The 5 Largest Investments in Warren Buffett's Portfolio

Warren Buffet is widely regarded as one of the greatest investors of all time. That's why people pay record amounts of money to have lunch with him and sit on every word he says. In addition to investing in Berkshire Hathway (BRK.B), another way to benefit from his investing strategies is to invest in BRK.B's top holdings, which currently include Apple (AAPL), Bank of American Corporation (BAC), Coca-Cola Company (KO), American Express Company (AXP), and The Kraft Heinz Company (KHC).

Warren Buffett's Berkshire Hathaway (BRK.B) is comprised of dozens of stocks totaling hundreds of billions of dollars. The investment guru has appeared at Berkshire's annual meetings since 1994.

Check out Buffett's top holdings for yourself, and you will find his favorites greatly outweigh his other holdings. BRK.B has a healthy mix of tech stocks, value stocks, and others, yet most of them are lumped into a handful of top stocks.

Let's take a quick look at Buffet's five largest investments: Apple (AAPL), Bank of American Corporation (BAC), Coca-Cola Company (KO), American Express Company (AXP), and The Kraft Heinz Company (KHC).

Apple (AAPL)

You can't fault Buffett for favoring this tech stock. AAPL's products keep on getting better every single year. Though AAPL computers and other tech gadgets have high price tags, they hold firm, prove functional and instill loyalty amongst its customer base.

AAPL has an "A" grade in the Trade Grade POWR Ratings component and a "B" Industry Rank. The stock is ranked 4th out of 30 in the Technology - Hardware industry. Of the 32 analysts who cover AAPL, 24 rate it as a "Buy," eight have it as a "Hold," and only one rates it a "Sell." The average analyst price target is $125.94, which indicates a potential 10% upside. 

Bank of America Corporation (BAC)

BAC is one of the nation's largest banks when measured by branches and aggregate assets. The company also makes money from asset management and credit cards. The POWR Ratings show BAC has a "B" grade in the Trade Grade component. 

Analysts have set a price target of $30.90, indicating a potential upside of 8%. BAC is particularly attractive at its current price of $27.93, as its forward P/E ratio is a mere 15.45. 

Coca-Cola Company (KO)

The soft drink company sells popular beverages ranging from Coke to Dasani water and Powerade sports drink. The POWR Ratings show KO has an "A" grade in the Industry Rank and Trade Grade components. KO is ranked 8th out of 29 stocks in the Beverages industry.

When given to the population, the vaccine should help KO as more people will venture out to fast food chains and restaurants where KO products are sold. Add in the fact that KO is restructuring management, and investors have even more reason to be bullish.

American Express Company (AXP)

AXP processes payments across the globe. Furthermore, AXP is also a travel and network company that sells services and products. The POWR Ratings show AXP has an "A" Trade Grade and "B" grades in the Buy & Hold Grade and Industry Rank components. AXP is ranked in the top 20 out of nearly 50 publicly traded companies in the Consumer Financial Services industry.

Buffett has held AXP for nearly 30 years, and there are no indications he is going to jump ship. The bottom line is AXP is greatly benefitting from the transition to cashless payments. Add in the fact that AXP will benefit from the boost in travel spending following the pandemic's end, and investors have all the more reason to consider the stock.

The Kraft Heinz Company (KHC)

This consumer-packaged food and drink-maker creates and sells everything from snacks to condiments, cheese, and sauce. The POWR Ratings show KHC has an "A" Trade Grade and a grade of "B" for Industry Rank, Peer Grade, and Buy & Hold Grade. KHC is ranked 10th out of 58 stocks in the Food Makers industry.

Analysts have set a price target of $35.55, which could indicate a potential 7% upside. Furthermore, KHC has a forward P/E ratio of 11.59, meaning the stock is undervalued at its current trading price. 

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AAPL shares rose $0.10 (+0.09%) in after-hours trading Wednesday. Year-to-date, AAPL has gained 59.20%, versus a 14.29% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.


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