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The five stocks in which Warren Buffett raises 75% of his wealth

2021-06-04T05:02:28.768Z

The mythical investor has never had a portfolio as concentrated as now Warren Buffett (Nebraska, 1939) is the sixth richest man on the planet , with a fortune valued at more than 100,000 million dollars. Unlike the rest of the billionaires on the Forbes list, Buffett has not made his fortune by creating a successful company, such as Amazon, Tesla or Google, but by investing. His portfolio of assets has ten stock investments, but never before has Buffett had such a hi



Warren Buffett (Nebraska, 1939) is the sixth richest man on the planet

, with a fortune valued at more than 100,000 million dollars.

Unlike the rest of the billionaires on the Forbes list, Buffett has not made his fortune by creating a successful company, such as Amazon, Tesla or Google, but by investing.

His portfolio of assets has ten stock investments, but never before has Buffett had such a high percentage of his assets concentrated in just a handful of stocks.

Buffett channels his investments through the Berkshire Hathaway holding company, which in turn is publicly traded.

This portfolio company is currently worth a market value of $ 660 billion (Buffett is not the only shareholder). 

According to the latest accounts presented, corresponding to the first quarter, Berkshire Hathaway has 75% of its equity concentrated in five companies: Apple, Bank of America, American Express, Coca Cola and Kraft Heinz. 

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Buffett's investments have always been concentrated in the United States, arguing that large companies are capable of growing all over the world, even if they are listed on the New York Stock Exchange.

Buffett has always been an advocate for concentrated portfolios of stocks.

In his opinion, if a lot of time is spent analyzing a company, before investing, the logical thing is to bet heavily on it afterwards. 


1. Apple 

Berkshire Hathaway's stake in Apple is the top position in the portfolio, worth $ 108 billion.

This participation represents 40% of the value of Buffett's investments.

Interestingly, the Omaha oracle (as Buffett is often referred to) invested the electronics maker very late, in 2016. It then invested $ 1 billion.

In the following years it has been inviting another 36,000 million dollars, accumulating a strong revaluation.

"I think it is, probably, the best business I know in the whole world", the mythical investor has come to assure.

2. Bank of America

At a time when investors are fleeing the banking sector, due to the prolonged period of low interest rates (which reduce the operating margins of banks to the maximum), Buffett has continued to bet on the largest financial institution in the United States, Bank of America .

The stake in this firm is worth $ 39 billion, and represents 14% of Berkshire Hathaway's portfolio.

In recent months it has continued to increase its position and sell other banks, such as JP Morgan, Wells Fargo or Goldman Sachs.

Buffett has been especially attracted because Bank of America shares are relatively cheap compared to other rivals.

Specifically, they are valued at 1.09 times their book value, while JP Morgan is listed at 1.65 times their book value.


3. American Express

Another finance company, albeit with a very different profile, ranks third in Berkshire Hathaway's portfolio.

The stake in the American Express card company is valued at $ 21 billion, representing almost 8% of the conglomerate's total value.

Unlike Apple, Buffett first invested in this company in the mid-1960s. The investor has praised on many occasions the great brand image that has been created around this franchise, and has defended the powerful defensive moats that it has. your business, and that make it difficult to attack by competitors.

At the beginning of the pandemic, the company's shares plummeted almost 50%, due to the slowdown in travel and consumption.

The company, however, started a program to offer loans to customers in financial difficulties due to the coronavirus, and it is now worth 15% more than it was at the beginning of last year.

Its revaluation from lows has been 115%, which has rewarded the loyalty of Buffett, who continued to invest in the most difficult moments.

4. Coca Cola

There is no company that the collective imagination links so closely to Warren Buffett.

The Wizard of Omaha first invested in the beverage manufacturer in 1988. Since the 1990s he became one of Bershire Hathaway's top positions and, at its annual convention, held every year in Omaha (except 2021 and 2020, because of the pandemic) you can always see Buffett enthusiastically sipping a Coke.

His current stake in Coca Cola is valued at $ 21 billion, representing 7.8% of Berkshire Hathaway's portfolio.

The profitability obtained with the first shares acquired by the conglomerate is calculated to be 2,000%.

Although this position is very old, like that of American Express, Buffett and his right-hand man, Charlie Munger, have had no problem constantly reviewing the composition of the portfolio.

In fact, there have been times when the top positions were held by insurance companies, railroad companies, or mortgage specialists.

5. Kraft Heinz

Buffett's investment in food giant Kraft Heinz is not a fairy tale like the previous examples.

Berkshire Hathaway invested $ 27.4 billion in ketchup maker HJ Heinz Co in 2013, led by Brazilian venture capital fund 3G.

Two years later, this firm merged with Kraft, but Buffett himself has acknowledged that too much money was paid.

At the time of the merger, the food group's shares were worth $ 89, but gradually they were losing value, and last year, at the worst moment of the pandemic, they were worth $ 22.

Since then, the company (which owns brands like Oscar Mayer sausage, Orlando tomato sauce, Philadelphia cheese spread) has doubled in value.

Now, after the rally, Kraft Heinz shares represent nearly 5% of Buffett's portfolio, worth $ 13 billion.

Source: elparis

All news articles on 2021-06-04

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