Warren Buffett’s company, Berkshire Hathaway, recently made some interesting moves in its lesser-known investment portfolio. This “secret” portfolio, managed by New England Asset Management (NEAM), operates independently from Berkshire’s main holdings. In the first quarter, NEAM bought 3,382 shares of Apple.
This is the first time in over a year that the portfolio has owned Apple stock. While the amount is small compared to the nearly 20 million shares NEAM held in late 2022, it shows that Apple remains an attractive investment. Apple has a loyal customer base and is a globally recognized brand.
The company’s innovation, such as its 5G iPhones, has helped it gain significant market share. Apple has also spent over $775 billion to buy back more than 43% of its outstanding shares, which boosts its earnings per share. NEAM also purchased 55,140 shares of Realty Income, a retail real estate investment trust (REIT).
Neam’s notable new investments
This is the first time the portfolio has bought Realty Income stock since the third quarter of 2018. Realty Income owns more than 15,600 commercial properties as of the end of March.
About 91% of Realty Income’s rental income comes from businesses that provide essential goods and services. This makes the company’s income stable in different economic conditions. Realty Income carefully evaluates potential acquisitions, which keeps delinquency rates low and cash flows predictable.
The company’s median occupancy rate is 98.2%, much higher than the median rate for REITs since 2000. Realty Income is known for its consistent monthly dividends. The company has increased its dividend for 111 straight quarters and has raised its monthly dividend 131 times since going public in 1994.
As of June 16, Realty Income’s dividend yield was 5.62%, which is significantly higher than the average yield of the S&P 500. While most people focus on Berkshire Hathaway’s main portfolio, the moves made by NEAM provide additional insight into promising investment opportunities that fit with Warren Buffett’s value-driven approach.
