Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) owns more than $200 billion worth of common stock in one of the most closely watched portfolios in the entire world. And, there’s a good reason so many investors keep track of Berkshire’s stock holdings — it’s the investing vehicle of master investor Warren Buffett, the Oracle of Omaha.
The common stocks of more than 40 companies are in Berkshire’s portfolio, but there are major size differences among the positions. Some are worth well in excess of $10 billion, while others are relatively small at a few hundred million…
With that in mind, here are the 10 largest stock positions in Berkshire Hathaway’s portfolio, and why Warren Buffett and his team like each one.
|Company (Stock Symbol)||Shares Owned||Percent Ownership||Market Value of Position|
|Bank of America(NYSE:BAC)||896,167,600||9.3%||$26.7 billion|
|Wells Fargo(NYSE:WFC)||426,768,902||9.5%||$20.0 billion|
|American Express(NYSE: AXP)||151,610,700||18%||$16.8 billion|
|Kraft Heinz(NASDAQ:KHC)||325,634,818||26.7%||$10.8 billion|
|U.S. Bancorp(NYSE: USB)||129,308,831||8.1%||$6.4 billion|
|JPMorgan Chase(NYSE: JPM)||50,116,394||1.6%||$5.5 billion|
|Moody’s Corporation (NYSE: MCO)||24,669,778||13.1%||$4.6 billion|
|Bank of New York Mellon (NYSE: BK)||80,937,250||8.5%||$4.2 billion|
Apple has quickly evolved to be Berkshire’s top holding, and by a wide margin. The position started in 2016 when one of Buffett’s investment managers decided to invest about $1 billion in the tech giant, and Buffett has built up quite a large position in the few years since. Buffett loves the “stickiness” of Apple’s ecosystem and has said that the company’s products provide tremendous value to customers.
2. Bank of America
Berkshire’s massive Bank of America stake originated in the wake of the financial crisis. Buffett made a particularly savvy investment in $5 billion worth of Bank of America preferred stock, but for no extra cost, also received warrants to buy 700 million shares for just $7.14 each. Well, the warrants were exercised after the bank’s 2017 dividend increase, and since Bank of America trades for roughly $30 per share currently, it’s fair to say that this was an extremely successful investment.
3. Wells Fargo
Despite the scandal-plagued nature of the past few years, Warren Buffett has stood by Wells Fargo, one of his oldest bank investments. Not only has Buffett publicly supported the bank’s managers, but Berkshire has only sold as many Wells Fargo shares as necessary to stay under a 10% ownership stake (important for regulatory reasons). The bank’s recent results and the departure of CEO Tim Sloan may signal that things are finally starting to turn around for the bank, which has been one of the sector’s worst performers.
The soft drink giant has been in Buffett’s portfolio for nearly…
Continue reading at THE MOTLEY FOOL