Warren Buffett’s Stock Holdings Remain Tilted Towards Cash-Generating Companies

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Warren Buffett’s top holdings
FLUIDITY: The biggest Buffet investment is by far Apple accounting for almost half of his entire portfolio. PICTURE BY PixaBay

Buffett is widely known as a conservative with investments for many years now, and his portfolio currently includes 47 names, all of which are cash-generating businesses.


During times of uncertainty, investors and traders are more attentive to what experts in the field are doing, so they can have a better understanding of what might happen next. One of the most popular investors in the world today is Warren Buffett, who is now managing over $300 billion in investments via his firm Berkshire Hathaway.

Buffett is widely known as a conservative with investments for many years now, and his portfolio currently includes 47 names, all of which are cash-generating businesses that have the potential to grow over time.

The biggest Buffet investment is by far Apple, now accounting for 40.76% of Berkshire’s portfolio. Buffett bought over 894 million AAPL shares, valued at $122.34 billion based on the current market valuations.

Despite a setback in 2022, Apple remains the most valuable company by market capitalization listed in the USA. It has large profit margins, competitive products, and is still relatively cheap when it comes to PER. Because it’s so popular and trading AAPL stocks or derivatives can be done via brokers like easymarkets.com, the company continues to benefit from consistent inflows.

Bank of America

With interest rates rising this year, backed by higher inflation around the world, commercial banks have the potential to benefit, since their interest-related revenues can go up. Second on the holdings list is Bank of America, a popular US bank that accounts for a little over 10% of Buffett’s portfolio.

Based on the latest releases, Berkshire holds 1.01 billion shares worth $31.44 billion. It should come as no surprise to see banks part of the portfolio, considering such companies have historically been viewed as attractive by Buffett. Inflation is not projected to ease anytime soon, so central banks don’t have any reason to start cutting rates.

Coca-Cola

Third on Buffett’s holdings list is Coca-Cola, a company that has been part of his portfolio for a long time. With 400 million shares worth $25.16 billion, KO accounts for 8.38% of the overall holdings. Coca-Cola managed to deliver earnings above analysts’ expectations, despite the fact that consumers are now seen struggling with higher bills and food costs.

Unlike tech names, KO has been constantly rewarding investors with dividends and it’s actually using some of the revenue to buyback stocks. When looking at the price, it can be regarded as a low-beta name, since volatility has been subdued over the longer run.

Chevron

Energy is the only sector that managed to outperform in 2022 and this aspect did not go unnoticed by Buffett. Chevron is now the 4th largest holding in his portfolio, after the number of shares held by him quadrupled this year.

Berkshire now holds 161.44 million shares worth $23.37 billion, or approximately 7.79% of the whole portfolio. Buffett made a consistent purchase in Q1 of the year and did not make any adjustments since then, suggesting that he’s comfortable with holding energy stocks for long.

Other important acquisitions in 2022 are Occidental Petroleum, Activision Blizzard, and HP, but each of these stocks accounts for a smaller share of the portfolio.