In this piece, we will take a look at the ten finance and investment stocks to invest in according to Warren Buffett’s Berkshire Hathaway. To take a look at the top five stocks in this list, head on over to 5 Finance & Investment Stocks to Invest in According to Warren Buffett’s Berkshire Hathaway.
Berkshire Hathaway is an American conglomerate holding company that is headquartered in the state of Nebraska. It is one of the largest of its kind in the world, and it is headed by the renowned investor Mr. Warren Buffett, who is one of the most respected figures in the financial world.
Despite being popular as an investment firm, Berkshire Hathaway initially started out as a textile company. It is one of the oldest companies in the world, tracing its roots all the way back to 1839. Over the years, it has evolved into a holding company instead of one which sells products. This change has been spearheaded by Mr. Buffett himself, who has been at the helm of affairs at Berkshire since 1964. The now billionaire executive initially bought shares in the then textile company after noticing share price movements in response to plant shutdowns.
He would later on go buy a controlling stake in the company after Berkshire’s president Seabury Stanton tried to undercut him by offering less for Mr. Buffett’s stake in Hathaway than initially promised. This would anger the famed ‘Oracle of Omaha’ which would then result in him making one of the most important decisions in his life. Angered by Stanton, Mr. Buffett would purchase a controlling stake in Berkshire Hathaway, which at the time was struggling due to rising cotton prices.
The now billionaire investor would later regret his decision to buy Berkshire Hathaway, lamenting that it has cost him hundreds of billions of dollars in compounded earnings. After taking over, the executive would focus on investments in the insurance sector initially and then diversify Berkshire’s holdings over the years into other sectors such as consumer technology and airlines.
Mr. Buffett is worth a staggering $129 billion as of March 2022 according to Forbes Magazine. He is also one of the most charitable figures in the world, after having donated $45 billion so far, and has also pledged to donate 99% of his wealth. Despite being among the world’s richest, he still lives in a modest house and is known for his fondness for fast food and carbonated drinks.
Berkshire Hathaway’s portfolio was worth an eye popping $330 billion as the fourth quarter of last year came to an end. The bulk of these holdings is concentrated in the world’s largest consumer technology firm, the Cupertino California giant Apple Inc. (NASDAQ:AAPL), with an absolutely massive stake of $147 billion. Other renowned companies in the portfolio are The Coca-Cola Company (NYSE:KO) and The Kraft Heinz Company (NASDAQ:KHC).
Our Methodology
In order to sift out Mr. Buffett’s top finance and investments stock picks, we sifted through Berkshire Hathaway’s filings with the Securities and Exchange Commission for the fourth quarter of last year. This enabled us to pick out its favorite companies, which were then analyzed through several avenues such as analyst coverage, other large shareholders, quarterly earnings, investor letters, and hedge fund sentiment generated through Insider Monkey’s survey of 924 hedge funds for Q4 2021.
10. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Berkshire Hathaway’s Stake Value: $70 million
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 48
Marsh & McLennan Companies, Inc. (NYSE:MMC) is a financial services company headquartered in New York, New York, United States. It offers risk, insurance, and consulting services to customers all over the globe. These services include financial modeling, risk mitigation, insurance program management, reinsurance banking, and wealth consulting.
Mr. Buffett’s investment firm owned 404,911 Marsh & McLennan Companies, Inc. (NYSE:MMC) shares as the fourth quarter of last year came to an end. These were worth $70 million and represented 0.02% of its investment portfolio. An Insider Monkey survey of the same time period revealed that out of 924 hedge funds, 48 had also owned a stake in the company, marking an all time high since 2013.
Marsh & McLennan Companies, Inc. (NYSE:MMC) earned $5.14 billion in revenue and $1.36 in non-GAAP EPS for its fourth fiscal quarter, beating analyst estimates for both. JPMorgan raised its share price target to $157 from $154 in January 2022, highlighting a mixed bag of expectations for the company’s different businesses.
Marsh & McLennan Companies, Inc. (NYSE:MMC)’s largest investor is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 2.9 million shares worth $505 million.
Alongside Bank of America Corporation (NYSE:BAC), Moody’s Corporation (NYSE:MCO), and U.S. Bancorp (NYSE:USB), Marsh & McLennan Companies, Inc. (NYSE:MMC) is a Warren Buffett favorite.
9. Globe Life Inc. (NYSE:GL)
Berkshire Hathaway’s Stake Value: $595 million
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: 28
Globe Life Inc. (NYSE:GL) is a financial firm that offers services such as insurance and investments. It was founded in 1979 and is headquartered in McKinney, Texas. The firm offers health and life insurance alongside offering single and flexible premium annuities.
For its fiscal Q4, Globe Life Inc. (NYSE:GL) raked in $1.3 billion in revenue and $1.7 in non-GAAP EPS, resulting in a 5.7% annual revenue growth for the quarter. Piper Sandler increased the company’s share price target to $117 from $105 in January 2022, outlining that the firm’s life insurance segment is in a better position when compared to its peers due to benefits from the ongoing pandemic.
Berkshire Hathaway had a $595 million stake in Globe Life Inc. (NYSE:GL) by the end of Q4 2021. This came through it holding 6.3 million shares and represented 0.17% of its portfolio. 28 out of 924 hedge funds polled by Insider Monkey during the same time period also owned the company’s shares.
8. Nu Holdings Ltd. (NYSE:NU)
Berkshire Hathaway’s Stake Value: $1 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders: 28
Nu Holdings Ltd. (NYSE:NU) is a Brazilian bank with several kinds of products such as standard and ultraviolet credit and debit cards and a mobile payment platform that allows its customers to make and receive payments, conduct purchases and carry out money transfers.
By the end of the fourth quarter of last year, Mr. Buffett’s financial firm owned 107 million Nu Holdings Ltd. (NYSE:NU) shares. These were worth $1 billion and were a new addition to the portfolio during the quarter. Insider Monkey’s Q4 2021 research covering 924 hedge funds revealed that 28 had owned a stake in the company.
Nu Holdings Ltd. (NYSE:NU) raked in $1.7 million in revenue and -$1.10 in GAAP EPS for its latest fiscal year, missing analyst estimates for both. Its miss for revenue was shocking, as the company’s net sales dropped by a staggering 99.8% annually and missed the estimates by $1.4 billion. The company’s fourth quarter results were better, as it reported $635.9 million in revenue, above the consensus estimate of $393 million.
Bank of America set a $7.5 price target for the company in January 2022, stating that it has rapidly grown its customer base and is on target for a compounded annual growth rate of 86% for revenue over the next three years.
7. Aon plc (NYSE:AON)
Berkshire Hathaway’s Stake Value: $1.3 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.39%
Number of Hedge Fund Holders: 52
Aon plc (NYSE:AON) offers a host of financial services. These include brokerages, risk consulting, health care exchanges, reinsurance, capital raising, design consulting for retirement, and actuarial services. It was founded in 1919 and is headquartered in Dublin, Ireland.
For its fiscal fourth quarter, Aon plc (NYSE:AON) posted $3 billion in revenue and $3.71 in non-GAAP EPS, missing Wall Street analyst estimates for both. Piper Sandler reduced its share price target for the firm to $295 from $325 in January 2022, yet outlined a positive outlook for insurance brokers in general.
Berkshire Hathaway’s stake in Aon plc (NYSE:AON) stood at $1.3 billion during Q4 2021. It represented 0.39% of the firm’s portfolio and came in the form of 4.3 million shares. At the same time, out of the 924 hedge funds surveyed by Insider Monkey, 52 had invested in the firm.
6. Mastercard Incorporated (NYSE:MA)
Berkshire Hathaway’s Stake Value: $1.4 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 144
Mastercard Incorporated (NYSE:MA) is one of the world’s most popular transaction services providers. It allows customers to digitally make payments and provides a host of other services such as prepaid programs, commercial debit and credit payments, proprietary insights, and analytics.
Mastercard Incorporated (NYSE:MA) raked in $5.2 billion in revenue and $2.35 in non-GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. Tigress Financial raised the company’s price target to $472 from $460 in March 2022, as it stated that the company is poised to benefit from the shift to electronic payments.
Mr. Buffett’s financial firm owned 3.9 million Mastercard Incorporated (NYSE:MA) shares by the end of Q4 2021. These were worth $1.4 billion and represented 0.43% of its investment portfolio. During the same time period, 144 out of the 924 hedge funds polled by Insider Monkey had also invested in the firm.
Mastercard Incorporated (NYSE:MA)’s largest investor is Charles Akre’s Akre Capital Management which owns 5.8 million shares worth $2 billion.
Saturna Capital mentioned the company in its fourth quarter 2021 investor letter. Here is what the firm said:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”
Mastercard Incorporated (NYSE:MA) joins Moody’s Corporation (NYSE:MCO), Bank of America Corporation (NYSE:BAC), and U.S. Bancorp (NYSE:USB) in the list of Berkshire Hathaway’s top finance and investment stock picks.
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Disclosure: None. 10 Finance & Investment Stocks to Invest in According to Warren Buffett’s Berkshire Hathaway is originally published on Insider Monkey.
