Berkshire Hathaway released its first-quarter 2024 financial results, revealing that the conglomerate’s stock portfolio is heavily concentrated in just five stocks. Led by Warren Buffett, the company maintained its top five holdings unchanged during the first three months of the year, as the stock market surged to new highs. However, Berkshire did reduce its investment in Apple by 13%, marking the second consecutive quarter in which it lowered its stake in the tech giant. Despite this decrease, Apple remains the conglomerate’s largest holding, with Berkshire owning $135.4 billion worth of Apple shares, equivalent to around 790 million shares.
In addition to its substantial investment in Apple, Berkshire Hathaway holds significant stakes in other major companies, including a $34.5 billion position in American Express and $39.2 billion in Bank of America. The conglomerate also has a $24.5 billion investment in Coca-Cola, a longtime favorite of Buffett, and $19.4 billion in Chevron shares. Together, these five positions account for approximately 75% of Berkshire Hathaway’s stock portfolio. While Apple has faced challenges this year, with its stock declining over 4%, the S&P 500 has risen 7.5% to reach record levels. Despite the market fluctuations, Berkshire Hathaway continues to maintain confidence in its top holdings.
The decision to trim Berkshire Hathaway’s stake in Apple could be seen as a strategic move in response to market conditions. Buffett and his team are known for their value investing approach, carefully analyzing companies before making investment decisions. By reducing its exposure to Apple, Berkshire may be reallocating its capital to other opportunities that offer better potential returns. The conglomerate’s disciplined investment strategy has helped it achieve long-term success and establish itself as one of the most respected companies in the financial industry.
While the composition of Berkshire Hathaway’s stock portfolio may change over time, the conglomerate’s core investment principles remain consistent. Buffett’s focus on buying quality businesses with durable competitive advantages and holding them for the long term has been a key factor in Berkshire’s success. The conglomerate’s diversified portfolio of top holdings reflects Buffett’s conviction in the companies’ ability to deliver sustainable growth and generate long-term value for shareholders. Despite market fluctuations and economic uncertainties, Berkshire Hathaway continues to stick to its investment philosophy and remain patient in its approach.
As Berkshire Hathaway’s first-quarter results highlight, the conglomerate’s stock portfolio is heavily weighted towards a few key investments. While Apple may have faced challenges in the current market environment, Berkshire’s long-term outlook on the company remains positive. By maintaining its core holdings and making strategic adjustments when necessary, Buffett and his team demonstrate their commitment to preserving and growing shareholders’ wealth over the long term. As Berkshire Hathaway continues to navigate the ever-changing investment landscape, its thoughtful and methodical approach to portfolio management sets it apart as a leader in the financial industry.
