In this article, we discuss Warren Buffett’s stock portfolio and his recent buys. If you want to read about some more stocks in the Buffett portfolio, go directly to Buffett Stock Portfolio: Warren Buffett’s 5 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. (NYSE:JEF), compared to 29 in the preceding quarter worth $425.5 million.
Just like Apple Inc. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC), and American Express Company (NYSE:AXP), Jefferies Financial Group (NYSE: JEF) 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. (NYSE:JEF) was one of them. Here is what the fund said:
“Jefferies Financial Group Inc. (NYSE:JEF) 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 (NYSE:LPX) 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 (NYSE:LPX) was one of them. Here is what the fund said:
“We have invested in Louisiana-Pacific Corporation (NYSE:LPX) 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 (NYSE:TSM) 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 (NYSE:TSM), 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 (NYSE:TSM) was one of them. Here is what the fund said:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 (NYSE:OXY) 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 (NYSE: OXY) 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 (NYSE:OXY) 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 (NYSE:OXY) was one of them. Here is what the fund said:
“Our top-performing stocks in the quarter include Occidental Petroleum (NYSE:OXY). 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 (NYSE:OXY), 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 (NASDAQ:PARA) 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 (NASDAQ:PARA), 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. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC), and American Express Company (NYSE:AXP), Paramount Global (NASDAQ:PARA) is one of the top stocks that elite investors are interested in as the market recovers from a macro slowdown.
Click to continue reading and see Buffett Stock Portfolio: Warren Buffett’s 5 Recent Buys.
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Disclosure. None. Buffett Stock Portfolio: Warren Buffett’s Recent Buys is originally published on Insider Monkey.