Warren Buffett is among the most successful investors on the planet and has an enviable track record when it comes to investing in the stock market. So stocks owned by Warren Buffett’s holding company Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) are closely watched by Wall Street.
Let’s take a look at the top 10 stock investments of the Oracle of Omaha in 2022.
Apple
Apple (NASDAQ:AAPL) accounts for 40.6% of Berkshire’s total equity portfolio. Berkshire owns 915.2 million shares of the tech heavyweight valued at over US$131 billion. Buffett had previously referred to Apple as Berkshire’s third-largest business, after insurance and railroad.
Apple has created massive wealth for long-term investors and returned a staggering 65,700% to investors in dividend-adjusted gains since October 2002.
Apple continues to thrive on innovation, making it a compelling bet for investors despite its massive size and US$2.3 trillion market cap.
Bank of America
Bank of America (NYSE:BAC) is the second largest holding of Warren Buffett and accounts for 10.8% of his portfolio. Down 30% from all-time highs, Bank of America now offers investors a tasty dividend yield of 2.6%.
Berkshire owns more than one billion BAC shares worth US$35 billion at the time of writing.
Chevron
The energy giant is Berkshire’s third-largest holding and accounts for 8.5% of its total portfolio. One of the top-performing stocks of 2022, Chevron (NYSE:CVX) is a diversified energy company that generates cash flows across business cycles. Due to its predictable earnings, Chevron offers investors a dividend yield of 3.4%.
Coco-Cola
Among the most popular brands globally, Coca-Cola (NYSE:KO) is also a recession-resistant stock. Its wide portfolio of beverages and snacks across geographies enables Coca-Cola to easily withstand economic cycles. Coca-Cola also enjoys significant pricing power and is well poised to improve its bottom line despite a challenging macro environment in 2022.
Berkshire owns 400 million shares of Coca-Cola, representing a 6.9% share in its portfolio.
American Express
Another financial services company that makes this list is American Express (NYSE:AXP). Accounting for 6.7% of Berkshire’s portfolio, AXP stock has returned over 550% to investors in the last two decades.
American Express increased its dividend by 20% in 2022 and provides investors a forward yield of 1.44%.
Occidental Petroleum
Due to rising oil prices, Berkshire Hathaway has consistently increased its position in Occidental Petroleum (NYSE:OXY) in the past year. According to the most recent filing, OXY stock accounts for 4.1% of Buffett’s portfolio. In fact, Berkshire owns over 20% of Occidental’s outstanding shares, worth over US$13 billion.
Kraft Heinz
A consumer staples behemoth, Kraft Heinz (NASDAQ:KHC) has at least eight brands that deliver more than US$1 billion in sales each year. Berkshire owns 325 million shares of Kraft Heinz worth US$11.8 billion, representing 3.6% of the total portfolio.
Over the long term, Kraft Heinz aims to increase organic net sales between 2% and 3%, while adjusted earnings are forecast to expand by 6% and 8%, respectively, annually.
Moody’s Corp.
A financial data and credit rating company, Moody’s Corp. (NYSE:MCO) has been a part of Warren Buffett’s portfolio for more than two decades. Berkshire has 1.8% of its total stock portfolio invested in Moody’s, and the latter is currently trading 40% below all-time highs.
Moody’s pays investors a dividend yield of 1.2% and has increased these payouts by a phenomenal 1,400% in the last 16 years.
U.S. Bancorp
U.S. Bancorp (NYSE:USB) is the fifth-largest bank south of the border in terms of asset size. It is the parent company of U.S. Bank and the ninth largest holding of Warren Buffett. Berkshire holds shares worth US$5.6 billion in U.S. Bancorp, a company that primarily focuses on producing high-quality loans, reducing the risk of defaults.
BYD
The final stock on this list is China’s largest electric-vehicle manufacturer, BYD. The automobile company accounts for 1.6% of Buffett’s portfolio and should benefit from a rapidly expanding addressable market in the next two decades. EVs might account for 40% of total vehicle production in the 2030s, and China is already the largest EV market globally.
