Portfolio movements Warren Buffett They never went unnoticed and in the last few hours, amazingly, the legendary investor managed to expand his portfolio up to 49% of one. technological action.
The CEO of Berkshire Hathaway has avoided technology stocks for most of his career. He gave explanations and even regretted passing on opportunities like Microsoft and Alphabet, but they were all the same thing. Technology companies are often outside their scope of specialization.
However, Buffett began again in its circle of competence about a decade ago, when Berkshire acquired a large stake in IBM in 2011. Berkshire has since abandoned that position, but laid the foundation for another: Apple (AAPL 1.43%) . As of September 30, Berkshire Hathaway has 49% of its $318 billion equity portfolio invested in this emerging tech stock.
Warren Buffett’s 5 investments
However, although one might think that the entrepreneur made his millions by betting on risky companies that generated huge profits, in fact Buffett always showed his taste for more conservative actions on large companies with strong current numbers and good future projections.
To illustrate this, just look at the top five holdings of Berkshire Hathaway, its own holding company: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca Cola (NYSE: KO) y Chevron (NYSE: CVX).
Investments: why Buffett picked these stocks
In analyzing these five options, they all share three characteristics who made them one of Buffett’s favorites to invest your money.
Because Warren Buffett, after all, is an investor who always follows the philosophy of “value investing”, for him they are always important elements of the companies in which he invests. future profit prospects.
Based on this, both Apple, Bank of America, American Express, Chevron and Coca-Cola margins comfortably above 10% in the last 12 months, while it is possible to wait strong earnings reports in the future.
Although these margins can fluctuate, with some of these sectors riskier than others – such as oil and natural gas represented by Chevron – Under normal circumstances, these companies are always likely to operate given that its underlying businesses are strong
In addition to good profit margins and strong future structures, Warren Buffett also examines other company issues to decide whether to invest in them or not: one of their favorites is the power of their brands.
In these 5 actions, brands want Apple and Coca-Cola They are one of the strongest in the world, with consumers choosing them as a favorite over and over again. Meanwhile, American Express, Bank of America and Chevron (along with their Texaco and Chevron gas stations in the United States) are also strong brands around the world, although more so in the US.
Warren Buffett has always shown his favoritism towards paying companies dividends to its shareholders, guaranteeing recurring income that can be invested and generate more profit in the long term.
Additionally, all of these companies have increased their dividend payouts in recent years, making them Buffett’s favorites even if possible. again and again.