Buffett’s Berkshire Hathaway rebalances portfolio again

Warren Buffett’s Berkshire Hathaway has made some notable moves in its stock portfolio recently. In the third quarter of 2024, the company reduced its stake in Apple by 25%, selling 100 million shares. This leaves Berkshire with 300 million shares in the tech giant. Bank of America, another major holding, also saw a reduction in its shares. Berkshire increased its stake in Domino’s Pizza and Floor & Decor, while significantly decreasing its holdings in Ulta Beauty after just one quarter. These adjustments are part of Berkshire’s ongoing rebalancing strategy. In the current fourth quarter, the firm has continued to sell Bank of America stock while increasing its position in other securities, according to regulatory filings. As of December, some of the top stocks in Berkshire Hathaway’s portfolio by number of shares include: – Apple: 300 million shares – Bank of America: 766.3 million shares – Kraft Heinz: 325.6 million shares – Occidental Petroleum: 255.3 million shares – American Express: 151.6 million shares – Nu Holdings: 86.4 million shares Berkshire’s equity portfolio, valued at over $300 billion, consists of around 50 stocks. Apple remains the top holding by market value at approximately $69.9 billion as of September.

Berkshire adjusts key portfolio holdings

The company has become a cornerstone of Buffett’s portfolio due to its strong earnings, consistent returns, and effective management. Buffett is known for his long-term investment philosophy, often holding stocks for decades. However, Berkshire has experienced significant turnover in recent years, particularly since 2020. Despite this, Buffett continues to focus on acquiring quality stocks at reasonable prices and holding them for the long haul. Some of Berkshire’s long-term holdings include Coca-Cola, which Buffett has owned since 1988, American Express since 2001, and Apple since 2016. Currently, Apple makes up 26% of Berkshire’s total equity portfolio. From 1965 to 2023, Berkshire Hathaway’s stock portfolio achieved a compound annual gain of 19.8%, nearly double the S&P 500 index’s 10.2% return with dividends included. This impressive track record highlights the effectiveness of Buffett’s investment approach. In summary, Warren Buffett’s Berkshire Hathaway continues to be a model of strategic investing, balancing long-term holdings with calculated rebalancing. Investors closely follow Berkshire’s moves, as Buffett’s decisions offer valuable insights into successful portfolio management.