Warren Buffett Portfolio Breakdown
Warren Buffett is one of my biggest inspirations in the financial world. I’ve spent quite a few blogs talking about his investments and ideas. And that’s because I believe that we can all learn something by keeping an eye on his Stock Market moves. Luckily, his portfolio is publicly available, and, in today’s blog, we’re going to have a look at his choices for 2021.
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Buffett’s Top Ten Picks for 2021?
Here’s the spread of Buffett’s 10 biggest stocks between the industries:
- 51% – Information Tech
- 26% – Financial Stocks
- 13% – Consumer Staples
- 4&4% – Consumer Discretionary & Healthcare
The rest of his portfolio is made up of much smaller positions, all of which are under 1%.
As of the recording of this blog, Warren Buffett’s largest position on the Stock Market is Apple. And, given the state of the market right now, I don’t think this is likely to change, at least in the near future. Berkshire Hathaway, Buffett’s investment company, owns 944.3 million shares of Apple – almost 48% of his entire portfolio (or 47.8% to be exact). This adds up to 109 billion dollars in Apple shares. Yes, that’s a pretty significant sum to put into a single company, but I think we can all agree that Warren Buffett is a person who knows what he is doing.
Apple, ticker symbol APPL, is … one of the world’s largest and most popular tech and consumer electronics companies in the world.
I don’t think Apple needs an introduction, especially since we’ve already talked about them so many times here on this website.
Currently, Apple stock is sitting at:
- Current Price: $127.14 (today change: -1.77 (-1.37%))
- PE Ratio: 38.76
- Market Cap: 2.139 T
- EPS: 3.28
- iPhone sales – 41%
- Services (iTunes, Apple Play, etc.) – 22.5%
- IMac sales – 14%
- Wearables & Home Accessories – 12.2%
- IPad sales -10.5%
41% of their total revenue is made up of IPhone sales. Then, there’s also the IMac (14%) and IPad (10.5%), along with their wearables and home accessories (12.2%) and their services make up the last 22.5% (ITunes, App store, Apple Pay).
Now, of course, I would not advise you, or any other investor out there to go this heavily into a position, no matter how solid it looks on the outside. Remember – you and I are not Warren Buffet. We don’t have the knowledge, we don’t have the experience, and (probably most important of all) – we don’t have the capital to afford to put so many eggs in one basket.
Bank of America (BAC)
Warren Buffett’s second-largest position is the Bank of America Corp, one of the largest banks in the States. Buffett’s BAC shares make up a total of 10.6% of his portfolio, amounting to over 24.3 billion dollars.
- Current Price: $ 33.01 (today change: -0.98 (-2.88%))
- PE Ratio: 16.26
- Market Cap: 285.533B
- EPS: 2.03
- Dividend: 2.18%
Buffett has a lot of experience with bank stocks, but the financial field is a bit shaky right now, and this investment could prove risky. Still, The Bank of America is a solid company with affordable shares, which also pays a nice dividend.
8.6% of the Berkshire Hathaway portfolio is made up of Coca-Cola stock. We’re looking at 400 million shares, valued at a total of 19.7 billion dollars. Now, I’m not a huge fan of consuming soft drinks myself, but the Coca Cola Company is an excellent, well-established business, backed up by long years of success. They’ve proven their ability to deliver consistent results, and you can hardly blame Warren Buffett for choosing them as one of his top positions.
- Current Price: $ 48.70 (today change: -0.53 (-1.08%))
- PE Ratio: 16.26
- Market Cap: 285.533B
- EPS: 1.93
- Dividend: 3.37%
- Simply Light Orange
Coca-Cola pays an impressive dividend of over 3%, and they’ve got a proven track record of consistently increasing it year over year, ever since 1962. We’re talking 58 years. Now, if you’ve seen my dividend stock investing advice blog you’d know that this is one of the most critical factors to look for when making a dividend investment.
If you’ve been following Buffett’s investments so far (or, if you’ve seen my previous blogs about him), you’ll know that he loves financial companies. And his number four stock, making up 6.6% of the Berkshire Hathaway portfolio is just that. This amounts to 151 million shares, valued at 15.2 billion dollars.
- Current Price: $ 122.15 (today change-1.63 (-1.32%))
- PE Ratio: 30.07
- Market Cap: 98.355B
- EPS: 4.06
- Dividend: 1.41%
Founded over 170 years ago, in 1850, American Express is known for its charge and credit card businesses. And they had an excellent couple of years, right up until the lockdowns happened. The stock got hit pretty hard but is now recovering.
Kraft Heinz makes up 4.3% of Buffett’s portfolio, for a total of 325.6 million shares, valued at 9.7 billion dollars.
Kraft Heinz is the third-largest food and beverage company in North America.
- Golden Circle
- Current Price: $31.99 (today change: -0.09 (-0.28%))
- PE Ratio: 30.07
- Market Cap: 39.112B
- EPS: -0.40
- Dividend: 5%
The stock price for Kraft Heinz has gone down over the last couple of years, making it an excellent purchase for those who believe in the company’s long-term future. They also offer a lovely dividend of 5% to top it all off.
The two bank stocks
We’ve got Moody’s Corp (ticker symbol MCO) and US Bancorp (ticker symbol USB) at numbers six and seven. MCO makes up 3.1% of the portfolio, while USB accounts for 2.1%. These are financial stocks, which are very affordable right now, but the market volatility and projected economic difficulties make them a bit questionable for most investors.
Moody’s Corporation – Financial Stats
- Current Price: $ 266.65 (today change: -5.51 (-2.02%)
- PE Ratio: 27.76
- Market Cap: 50.077B
- EPS: 9.60
- Dividend: 0.84
US Bancorp – Financial Stats
- Current Price: $ 48.40 (today change:-0.88 (-1.79%))
- PE Ratio: 16.02
- Market Cap: 50.077B
- EPS: 3.02
- Dividend: 3.47%
Charter Communications is a US-based telecom company, making 1.4% of Buffett’s portfolio, valued at 3.3 billion dollars. They’ve got a healthy amount of paying customers and are in a stable position in their field, but unlike most other stocks on this list offer no dividend.
- Current Price: $ 628.91 (today change: +5.82 (+0.93%))
- PE Ratio: 49.87
- Market Cap: 125.703B
- EPS: 12.61
Davita Healthcare Partners
Davita Healthcare Partners, ticker symbol DVA, is a company specialising in the distribution of dialysis systems, making up 1.4% of Buffett’s investing portfolio for 2021. And, even though this is one of his smallest positions, we’re still talking about Berkshire Hathaway, and so, we’re looking at 127 million shares, worth 3.1 billion US dollars. Healthcare is one of the most stable sectors out there, with consistent results during any economic conditions. And, with all of the recent recession talks, this move should come as no surprise.
- Current Price: $ 118.75 (today change -0.89 (-0.74%))
- PE Ratio: 17.78
- Market Cap: 13.3B
- EPS: 6.68
Wells Fargo, ticker symbol WFC, is the fourth largest bank in the States and it makes 1.3% of the Berkshire Hathaway portfolio. Buffett owns 127 million shares of WFC, valued at 3 billion dollars.
- Current Price: $ 32.04 (today change: -2.71 (-7.80%))
- PE Ratio: 78.15
- Market Cap: 132.469B
- EPS: 0.41
In closing, I want to remind you that being a successful long-term investor means only going into positions you understand. Now, I might be a really big Buffett fan, but I’m not going to jump into a company that I personally am not familiar with, just because he likes it.
I want to talk about his portfolio because it’s a great example of balance between different industries and stock types. He’s got a healthy amount of dividend stocks, some really solid, well-established industry leaders and some companies that are all but guaranteed to continue delivering consistent results, no matter the economic climate.
I tried to keep it brief, but there was a lot to talk about here, so the blog ended up being a tad longer than usual. But I already warned you at the start, didn’t I? If you’re still reading, please consider giving me a thumbs up and sharing the blog with your friends, because it really helps our community grow.
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Thank you all for being with me today and until next time!
Recommended books for further reading:
- The Warren Buffett Way
- The Intelligent Investor – Benjamin Graham
- The Snowball: Warren Buffett and the Business of Life
- Warren Buffett and the Interpretation of Financial Statements
- How to Make Money in Stocks: A Winning System In Good Times And Bad
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