Warren Buffett’s 7 Best Investments


BErkshire Hathaway’s Class A shares are currently trading at around $ 403,000, below a high of $ 539,000 at the end of March. Despite losing a quarter of its value in the last three miserable months, shares of Warren Buffett’s company have risen 5,568.72% in 1990 alone.

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Between the time he took over as CEO in 1965 and March of this year, Warren Buffett added $ 790 billion in shareholder value, according to Motley Fool, for an aggregate return of 4,355,005% of the company’s Class A shares.

It’s not magic. It is the result of the kind of wise investments that have made Buffett the most famous and successful investor in history.

Here’s a look at the best bets on “The Oracle of Omaha,” which filed its first tax return at age 13 and went on to become the fifth richest person in the world.

New York, USA - May 19, 2016: Apple Store glass building with a huge Apple logo on 5th Avenue near Central Park.

Apple (APPL)

Buffett’s love affair with Apple is a well-known fact. Apple accounts for 38.9% of Berkshire’s portfolio and is Buffett’s largest share per mile.

Apple is now trading at about $ 132, below a peak of $ 180 at the end of 2021 and $ 174 in March. According to Barron’s, those staggering first-quarter results cost Buffett $ 30 billion. Still, Berkshire still has $ 90 billion in Apple profits.

Buffett paid $ 31,089 million to acquire 907,559,761 shares of Apple stock, according to its 2021 shareholder letter, which is a base cost of just $ 34.26 per share.

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New York, NY / USA-May 3, 2019: The red light is reflected on the stainless steel facade of the 7th World Trade Center and on the sign of Moody's Investor Services.

Moody’s (MCO)

The Moody’s rating agency accounts for 2.1% of Berkshire’s portfolio, and Buffett has been in the stock market for a long time since 2000, when it split from Dun & Bradstreet.

According to Motley Fool, Buffett paid $ 248 million to acquire $ 24,669,778 at a cost of $ 10.05 per share. Today, Moody’s is trading at about $ 255 for a gain of more than 2,437%.

That, however, does not even take into account the profits that Berkshire has made from the sale of some of its shares in Moody’s over the past two decades, nor the dividends that Moody’s has paid in the previous 22 years. Those two factors add hundreds of percentage points more to the account.

3D rendering Red drink cans Shallow depth of field (close-up).

Coca-Cola (KO)

Coca-Cola is one of the few stocks that is not in the red this year. It has risen about 25 cents a share, or 0.42%, since early 2022.

Berkshire Hathaway owns exactly 400 million shares of Coca-Cola: 9.2% of the company and 7.8% of Berkshire’s portfolio. The stake cost Buffett $ 1.3 billion, according to Market Insider, and Berkshire did not touch its shares for the next 27 years. Today, its stake is worth more than $ 24 billion for a 19-fold gain of 1,800%.

Coca-Cola pays Berkshire $ 672 million in annual dividend revenue, up from $ 88 million in 1995.

Chevron gasoline

Chevron (CLC)

Despite a miserable June, Chevron continues to rise by almost 23% year-round. Not surprisingly, Buffett relied heavily on energy. By the end of 2021, Berkshire owned $ 4.5 billion worth of Chevron, but by the end of March that number had grown to $ 25.9 billion, according to CNBC.

While the bet demonstrates Buffett’s faith in the continued strength of the oil industry, it also reflects his long-held belief in the value of dividend stocks. According to Motley Fool, Berkshire will raise more than $ 6 billion in dividend revenue over the next 12 months. Nearly one-sixth of that mountain of passive income will come from Chevron and its robust 3.6% yield – $ 904,131,705, to be exact – making the energy giant Buffett’s main revenue engine.

2.

Western Petroleum (OXY)

Buffett’s No. 2 dividend stock is also an oil giant. Buffett bet heavily on Occidental after talking to the company’s CEO in a February earnings call, according to Market Insider. Berkshire has invested $ 7.5 billion in OXY this year alone, increasing its stake to more than 15% of the company, a stake that represents 2.6% of Berkshire’s stakes.

Despite falling from a peak in late May of nearly $ 71 to its current price of $ 55 per share, Occidental is still rising more than 77% in the year. It went up 106%, making Buffett’s big bet the best return on the entire S&P 500. The company will pay Berkshire $ 874,444,444 in dividend revenue over the next 12 months, according to Motley Fool.

Kraft Heinz ketchup bottles

Kraft Heinz (KHC)

Multinational food giant Kraft Heinz accounts for 3.8% of Berkshire’s portfolio. While not one of Buffett’s most striking actions, it shows the dominance Buffett continues to show when it comes to playing defense.

As a basic consumer stock, Kraft Heinz does not sway too much with the market winds because it sells everyday things that people need and finds a way to buy no matter the state of the economy. Buffett has long used his actions as a hedge, and the current slowdown once again demonstrates the wisdom of his strategy.

In mid-May, when the S&P was down 15%, Kraft Heinz was up 25%. It has now dropped 2.8% to date, but even that provides a powerful counterweight. For the context, the S&P fell more than 23% in the year. The Nasdaq has lost almost a third of its value.

Indianapolis - Circa June 2016: GEICO Insurance Office.

GEICO

The company that could be Buffett’s best investment is not the one that you can buy shares of in the stock market, because it’s one of the dozens of companies that Berkshire Hathaway owns.

But that was not always the case.

From 1976, Buffett began buying shares in GEICO, a career that continued until 1996. At that time, he owned about half of the company. That same year, he bought the remaining 49%. Berkshire spent two decades and $ 2.35 billion swallowing GEICO.

Today, the company is the crown jewel of the Berkshire insurance group, which represents the heart of the company. In his letter to his shareholders, Buffett called the insurance group the largest of Berkshire’s “four giants.”

Today, GEICO’s assets are worth more than $ 32 billion.

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Note: All possessions are as of March 31, as reported in the latest Berkshire Hathaway 13F report on May 16.

This article originally appeared on GOBankingRates.com: Warren Buffett’s 7 Best Investments

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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