In this article, we discuss Warren Buffett’s stock portfolio and his recent buys.
American business tycoon, entrepreneur, and investor Warren Edward Buffett presently serves as Berkshire Hathaway chairman and CEO. He is among the most accomplished investors in the world, and as of February 2023, his net worth was over $108 billion, the fifth-wealthiest human being in the world. Buffett, the only son of Leila (née Stahl) and Congressman Howard Buffett, was born in Omaha, Nebraska, in 1930. He was the second of Leila and Howard Buffett’s three children.
Buffett showed early signs of interest in business and investment. When he was seven years old, he took out the book ‘One Thousand Ways to Make $1000’ from the Omaha Public Library. Entrepreneurial endeavors kept the early life of Buffett busy and interesting. He sold chewing gum, Coca-Cola, and monthly magazines door to door as one of his early business operations. From 1951 to 1954, Buffett worked as a salesman of investments at Buffett-Falk & Co.; from 1954 to 1956, he was a securities analyst at Graham-Newman Corp.; from 1956 to 1969, he was a general partner at Buffett Partnership, Ltd.; and starting in 1970, he was the chairman and CEO of Berkshire Hathaway Inc.
Because of his partnerships, which had excess funds of $7,178,500 in January 1962, of which more than $1,025,000 was owned by Buffett, he became a millionaire that year. He combined these alliances into one. Buffett invested in Berkshire Hathaway, a manufacturer of textiles, and eventually acquired control of it. From Seabury Stanton, the company’s owner, who he eventually sacked, he started purchasing shares of Berkshire. At a share price of $7.60, Buffett’s partnerships started buying stock. When Buffett’s partnerships started actively buying shares in Berkshire in 1965, they did so at a price of $14.86 per share, despite the fact that the business had $19 per share in working cash at the time.
On May 29, 1990, Berkshire Hathaway decided to sell class A shares, and the market closed at $7,175 per share. This is when Buffett became a billionaire. The share value of Berkshire Hathaway reached $200,000 per share for the first time on August 14, 2014, valuing the business at $328 billion. By this time, Buffett had donated most of his stock to charitable organizations, but he still owned 321,000 shares, valued at $64.2 billion. For failing to properly disclose the purchase of USG Corporation shares on December 9, 2013, Berkshire Hathaway was fined $896,000 on August 20, 2014.
Buffett contributed $2.6 billion to Swiss Re’s effort to obtain additional capital in 2009. With the option to purchase more than 20%, Berkshire Hathaway already held a 3% investment in the company. Buffett purchased Burlington Northern Santa Fe Corp. for $34 billion in cash and equity in 2009 as well. With an average net worth of almost $62 billion, Buffett was listed by Forbes as the richest person in the world in 2008. With a net worth of $37 billion in 2009, Buffett was the second wealthiest person in the United States, behind only Bill Gates, after giving vast sums of money to charity. By September 2013, his net worth has increased to $58.5 billion.
Some of the top stocks in the investment portfolio of Berkshire Hathaway include Apple Inc. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC), and American Express Company (NYSE:AXP).
Our Methodology
The companies listed below were picked from the investment portfolio of Berkshire Hathaway at the end of the third quarter of 2022. The stocks that are a new addition to the portfolio in 2022 were selected. Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
Buffett Stock Portfolio: Warren Buffett’s Recent Buys
10. Jefferies Financial Group Inc. (NYSE:JEF)
Number of Hedge Fund Holders: 33
Jefferies Financial Group Inc. (NYSE:JEF) engages in investment banking and capital markets, and asset management businesses in the Americas, Europe, the Middle East, and Asia. The most recent buy of Berkshire Hathaway is Jefferies Financials which was bought in the third quarter of 2022 with 433,558 shares worth of $12.8 million. On January 9, Jefferies Financial posted earnings for the fourth quarter of 2022, reporting earnings per share of $0.57, beating the analyst’s estimate of $0.52. The revenue over the period was $1.44B beating the analyst’s estimate of $1.25B, revenue was down 18% compared to the revenue over the same period last year.
At the end of the third quarter of 2022, 33 hedge funds in the database of Insider Monkey held stakes worth $495.4 million in Jefferies Financial Group Inc., compared to 29 in the preceding quarter worth $425.5 million.
Just like Apple Inc., Bank of America Corporation, and American Express Company, Jefferies Financial Group is one of the top stocks that elite investors are interested in as the market recovers from a macro slowdown.
In its Q2 2022 investor letter, Goodhaven Capital Management, an asset management firm, highlighted a few stocks and Jefferies Financial Group Inc. was one of them. Here is what the fund said:
“Jefferies Financial Group Inc. was our next biggest dollar detractor and had also been a strong contributor in prior periods. As we have previously mentioned, while Jefferies has become a better business it is still a cyclical business, and some moderating earnings after the recent boom were to be expected. In the first six months of their fiscal 2022, Jefferies earned a ROATE (Return on Adjusted Tangible Equity) of over 11%, reasonable given the very material slowdown in the capital markets lately. They also repurchased over $620 million of their shares at $34+ per share and Jefferies’ stock now trades below tangible book value/share. Given the obvious slowdown in capital raising transactions industry-wide, we expect continued muted results in the near-term but also continued share buybacks. Our long-term enthusiasm remains, as does our view of the material upside for the shares from recent levels.”
9. Louisiana-Pacific Corporation (NYSE:LPX)
Number of Hedge Fund Holders: 28
Louisiana-Pacific Corporation (NYSE:LPX) manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. Berkshire Hathaway bought a stake in Louisiana-Pacific Corporation stock in the third quarter of 2022 with 5.8 million shares worth of $296.7 million. This makes up 0.1% portion of its total investment.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Louisiana-Pacific Corporation with 5.8 million shares worth more than $296.7 million.
In its Q2 2022 investor letter, L1 Capital International, an asset management firm, highlighted a few stocks and Louisiana-Pacific Corporation was one of them. Here is what the fund said:
“We have invested in Louisiana-Pacific Corporation due to its Smartside siding business. Smartside has consistently increased its share of the siding market in the U.S., not just in new residential construction but repair and renovation sheds and other markets. Louisiana Pacific has not been able to keep up with demand for Smartside and is sold out by the end of 2022. New capacity is being added currently which will support future growth.
Between 2015 to 2022, Smartside EBITDA increased from around US$100 million to a run rate approaching US$400 million. We believe Smartside has many years of strong profitable growth to come (see Figure 12).
Imagine being offered to buy a business. This business breakeven in a down year making an operating profit of a few hundred million dollars in a normal year, and in an exceptional period in 2021 made around US$1.5 billion profit. The person offers to sell you the business for nothing. This is the current investment opportunity for Louisiana Pacific. In addition to owning Smartside, it also owns the second largest oriented strand board business in North America and a successful woods product business in South America. The price of OSB is exceptionally volatile but has recently delivered super-normal profits to Louisiana Pacific, enabling management to buy back 45% of shares on the issue while maintaining net cash. At Louisiana Pacific’s current share price, we are paying the bottom end of fair value for Smartside and getting the OSB business practically for nothing.”
8. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 87
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. Berkshire Hathaway bought Taiwan Semiconductor Manufacturing Company Limited stock in the third quarter of 2022 with 60 million shares worth $4.1 billion. This makes up 1.39 % portion of its total investment. On January 12, Taiwan Semiconductor posted earnings for the fourth quarter of 2022, reporting earnings per share of $1.82, beating the analyst’s estimate of $1.77. The company’s revenue of $19.93B, however, missed analyst’s estimate of $20.92B. Despite this, the revenue saw a YoY increase of 26.6%.
At the end of the third quarter of 2022, 87 hedge funds in the database of Insider Monkey held stakes worth $13.2 billion in Taiwan Semiconductor Manufacturing Company Limited, compared to 72 in the previous quarter worth $9.2 billion.
In its Q3 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited was one of them. Here is what the fund said:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain the conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”
7. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 74
Occidental Petroleum Corporation (NYSE:OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Berkshire Hathaway bought Occidental Petroleum Corporation stock in the first quarter of 2022. The holding stood at 194.4 million shares worth $11.9 billion at the end of the third quarter of 2022. This makes up a 4.03 % portion of its total investment.
On January 24, analyst Morgan Stanley maintained a Hold rating on Occidental Petroleum stock and reduced the price target to $71 from $74.00.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based firm Berkshire Hathaway is a leading shareholder in Occidental Petroleum Corporation with 194.4 million shares worth more than $11.9 billion.
In its Q3 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation was one of them. Here is what the fund said:
“Our top-performing stocks in the quarter include Occidental Petroleum. Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum, was one of the standouts. Up through the bear market came a “bubblin’ crude!”
6. Paramount Global (NASDAQ:PARA)
Number of Hedge Fund Holders: 40
Paramount Global (NASDAQ:PARA) operates as a media and entertainment company worldwide. Berkshire Hathaway bought Paramount Global stock in the first quarter of 2022. The holding stood at 91.2 million shares worth $1.7 billion at the end of the third quarter of 2022. This makes up 0.58 % portion of its total investment.
At the end of the third quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Paramount Global, compared to 42 in the previous quarter worth $2.6 billion.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Paramount Global (NASDAQ:PARA) with 91 million shares worth more than $1.7 billion.
In addition to Apple Inc., Bank of America Corporation, and American Express Company, Paramount Global (NASDAQ:PARA) is one of the top stocks that elite investors are interested in as the market recovers from a macro slowdown.
5. Celanese Corporation (NYSE:CE)
Number of Hedge Fund Holders: 36
Celanese Corporation (NYSE:CE) a technology and specialty materials company, manufactures and sells high-performance engineered polymers in the United States and internationally. Berkshire Hathaway bought Celanese Corporation stock in the first quarter of 2022. At the end of the third quarter of 2022, this holding comprised 9.7 million shares worth $877.2 million. This makes up 0.29 % portion of its total investment. On November 3, Celanese Corp announced its third-quarter earnings with earnings per share of $3.94, missing the estimates by $0.03, while the revenue was $2.3 billion, up by 1.3% year-over-year, beating estimates by $40 million.
On January 5, Barclays analyst Michael Leithead maintained an Overweight rating on Axalta Coating Systems stock and increased the price target to $30 from $28, noting that the chemicals industry is near the end of a cycle of negative earnings revisions and that Chinese demand is likely to bottom in Q1 of 2023.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Celanese Corporation with 9.7 million shares worth more than $877 million.
In its Q3 2022 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Celanese Corporation was one of them. Here is what the fund said:
“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).
Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of its business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”
4. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 42
Ally Financial Inc. (NYSE:ALLY) is a digital financial services company, that provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. Berkshire Hathaway bought Ally Financial Inc. in the first quarter of 2022. At the end of the third quarter of 2022, this holding comprised 30 million shares worth $834.9 million. This makes up 0.28 % portion of its total investment. On January 20, 2023, Ally Financial Inc. posted their earnings for the fourth quarter, reporting earnings per share of $0.83, missing the analyst’s estimate by $-$0.07. The company’s revenue was $2.20B, beating the analyst’s estimate by $143.15M.
On January 2, BMO Capital analyst James Fotheringham maintained a Market Perform rating on Credit Acceptance stock and increased the price target to $380 from $360, noting the company’s fourth-quarter earnings beat.
At the end of the third quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Ally Financial Inc., compared to 42 in the preceding quarter worth $2.3 billion.
In its Q3 2022 investor letter, Moon Capital Management, an asset management firm, highlighted a few stocks and Ally Financial Inc. was one of them. Here is what the fund said:
“We recently purchased shares of Ally Financial Inc., the world’s largest digital-only bank. Ally’s legacy dates back more than 100 years when it was originally launched as GMAC, the in-house financing arm of General Motors. The company was spun out from GM and rebranded as Ally more than a decade ago but has retained an automotive focus on the lending side, where it holds the largest position in prime auto lending.
Since the spinoff, Ally has transformed from an auto loan company into a comprehensive, independent finance provider for borrowers and savers of all types. The company has completely restructured the liability side of its balance sheet and has created a deposit-gathering engine that is now more than 85 percent deposit funded. (Compared to issuing traditional corporate debt, deposits are a significantly less expensive capital source for banks.)
Due to the lower overhead associated with the digital bank’s lack of brick-and-mortar locations, the bank produces one of the best efficiency ratios in the industry. This low-cost position, combined with a relatively high loan portfolio yield of approximately 6.75 percent, has helped the company earn net interest margins well above those of many leading banks. These high margins translate into high returns on equity, which the company targets at 16-18 percent over the medium term. (Actual ROE in 2021 was 24 percent. When the company came public in 2014, its ROE was a paltry four percent.).read more
3. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 85
Citigroup Inc. (NYSE:C) is a diversified financial service holding company that provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. Berkshire Hathaway bought Citigroup Inc. stock in the first quarter of 2022. This holding, at the end of the third quarter of 2022, comprised 55.2 million shares worth $2.3 billion. This makes up 0.77 % portion of its total investment. On January 13, 2023, Citi Group Inc. posted their earnings for the fourth quarter, reporting earnings per share of $1.16, missing the analyst’s estimate by -$0.04. The company’s revenue was $18.01B, beating the analyst’s estimate by $3.35M.
On January 17, BofA analyst Ebrahim Poonawala maintained a Buy rating on Citigroup Inc. stock and increased the price target to $60 from $52, noting the management team’s efforts in navigating a year of exceptional volatility, building capital, executing the exit from certain consumer businesses, and largely adhering to the strategic plan outlined in last year’s investor day.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Citigroup Inc. with 55.2 million shares worth more than $2.3 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Citigroup Inc. was one of them. Here is what the fund said:
“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”
2. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 42
HP Inc. (NYSE:HPQ) provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. Berkshire Hathaway bought HP Inc. in the first quarter of 2022. At the end of the third quarter of 2022, this holding was worth 104.5 million shares worth $2.6 billion. This makes up 0.87 % portion of its total investment. On November 22, the company posted their earnings for the fourth quarter of 2022, reporting earnings per share of $0.85, beating the analyst’s estimate by $0.01. The company’s revenue was $14.8 billion, beating the analyst’s estimate by $120 million.
On January 9, Bernstein analyst Toni Sacconaghi maintained a Market Perform rating on HP Inc. stock and reduced the price target from $30 to $29, noting that the IT hardware industry as a sector is facing structural challenges and advises investors to focus on names that offer appealing valuations, clear earnings visibility, and a proven history of strong execution during a year of ongoing macroeconomic uncertainty.
At the end of the third quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in HP Inc., compared to 35 in the preceding quarter worth $3.7 billion.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in HP Inc. with 205,534 shares worth more than $5.5 billion.
1. Markel Corporation (NYSE:MKL)
Number of Hedge Fund Holders: 32
Markel Corporation (NYSE:MKL) a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, the rest of Europe, Canada, the Asia Pacific, and the Middle East. Berkshire Hathaway bought Markel Corporation stock in the first quarter of 2022. This holding, at the end of the third quarter of 2022, was worth 647,611 shares worth of $506.99 million. This makes up 0.17 % portion of its total investment. On February 1, 2023, Markel Corporation posted its earnings for the fourth quarter, reporting earnings per share of $25.57, beating the analyst’s estimate by $7.53. The company’s revenue was $4.21B, beating the analyst’s estimate by $796.10M.
On December 22, Janney Montgomery Scott analyst Robert Farnam maintained a Buy rating on Markel stock and a $1,550 fair value estimate, noting that Markel’s main business involves offering specialty insurance products to niche markets that are often neglected or disregarded by other insurance companies.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Citigroup Inc. with 467,611 shares worth more than $506.99 million.
In its Q4 2022 investor letter, Giverny Capital, an asset management firm, highlighted a few stocks and Markel Corporation was one of them. Here is what the fund said:
“The market really punished growth stocks that stopped growing, even if only temporarily. We own several businesses with long-term track records of compounding their earnings at double-digit rates, that trade for less than 15 times consensus estimates of 2023 earnings. Our insurers Markel Corporation and Berkshire Hathaway also trade for about 15 times their expected 2023 operating profit after we back out the value of their large portfolios of common stocks.
Not so long ago, a PE multiple of 15x was not considered inexpensive. But the current PE multiple for the overall stock market remains 17x 2023 estimates and the risk-free rate of return on 10-year US Treasuries is below 4%. I like our inexpensive growers more than either of those alternatives.
At the top of our performance list, Progressive Corp. rose 26% for the year as it generated outstanding results relative to other large auto insurers. Markel and Berkshire Hathaway rose modestly. The three companies compete in diverse lines of insurance, but they all benefit from rising rates for property coverage after an extended period of weather catastrophes, rising jury awards in lawsuits and inflated loss costs. Our insurers tend to be careful underwriters, so their profitability rises with rates. Our insurers also benefit from rising interest rates because they tend to invest premiums paid by customers into fixed-income securities until they pay claims.”
You can also take a peek at 15 Best Cybersecurity Stocks To Buy and 25 Smartest Countries in the World.
Suggested Articles:
- 15 Most Advanced Countries in the World
- 10 Stocks Under $50 To Buy
- 15 Most Famous Investment Gurus of All Time
This article is originally published at Insider Monkey.
