Secret of Warren Buffett’s Wealth, Top 5 Portfolios

Last Updated on October 30, 2023 by SPN Editor

As of October 2023, Warren Buffett’s wealth reached an impressive $117 billion, securing his place as the seventh-richest person worldwide. Renowned as one of the foremost fundamental investors globally, Warren Buffett serves as the CEO of Berkshire Hathaway, a conglomerate with a wide-ranging portfolio.

Berkshire Hathaway’s holdings cast a wide net, encompassing multiple US and foreign companies, but five notable positions within its portfolio have garnered significant attention. These holdings are not just popular; they’re viewed as long-term treasures that prudent investors might consider adding to their portfolios.

Warren Buffett’s wealth has shown a steady incline, with an estimated net worth of $123 billion, with the largest slice of his financial pie residing in BRK/A US Equity. Despite his immense fortune, Buffett is famous for his unassuming and modest lifestyle, opting to reside in the same unpretentious Omaha home that he acquired for a mere $31,500 in 1958.

His dedication to philanthropy is equally remarkable, with around $55 billion of his wealth being channeled into charitable initiatives, primarily through organizations like the Gates Foundation and foundations set up by his children.

Top five Portfolios which contribute to Warren Buffett’s wealth:

Apple (AAPL): Apple, a household name worldwide, dominates the US smartphone market with an impressive market share of over 57%. Beyond smartphones, Apple extends its reach into tablets, laptops, desktop computers, and their accompanying accessories.

Warren Buffett’s wealth creator machine, Berkshire Hathaway holds a jaw-dropping 915 million Apple shares, amounting to a substantial $177 billion. This holding represents an impressive 51% of Berkshire Hathaway’s entire portfolio. Apple’s global impact is undeniable, boasting annual revenues surpassing $350 billion.

While the stock has recently exhibited some fluctuations, attributable in part to developments like China’s curbs on government officials using iPhones, it has still delivered a year-to-date return of 46%.

Bank of America (BAC): Bank of America, a financial behemoth, offers a broad spectrum of banking services, catering to various segments that include consumer banking, investment management, credit services, and small business banking. Additionally, it serves global banking through Merrill Wealth Management.

Berkshire Hathaway’s holdings feature a substantial 1 billion BAC shares with a total worth of $29 billion. This position constitutes 8.51% of Berkshire Hathaway’s entire portfolio. While the BAC stock has encountered challenges throughout the current year, it remains highly liquid, with over 50% of its deposits readily accessible, thereby mitigating the risk associated with a bank run.

Furthermore, Bank of America rewards investors with a noteworthy 3.38% yearly dividend, making it an appealing choice for the long haul.

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American Express (AXP): American Express, a financial powerhouse, claims a prominent spot within Berkshire Hathaway’s holdings. The company specializes in global payments through its credit cards while offering an array of consumer products to individuals and businesses.

Berkshire Hathaway maintains a robust position with 151 million AXP shares valued at $26 billion, constituting 7.59% of the total portfolio. American Express has demonstrated robust financial performance, marked by a record-breaking revenue of $15.1 billion in its Q3 report, reflecting a 12% increase from the preceding year. The AXP stock has presented a year-to-date gain of 7.4%.

As of October 30, 2023, the quote for American Express Co. (AXP) stands at $141.310 USD. Looking ahead, our forecasts indicate a promising long-term increase, with a projected AXP stock price of $216.951 USD by October 20, 2028.

With a five-year investment, this forecast suggests the potential for a substantial return of approximately +53.53%. This means that a $100 investment today could potentially grow to around $153.53 by 2028.

Coca-Cola Co (KO): Coca-Cola Co, a beverage giant, commands a diverse portfolio of well-known brands, including Coca-Cola, Fanta, Bodyarmor, and more, distributed in over 200 countries. Berkshire Hathaway holds a hefty stash of 400 million Coca-Cola shares, valued at a substantial $24 billion, making up 6.92% of the Berkshire Hathaway portfolio.

Despite the stock’s underperformance throughout the current year, Coca-Cola’s robust fundamentals, profitability, and strong cash flow spotlight its long-term potential. The Q2 report underscored these strengths with a revenue of $12 billion, a 6% year-over-year increase, and earnings per share of $0.78. The KO stock has witnessed a 6.6% decline year-to-date.

Drawing from short-term assessments provided by 14 analysts, the mean price target for Coca-Cola stands at $65.93. These projections span from a minimum of $59.00 to a maximum of $75.00. The average price target signifies an 18.2% rise from the most recent closing price of $55.78.

Chevron Corp (CVX): Chevron Corp, an energy juggernaut, engages in the production of oil and natural gas, alongside the manufacture of transportation fuels, lubricants, petrochemicals, and additives, all while developing technologies to enhance the industry.

Chevron captures 5.56% of Berkshire Hathaway’s portfolio, with 123 million CVX shares valued at $19 billion. Chevron’s Q2 earnings report exceeded revenue expectations by 8%, unveiling a net profit of $6 billion for the quarter. While this performance outpaced predictions, it represented nearly half of the profit recorded for the corresponding period in the prior year.

The CVX stock has encountered a 4% decline year-to-date, with a 2025 prediction of $165.63, assuming it maintains its average annual growth rate from the past decade, reflecting a 14.74% increase in stock price. Should this trajectory persist, the stock is forecasted to reach $233.57 in 2030, signifying a robust 61.80% growth from its current valuation.