For those who always follow or idolize Warren Buffett, you must know that he will issue a letter to his shareholders every year.
What does the letter contain? Basically, it is a report on Berkshire Hathaway's performance over the past year, including financial and investment results.
But what steals the most attention are the stocks in his portfolio!
Buffett owns more than 50 stocks, but those investments aren't as diverse as you might think. In fact, as much as 75% of his portfolio is invested in just these five stocks by 2022!
Apple Inc, 41.4%
Bank of America Corporation, 10.8%
Chevron, 8.1%
American Express, 8%
Coca-cola, 7.1%
Buffett is said to have bought the dip in Apple shares in the fourth quarter by acquiring an additional 333,856 shares.
This makes holdings of Apple stock number 1 in Berkshire's portfolio by market value and number 2 by number of shares.
One word from Buffett is that his investments are not based on stock selection but based on business.
Berkshire will invest in businesses with durable and reliable economic characteristics.
In addition to the 5 stocks, Buffett also holds interests in Kraft Heinz, Petroleum Occidental, Nu Holdings, HP and Paramount Global.
Although Berkshire Hathaway's return on value increased modestly by 12 months, it was materially better than the return of the S&P 500 index (including dividends), which was -18.1%.
Since 1964, the company's total return has increased 3,787,464% (19.8% per year) compared to the S&P 500 index's 24,708% (9.9% per year).
