60% of Warren Buffett’s portfolio is invested in these three stocks

Warren Buffett is one of the best investors of all time. Since 1965 Berkshire Hathaway (BRK.A -0.81%) (BRK.B -0.62%)The brilliantly designed conglomerate he helped build has returned more than 20% annually, creating fortunes for its shareholders along the way.

Thus, Berkshire’s public stock portfolio is closely watched by investors seeking to build lasting wealth in the stock market. Investing together with top investors can be an excellent thing strategy For those seeking huge returns. Below are Buffett’s largest holdings.

Warren Buffett. Image source: Motley Fool.

Apple: 41.6%

Buffett called once apple (AAPL -1.89%) “Probably the best job I know of in the world.” This is a huge praise from the main investor, who has become one of the richest people in the world by carefully selecting elite companies with strong competitive advantages.

Perhaps not surprisingly, then, Apple is Berkshire’s biggest hub to date. Buffett’s investment firm owns more than 915 million shares of Apple, which are currently valued at $142 billion.

Buffett appreciates the beloved Apple brand and its sticky ecosystem. He came to understand the central place of the iPhone in the lives of more than a billion people. Buffett also knows that once someone buys an iPhone, they tend to buy other Apple products and services and remain a loyal customer.

Furthermore, Buffett estimates the production of massive cash flows for the tech giant. Apple has made more than $90 billion in free cash flow Only during the first nine months of fiscal year 2022. This massive amount allows Apple to reward its investors with a steadily increasing dividend flow and a massive share buyback program. These stock purchases have helped boost Berkshire’s share of Apple’s earnings over time, which Buffett credits.

Bank of America: 10.2%

American bank (buck 1.89%) It is the second largest possession in Berkshire and another favorite of Buffett. Bank of America, as the company is often called, accounts for more than 10% of Berkshire’s portfolio, a stake estimated to be worth about $35 billion.

Buffett pays tribute to CEO Brian Moynihan, who helped boost Bank of America’s operations after its impending collapse during the Great Recession and financial crisis of 2007-2009. Since taking office on January 1, 2010, Moynihan has prioritized risk management and a return to traditional banking fundamentals.

Despite the pandemic-related turmoil and a challenging macroeconomic backdrop that has been challenging Bank of America and other financial institutions, Buffett views the bank as a long-term core ownership. And over longer periods of time, top-tier banks tend to grow and profit along with the expansion of the overall economy.

To maximize the odds of success, Bank of America is cutting expenses in traditional branch operations and investing aggressively in digital banking technology. This has enabled Bank of America to capitalize on the boom in mobile banking and app-based transactions—and gain market share from its less tech-savvy competitors.

With Bank of America’s stock price down about 22% in 2022 due to mostly short-term recession fears, you currently have the opportunity to acquire shares of this best-in-class bank at a huge discount.

Chevron: 7.8%

The oil sector has recently become a focus of Buffett’s interest. It’s easy to see why. energy stock They tend to perform well during inflationary times. And the chevron (CVX -1.62%) It is particularly well positioned to profit from rising oil and gas prices.

The war in Ukraine is prompting many countries in Europe and around the world to search for new sources of reliable energy supplies. Chevron is meeting this vital global energy need by increasing its production of oil and liquefied natural gas.

The energy giant’s earnings, in turn, are on the rise. Chevron’s revenue rose 83% year-over-year to $68.8 billion in the second quarter, while its adjusted profit jumped 245% to $11.4 billion. Chevron is committed to passing on much of its profits to shareholders through massive dividends—its stock currently yields 3.5%—and share buybacks.

These factors undoubtedly contributed to Buffett’s decision to make Chevron Berkshire’s third largest publicly traded company. Berkshire owns more than 163 million shares in the oil and gas giant, a stake estimated at $27 billion.

Bank of America is an advertising partner of The Ascent, the Motley Fool Company. dark atmosphere He has no position in any of the mentioned shares. Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B stock). Motley Fool recommends the following options: long calls in January 2023 worth $200 on Berkshire Hathaway (B shares), long calls in March 2023 worth $120 on Apple, short calls in January 2023 of $200 on Berkshire Hathaway (B shares), short calls in January 2023 of $200 on Berkshire Hathaway (B shares), Short calls in January 2023 $265 on Berkshire Hathaway (B), short calls in March 2023 of $130 on Apple. Motley Fool has a profile Disclosure Policy.