Warren Buffett, the billionaire chairman and CEO of Berkshire Hathaway, is making headlines with his massive $120 billion bet on just two assets. According to recent SEC filings, Buffett has allocated 40.1% of Berkshire’s portfolio to Apple (AAPL) and American Express (AXP).
Berkshire first invested in Apple back in 2016 and has made several adjustments to its holdings since then, including significant reductions this year. Despite a strategic exit from the US banking sector and a large sell-off of positions in Bank of America (BAC), JPMorgan Chase, and Wells Fargo, Buffett continues to hold onto American Express stock, a position he has held since the mid-90s.
Buffett’s unwavering commitment to American Express is based on the company’s strong brand, loyal customer base, wide economic moat, and consistent profitability. While Bank of America now holds the number three position in Berkshire’s portfolio with about $35 billion invested, representing 11.7% of the portfolio, Buffett has been steadily selling off shares in the company.
Overall, Buffett is exercising caution in the markets, as Berkshire currently holds $325 billion in cash and equivalents, nearly double the amount at the end of 2023. With about $300 billion invested, here is a look at Berkshire’s top 10 positions:
1. Apple Inc (AAPL) – $74.4 billion Held, 24.8% of Portfolio
2. American Express Co (AXP) – $45.8 billion Held, 15.3% of Portfolio
3. Bank of America Corp (BAC) – $35.0 billion Held, 11.7% of Portfolio
4. Coca-Cola Co (KO) – $25.2 billion Held, 8.4% of Portfolio
5. Chevron Corp (CVX) – $18.3 billion Held, 6.1% of Portfolio
6. Occidental Petroleum Corp (OXY) – $12.2 billion Held, 4.1% of Portfolio
7. Moody’s Corp (MCO) – $12.1 billion Held, 4.0% of Portfolio
8. Kraft Heinz Co (KHC) – $10.3 billion Held, 3.4% of Portfolio
9. Chubb Ltd (CB) – $7.5 billion Held, 2.5% of Portfolio
10. Itochu Corporation (8001:TYO) – $5.9 billion Held, 2.0% of Portfolio
In conclusion, Warren Buffett’s strategic investment decisions and cautious approach to the market continue to shape Berkshire Hathaway’s portfolio. With a significant stake in Apple and American Express, Buffett’s $120 billion bet underscores his confidence in these assets for the long term.