It is possible to create wealth through imitation, assuming you choose the right person to mimic. For investors, Warren Buffett could be that ideal role model. He's enviably rich and one of the world's most successful stock pickers.
Buffett is also the mastermind behind the stock portfolio owned by the company he runs, Berkshire Hathaway (BRK.A, BRK.B). And because Berkshire must report on its stock holdings quarterly, we all get a glimpse of which stocks Buffett likes.
Read on to learn about Buffett's top stock holdings. You'll also see which stocks Buffett bought and sold in the fourth quarter and which should be contenders for your buy-and-hold portfolio in 2024.
Warren Buffett's Quarterly Portfolio Disclosures
The portfolio information below comes from Berkshire Hathaway’s 13F filings with the SEC for the third and fourth quarters of 2023. You can find those filings by searching the SEC’s EDGAR database.
Form 13F is a quarterly report that institutional investors must file if they oversee more than $100 million in assets. The report details public shares held and their market values as of quarter-end.
Reporting Lag And Secret Stocks
Unfortunately, replicating Buffett’s portfolio isn’t quite as easy as buying the positions that appear on Berkshire’s 13F filings.
The first issue to note is the reporting lag. The form isn’t due until 45 days after the quarter ends. By the time the public sees the data, the share counts and their values may no longer represent that investment manager’s portfolio.
Secondly, investment managers like Berkshire Hathaway can request to keep one or more of their holdings confidential. They use that option when disclosure of the position could materially change the stock’s price. Of course, investment managers want their stocks to appreciate, but only when they’re done buying. If Buffett is building a position over time, for example, a disclosure that raises the stock price could cost him millions.
In Berkshire’s year-end 13F, there is a stock that’s receiving this confidential treatment—and has been since the third quarter of 2023. Investing gurus enjoy guessing what that confidential position might be. But the exact ticker of Warren Buffett’s secret stock will remain under wraps until Berkshire is ready to disclose it.
The brain trust at Forbes has run the numbers, conducted the research, and done the analysis to come up with some of the best places for you to make money in 2024. Download Forbes' most popular report, 12 Best Stocks To Buy for 2024.
Buffett’s Top Stock Holdings By Size
With those caveats out of the way, let’s look at the positions we know are part of Berkshire’s stock portfolio.
Buffett’s Biggest Holdings
The table below shows the 10 largest positions in Buffett’s collection. The total market value of these holdings at year-end was $322 million, which was about 93% of the $347 billion portfolio.
A notable takeaway here is the prominence of Apple
Buffett’s lack of diversification is not a strategy most retail investors should imitate. There are a few reasons for this. One, you and I probably don’t have the resources, brainpower or expertise of Buffett and his team.
Two, the stocks listed on Berkshire’s 13F don’t show the complete picture. Berkshire additionally has dozens of wholly owned operating subsidiaries, including Business Wire, Dairy Queen, NetJets, Pilot Flying J and Sees’ Candies. The company also had about $163 billion in cash and short-term U.S. Treasurys on its balance sheet at year-end.
Most emergency funds fall several digits short of the billions. If you have shallower pockets and less experience than Buffett, it’s wise to play it safe through diversification.
Stocks Warren Buffett Recently Sold
Buffett prefers long holding periods, but he also parts ways quickly with stocks when the outlook changes. For that reason, his divestitures can be more interesting than his purchases.
Buffett’s Fourth Quarter Divestitures
The table below shows all divestitures from the Berkshire portfolio in the fourth quarter.
You can see that Buffett closed out smaller positions in residential construction company D.R. Horton, fintech Stoneco and insurance companies Global Life and Markel.
The largest divestiture in the quarter was about 10 million shares of Apple. Don’t take this to mean Buffett no longer believes in Apple. It’s more likely that this was profit-taking and portfolio-balancing activity.
Stop chasing shadows in the market. Forbes' expert analysts have pinpointed the 12 superstars poised to ignite returns in 2024. Don't miss out—download 12 Best Stocks To Buy For 2024 and claim your front-row seat to the coming boom.
Stocks Warren Buffett Recently Bought
New entrants to the Buffett portfolio always make headlines. Even with the reporting lag, these can be good stocks to research, since Buffett favors companies with solid, long-term outlooks.
Buffett's Fourth Quarter Buys
Sadly, Buffett’s buy activity in the fourth quarter was light. The Berkshire portfolio only added to three existing positions and didn’t pick up any new ones. See the table below for the details.
Buffett picked up 34 million shares of his favorite oil and gas stocks Chevron
The SIRI purchase is harder to explain. Buffett opened the position in the third quarter and then quadrupled its size in the fourth quarter. The Berkshire portfolio also holds positions in Liberty Media’s Liberty SiriusXM tracking stocks LSMXA and LSMXK.
In December, Liberty Media announced its intention to consolidate the tracking stocks with SiriusXM to create a new entity trading under the SIRI ticker. Buffett stands to earn on the conversion of his tracking stocks into SIRI shares. But the SIRI purchase in the quarter implies that Buffett also likes the SiriusXM business as a going concern. The sub-$5 price point and low valuation metrics may be factors.
Warren Buffett’s Top Stock Picks
The Berkshire portfolio includes highly regarded stocks across technology, finance, energy and consumer staples. Let's talk about which ones should be candidates to join your portfolio this year.
Buffett Stocks Analysts Love
The table below includes 10 Warren Buffett stocks analysts like for 2024 and beyond, ordered from largest to smallest. Note: I am a longtime shareholder of Coca-Cola
Buffett likes companies with proven leaders, solid track records and wide economic moats. Economic moat is Buffett’s term for an enduring competitive advantage such as scale, branding, intellectual property or high switching costs for customers. A wide moat protects the business from the ravages of competition for the foreseeable future.
In the value investor vein, Buffett is also happy to collect dividends in lieu of waiting for appreciation gains. Nine stocks on this list pay dividends, with Amazon
Investing Strategies For Success
No stock pick is a slam dunk, whether the tip comes from Warren Buffett or your cousin Vinny. To set yourself up for success, make sure you research before you buy, keep a long-term view, diversify and monitor your holdings so you can adjust as needed.
Research Before You Buy
Where Buffett excels is choosing when to trade into the stocks he likes. He prefers bargain price tags and he’s willing to wait for temporary dips to make his move.
The thing is, Berkshire has owned most of these stocks for years and the value characteristics have changed. That’s where added research is required. Dive in to understand the business fundamentals and, for the stocks you like, develop your own threshold for the right buy-in price.
Think Long-Term
Buffett is not one to aim for quick profits. You shouldn’t be either. Be patient with your positions as long as their fundamentals remain strong. Look at the inevitable downturns as opportunities rather than disasters. Lower prices can be an invitation to add more shares of your best stocks for less.
Diversify
Buffett doesn’t admit to diversifying, but then Berkshire Hathaway holds many different business interests plus a lot of cash. You, too, should spread your wealth across varying asset types. Hold at least 20 individual stocks across different industries. And always keep enough cash on hand so that you'll never have to reach into your investment account for an emergency expense.
Monitor And Adjust
Moats can narrow over time. Business conditions can deteriorate. Leaders can change course.
Prepare yourself for those evolutions by jotting down the things you like about a company when you buy it. You might note the competitive advantage, the customer loyalty, the savvy leadership team or anything else that makes it worthy of your portfolio.
Then, monitor your holdings to ensure those qualities remain in place. If they don't, consider whether it's time for a change.
Buffett Stock Picks For 2024
If you’re aiming to emulate Warren Buffett and increase your net worth in the process, don’t just copy his stock picks. Imitate his practices. Through disciplined research, identify and invest in undervalued assets with unshakeable competitive advantages and strong long-term outlooks.
Then, have patience. Your wealth machine will build momentum if you let it.
Disclosure: I own shares of Coca-Cola.
The brain trust at Forbes has run the numbers, conducted the research, and done the analysis to come up with some of the best places for you to make money in 2024. Download Forbes' most popular report, 12 Best Stocks To Buy for 2024.
