Investors closely following Warren Buffett stocks witnessed strategic shifts in Berkshire Hathaway’s (BRKB) portfolio during Q2, showcasing the Oracle of Omaha’s adaptability within his proven investment methodology. In a surprising move, Berkshire Hathaway initiated positions in homebuilders D.R. Horton (DHI), Lennar (LEN), and NVR (NVR), indicating Buffett’s readiness to explore new opportunities. This article delves into Berkshire’s Q2 portfolio adjustments, shedding light on key stock moves and the current state of its holdings.
Key Q2 Moves: Berkshire Hathaway’s Q2 13F filing, as tracked by whalewisdom.com, revealed several noteworthy maneuvers. The conglomerate significantly expanded its stake in Occidental Petroleum (OXY) while reducing its holdings in Chevron (CVX). These moves highlight Buffett’s strategic reallocation within the energy sector.
Notably, Berkshire made no alterations to its two largest holdings, maintaining steadfast positions in tech giant Apple (AAPL) and banking stalwart Bank of America (BAC). Apple remains the top holding in Berkshire’s portfolio by market value, emphasizing the company’s continued confidence in the tech sector.
Consistency in Long-Held Positions: Buffett’s investment philosophy of buy-and-hold was evident in the preservation of long-held positions, including Kraft Heinz (KHC), Coca-Cola (KO), and American Express (AXP). Remarkably, Buffett has maintained ownership of KO and AXP stocks since Q1 2001, showcasing the enduring nature of his strategic investments.
Top 10 Warren Buffett Stocks by Number of Shares (As of June 2023):
- Bank of America (BAC): 1.03 billion
- Apple (AAPL): 915.6 million
- Coca-Cola (KO): 400 million
- Kraft Heinz (KHC): 325.6 million
- Occidental Petroleum (OXY): 224.1 million
- American Express (AXP): 151.6 million
- Chevron (CVX): 123.1 million
- HP (HPQ): 120.9 million
- Nu Holdings (NU): 107.1 million
- Paramount Global (PARA): 93.7 million
Berkshire Hathaway Investment Strategy: Warren Buffett’s buy-and-hold strategy has defined his investment approach, leading to substantial portfolio turnover in recent years. Despite the rapid changes, top Buffett stocks typically align with dividend growth, exemplified by Coca-Cola’s impressive dividend track record spanning 61 years.
Buffett’s investment success is reflected in Berkshire Hathaway’s portfolio, which achieved a 19.8% compound annual gain between 1965 and 2022, outperforming the S&P 500 index. Apple, currently representing over half of Berkshire’s equity portfolio, stands out as the No. 1 stock by market value, underscoring its significance in the portfolio’s overall growth.
Conclusion: As investors navigate the ever-evolving landscape of Warren Buffett stocks, Berkshire Hathaway’s Q2 adjustments provide valuable insights. While maintaining core holdings, Buffett’s willingness to explore new sectors reflects a dynamic investment approach. Whether adapting to market trends or preserving long-standing positions, Warren Buffett’s investment strategy continues to capture the attention of the financial world.