Explore The Portfolio Of "Investment Genius" - Warren Buffett The Billionaire

Warren Buffett (Warren Edward Buffett) is a renowned billionaire, business magnate, and American investor. He holds the position of Chairman and largest shareholder of the multinational conglomerate Berkshire Hathaway. As of the current date, according to Forbes magazine, Buffett's estimated net worth is $118 billion, ranking him 5th in the world. However, this billionaire is completely different from the famous billionaires of the 1980s such as Ivan Boesky, and Michael Milken. He is known as someone who has become wealthy in a "clean" way. His footsteps into the financial world have not only achieved remarkable success but also left a profound impact, opening up a magnificent journey to explore the portfolio of a visionary and courageous individual.

In this article, we will explore Warren Buffett's investment portfolio, from popular stocks to the decision-making process behind his recent moves. Let's embark on a journey to discover one of the greatest passions of the financial world, a man who has proven that success comes not only from luck but also from knowledge, strategy, and boundless patience.

Warren Buffett - The Investment Master and "Oracle of Omaha"

Warren Buffett, whose full name is Warren Edward Buffett, is one of the most outstandingly successful investors and a towering figure in the world of finance. With financial creativity and sharp foresight, he has built a reputation inseparable from the fields of investment and asset management. Affectionately known as the "Oracle of Omaha," Warren Buffett has made his name legendary in both the financial and investment realms.

Warren Buffett is an American figure known for his understated demeanor, yet every word and action of his garners global attention. Despite being the wealthiest man in America, he lives modestly in a house far from Wall Street, the epicenter of the country's largest financial and securities market. He resides in Omaha, a small town with a population of 300,000 in the state of Nebraska.

The "Oracle of Omaha" is renowned not only for his sound business philosophies but also for his surprisingly humble lifestyle. Warren Buffett is also a significant philanthropist. He wrote in a press release: "My will specifies that over 99% of my assets will be donated to charity." In 2006, Buffett pledged to donate 85% of his company's shares to charitable organizations, with a large portion of that amount going to the Bill & Melinda Gates Foundation.

Impressive Investment Performance

Warren Buffett is not only a great investor but also an icon of patience and the ability to predict the future. When one mentions Warren Buffett, a figure that cannot be overlooked is 19.8%. That is the annual growth rate of his investment portfolio from 1965 to 2022. An impressive figure, doubling the growth rate of the S&P 500 index, including dividends.

The Worship of "Value Investing" Philosophy

Warren Buffett's investment strategy is not merely about buying and selling stocks. He worships the philosophy of "value investing." He selects companies with long-term growth potential and real value far exceeding their current price. As a master in determining the true value of a company, he focuses on understanding the business structure, revenue sources, and future prospects of each company before making investment decisions.

One of Warren Buffett's greatest investments of all time is Coca-Cola (NYSE: KO), coincidentally also the stock that Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) has held the longest. No investment demonstrates the skills, patience, and innate ability of the Oracle of Omaha in the field of investment more than this deal.

In 1987, the US stock market plunged into a terrifying downturn, providing some attractive opportunities for investors. At that time, all stocks were being dumped while few paid attention to their fundamental principles. Coca-Cola was a prime example.

Buffett first purchased Coca-Cola stock in 1988 when it was trading at only a few USD per share. By the end of 1989, he had acquired 23.35 million shares worth $1.8 billion. Berkshire Hathaway's book value in 1989 was $4.9 billion, meaning Coca-Cola shares accounted for 20% of Berkshire's net worth.

One of the reasons Buffett decided to buy Coke in 1988 was because the brand had great potential for international expansion and was trading at a modest valuation. Coca-Cola started paying quarterly dividends in 1920 and has increased them every year since 1963. With 60 years of dividend growth, Coca-Cola is known as the "Dividend King." The beverage company distributes dividends averaging 46 cents per share every quarter, and Buffett earns nearly $1 billion annually from it. It was a bold investment decision made after one of the most brutal market crashes in history. But it was Buffett's readiness to seize opportunities and willingness to roll with the punches during times of turmoil that turned him into a legend.

Recent Changes in Warren Buffett's Portfolio

In the second quarter of this year, Berkshire Hathaway made notable adjustments to its investment portfolio. The company initiated positions in D.R. Horton (DHI), Lennar (LEN), and NVR (NVR), indicating an expansion into the housing market. Additionally, Berkshire also made slight adjustments in the energy stock sector by increasing its position in Occidental Petroleum (OXY) while reducing its ownership stake in Chevron (CVX). These changes were reported in the company's quarterly 13F filings, closely monitored by financial analysts and investors.

Despite these changes, some of Berkshire Hathaway's largest positions remain unchanged. The company made no adjustments to its two largest stock positions: Apple (AAPL) and Bank of America (BAC). Apple stock holds the top position in the market value investment portfolio and accounts for over half of Berkshire's total stock portfolio. Meanwhile, Bank of America still maintains its position as the largest stock in terms of share count.

What stocks make up the majority of his portfolio?

As of the end of June 2023, the top positions in Berkshire Hathaway's investment portfolio by portfolio weight are as follows:

The top 10 positions in Berkshire Hathaway's portfolio

Berkshire Hathaway's investment portfolio also includes long-standing positions that have stood the test of time. Stocks such as Kraft Heinz (KHC), Coca-Cola (KO), and American Express (AXP) have been part of the portfolio for many years. In fact, Buffett has owned Coca-Cola stock since "the last century." These positions reflect Buffett's commitment to stocks that demonstrate stability and a history of consistent performance.

Overview of Warren Buffett's Investment Portfolio

Warren Buffett's special favoritism towards Apple stock

Apple holds a significant position in Berkshire Hathaway's investment portfolio in terms of market value, making it the largest stock in the portfolio by value. The position in Apple was valued at around $177.6 billion at the end of June 2023. This position now accounts for over half of Berkshire's total equity portfolio, reflecting the substantial growth of Apple stock in the portfolio. Berkshire is also the largest shareholder of Apple, excluding investment funds. Apple's strong financial results, profitability, and excellent management are prime examples of "Warren Buffett stocks".

Conclusion

Warren Buffett's investment strategy with the "value investing" philosophy - focusing on holding stocks for the long term and prioritizing investment in stable, dividend-growth potential companies - continues to shape Berkshire Hathaway's investment portfolio. Despite recent adjustments, he remains steadfast in principles tested over time. The remarkable success of the investment portfolio, outperforming the market over many decades, clearly highlights the effectiveness of his investment approach. The invaluable lessons from Warren Buffett's bold journey have become an invaluable source of inspiration and a model for those pursuing investment research and fostering a visionary outlook in the financial world.