Successful Berkshire Hathaway portfolio: An overview of Warren Buffett's investments

Buffett's investment strategy outperformed in 2022 gaining $2.8 billion in dividend payments from the top holdings of the portfolio

By Laila Eid | @Laila Eid | 16 April 2023

Berkshire Hathaway
  • In November 2022, Buffett’s Berkshire Hathaway increased its investments in the five major Japanese trading houses

  • Berkshire Hathaway also increases stake in Occidental Petroleum by buying 7.9 million shares worth $466.68 million

  • Warren Buffett has a net worth of $104 billion as of March 2023, making him the fifth richest person in the world

An insight into one of the world's most successful investor's portfolio

Investing in the stock market can be daunting for many individuals. With thousands of publicly traded companies, choosing the right stocks to invest in can seem overwhelming. In this article, we will take a look at popular strategies and the investment portfolio of one of the world's most successful investors, Warren Buffett.

One strategy that many investors employ is building a portfolio of stocks. A portfolio is a collection of investments held by an individual or an institution. It’s often diversified across different asset classes and sectors, with the goal of minimizing risk and maximizing returns. A well-diversified portfolio should include a mix of stocks, bonds and other assets that are tailored to an individual's investment goals and risk tolerance.

Warren Buffett is an American business magnate, investor and philanthropist. He is the chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company based in Omaha, Nebraska. Buffett is widely regarded as one of the most successful investors of all time, with a net worth of over $100 billion as of 2023.

Buffett's investment philosophy is focused on buying and holding high-quality stocks for the long term. He is known for looking for companies that are undervalued by the market but have strong fundamentals, such as a solid balance sheet and consistent earnings growth.

Warren Buffett's diversified portfolio – what’s in it?

Buffett's portfolio includes a mix of well-known companies from various sectors, with a focus on companies that have strong fundamentals and competitive advantages.

Here is a breakdown of his portfolio holdings as of December 2022, according to Berkshire Hathaway's annual report:

Apple Inc (AAPL) – 38.90% of portfolio

Apple is the largest holding in Buffett's portfolio, accounting for 38.90% of the total value. Buffett started investing in Apple in 2016, and the company has since become one of his largest and most successful investments. Apple is a multinational technology company that produces a range of products, including iPhones, iPads and Macs. Despite concerns over the company's growth potential and competition from other tech giants, Buffett has remained bullish on Apple, stating that he believes the company has a strong brand and a loyal customer base.

Bank of America Corp (BAC) – 11.19% of portfolio

Bank of America is another major holding in Buffett's portfolio, accounting for 11.19% of the total value. Bank of America is one of the largest banking and financial services companies in the world, and Buffett has been a long-time investor in the company. Despite concerns over the impact of low interest rates on the banking sector, Buffett has remained bullish on Bank of America, staying he believes the company has strong fundamentals and is well positioned to weather any downturns in the industry.

Chevron Corporation (CVX) – 9.78% of portfolio

Chevron Corporation accounts for 9.78% of the total value in Buffett’s portfolio. Chevron is a multinational energy corporation that operates in all aspects of the oil and gas industry, including exploration, production and refining. Buffett's investment in Chevron reflects his long-term bullish outlook on the energy sector, despite concerns over climate change and the shift towards renewable energy. Chevron has a strong track record of financial performance and dividend payments, which aligns with Buffett's investment philosophy of investing in companies with solid fundamentals.

Coca-Cola Co (KO) – 8.51% of portfolio

Coca-Cola Co (KO) is a major holding in Buffett's portfolio, accounting for 8.51% of the total value in December 2022. Coca-Cola is a multinational beverage corporation that produces a range of non-alcoholic beverages. Buffett has been a long-time investor in the company, dating back to the 1980s. Despite concerns over the decline in soda consumption and the shift towards healthier beverage options, Buffett has remained bullish on Coca-Cola, as he believes the company has a strong brand and a competitive advantage in the industry. On 31 December 2022, the market value of Buffett's holdings in Coca-Cola was $25,444,000,000 with 400,000,000 shares.

American Express Company (AXP) – 7.49% of portfolio

American Express is a financial services company that offers a range of credit cards, charge cards and other financial products to consumers and businesses. It’s another significant holding in Buffett's portfolio, accounting for 7.49% of the total value. Buffett has been a long-term investor in American Express since the 1960s. Despite concerns over the impact of the COVID-19 pandemic on the company's business, Buffett has remained bullish on American Express, stating that he believes the company has a strong brand and a loyal customer base. As of December 31st, 2022, Berkshire Hathaway held 151,610,700 shares of American Express with a market value of $22,400,481,000.

Building a winning portfolio

As Warren Buffett is one of the most successful investors, other long-term investors can learn from his strategy and portfolio when building their own success.

Warren Buffett's portfolio reflects his investment philosophy, which focuses on buying high-quality stocks and holding them for long-term. He tries to find companies that are currently undervalued in the market as he expects the share prices to rise in the future.

Before buying investing in a company, Buffett does research on the company’s financial situation looking into things like return to equity, debt to equity ratio and profit margin.

Buffett’s portfolio is diversified across different sectors and includes some of the world's largest and most successful companies. While his portfolio holdings are not immune to market fluctuations and industry downturns, Buffett's focus on companies with strong fundamentals and competitive advantages has helped him achieve significant returns over the years.

As with any investment strategy, it's important for individual investors to do their own research and consider their own investment goals and risk tolerance before making any investment decisions.

It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price