaway's equity portfolio. And Berkshire remains Apple's third-largest investor with 900 million shares, representing about 5.1% of all shares outstanding. Only Vanguard and BlackRock - the giants of the passively managed ETF universe - hold more Apple stock.

Most likely, Buffett was simply fixing profits on extremely fruitful investments. AAPL shares have returned 432% since the end of the first quarter of 2016 when Berkshire began its stake. This is about four times better than the market as a whole.


Bank of America

Ownership: 1 010 100 606 pieces

Cost of Ownership: $ 30,616,150,000

Portfolio share: 11.35%

Warren Buffett sold 2.2 million shares of Bank of America in the fourth quarter of 2019, but that means a 0.2% cut. And while he slashed various bank holdings heavily in 2020, he actually boosted Berkshire's already large positions in the third quarter by buying over 85 million shares. In addition, Berkshire is the largest shareholder in Bank of America.


Coca-Cola

Ownership: 400,000,000

Cost of ownership: $ 21,935,999,000

Portfolio share: 8.13%

Buffett, a fan of Coca-Cola Cherry, began investing in Coca-Cola stocks shortly after the 1987 stock market crash. In a 1988 letter to Berkshire shareholders, Buffett said he hoped to hold onto the stock "for a long time."

Three decades later, he confirmed his word. Berkshire is Coca-Cola's largest shareholder with a 9.3% stake.

Coca-Cola briefly appeared as a component of the Dow Jones Industrial Average in the 1930s. The shares were re-added to the Dow Jones in 1987 and have remained unchanged members ever since.

While Coca-Cola's stock performance was not impressive, its 119% total return over the past decade is well below the 264% return. But it's worth noting that the beverage manufacturer has increased its dividend annually for 58 years.


American Express

Shares: 151 610 700

Cost of Ownership: $ 18,331,249,000

Portfolio share: 6.79%

American Express is still one of Warren Buffett's favorite investments.

Buffett likes to say that his preferred tenure is "forever," and American Express is one prime example of this. Berkshire acquired its original stake in the credit card company in 1963 when the struggling American Express was in dire need of capital. Buffett agreed, receiving favorable terms on his investment. He played the role of the white knight many times over the years, including during the 2008 financial crisis, as a vehicle for gaining shares in good companies at discounted prices.

No one would be surprised if Buffett cut his position at American Express somewhere during 2020. After all, Berkshire has been dumping financial stocks throughout the year, and it even cut its payment system rates in the second quarter.

Berkshire Hathaway, which owns 18.8% of the issued shares of American Express, is by far the largest shareholder in the company.

Buffett praised the strength of the American Express brand at Berkshire's 2019 AGM. “It's a fantastic story and I'm glad we own 18% of it,” he said.


Kraft Heinz

Shares: 325 634 818

Cost of Ownership: $ 11,286,503,000

Portfolio share: 4.18%

Kraft Heinz finally gave Warren Buffet a reason to smile with a 39% return over the past year, more than doubling the market size.

Buffett was one of the driving forces behind the 2015 merger of packaged food giant Kraft and ketchup supplier Heinz to create Kraft Heinz. This is Berkshire's sixth-largest equity investment with a market value of $ 8.1 billion.

However, Berkshire Hathaway recorded a $ 3 billion in non-cash loss from impairment of intangible assets in 2018, “almost entirely attributable to our holding in Kraft Heinz,” Buffett wrote in his letter to shareholders in 2019. In early 2019, Kraft Heinz reduced the value of its brands by nearly $ 15 billion. In 2020, Fitch downgraded the company's debt rating to junk.

Kraft has fared better since then, surpassing earnings expectations in both the third and fourth quarter. This has helped the company achieve results in the short term, but it has yet to catch up to shed its "bad" status in Berkshire Hathaway's stock portfolio.

“I was wrong (about Kraft Heinz),” Buffett admitted flatly on CNBC in 2019. Buffett says he overpaid, and it's hard to disagree. Even after taking dividends into account, Kraft stock has lost almost 37% of its value based on total returns since September 30, 2015.