There are not many money managers who can attract the attention of professional investors Berkshire Hathaway‘s (NYSE: BRK.A)(NYSE: BRK.B) The billionaire CEO, Warren Buffett. Since “Oracle of omaha” called the CEO of six decades ago, his BRK.A’s (BRK.A) shares led a cumulative return of approximately 5650,000 %, as of the closing bell on February 3. .
Looking at the long -term Buffett’s long success, investors closely monitor any stock he and his best advisers, Todd Combs, Ted and Yusr, buy and sell. After all, the Oracle of omaha’s Coatetails has proven completely profitable to the patient’s investors.
Berkshire Hathaway, CEO Warren Buffett. Photo source: Motley deception.
What could have been to say was the largest factor that helped Pavit to operate circles throughout Wall Street A tendency to focus the portfolio. Although Buffett oversees the 497 billion dollars of $ 297 billion in Berkchire Hathaway, he suffers from a long time to put more capital to work in his best ideas.
Currently, nearly two -thirds of $ 195 billion of $ 297 billion in Berkshire’s assets of $ 297 billion can be tracked to five wonderful shares.
For some time, technology shares apple(Nasdaq: Aapl) It was the largest contract in Warren Buffett in Berkshire Hathaway. Although the President of Berkshire oversees the sale of more than 615 million shares from Apple from October 1, 2023 to September 30, 2024, 300 million shares are still owned by Purkshire equivalent to $ 68.4 billion.
Apple’s success over the years was driven by its creation. This includes the material products that it loves its brand with consumers, such as the best -selling iPhone (in the United States), as well as progress in the company outside the box. For example, CEO Tim Cook leads Apple to become a company -based company. Emphasis on subscription services should lead to more stable and cash sales, and raise the company’s operating margin over time.
To build on this point, Apple is a well -recognized and highly recognized brand that has a generally sincere customer base. Buffett may not fully understand the peculiarities and generalities of how iPhone works, but he previously saw that he understood the customers and behaviors purchase habits.
Puffett is also able to estimate the leading arrows for Apple. Including Apple’s latest quarterly report, the company will close at 750 billion dollars in the total repurchase since the start of the re -purchase program in 2013. These re -purchases have a decisive positive impact on its profits per share (EPS).
Although Oracle of Omaha did not buy one share of the credit service provider American Express(NYSE: Axp) Long-he is the second oldest in Berkshire (since 1991)-he has made his way to second place in the Hathaway Berkshire portfolio and is now the sixth invested assets.
What makes Amex, as known American Express, like the private company is its ability to profit on both sides of the transaction counter. In the United States, this is the third largest payment processor through the volume of a credit card purchase network. Help in facilitating transactions earns it a predictive fee from merchants and allows AmeX to take advantage of long economic expansions.
But American Express is also a lender. Although not all the processing processors are dual and working as lenders, the AmeX decision to provide credit lines for personal and men’s business card holders gives them the ability to collect annual fees and/or benefits income.
Historically, AmeX had a talent to attract higher income customers. Although the importance is not immune to economic contraction, it is less likely than the normal return to change spending habits or fail to pay their bills during the periods of simple turmoil. By focusing on the wealthy people, American Express can reduce the stagnation blow.
Photo source: Getty Images.
Financial data It coincides with Warren Buffett’s favorite sector to put his company’s capital at work. While Buffett got rid of more than 266 million shares Bank of America(NYSE: BAC) Shares since July 17, 2024, still represents nearly eighth of the invested assets.
The beauty of bank stocks like Bofa is that they are patrol. While three quarters of all the recession since the end of World War II have been resolved in less than a year, most of the economic expansion periods last for several years. This contrast allows stagnation and periods of expansion Bouva to develop the loan portfolio wisely over time.
Moreover, the Bank Of America is the most sensitive one of the largest banks in America through total assets. When the Federal Reserve was scrambling for the prevailing inflation rate under control and increasing the rate of federal funds quickly by 525 basis points between March 2022 and July 2023, no bank at the Money Center benefited more than Bofa. With the country’s central bank now on eggshell as it tries to reduce interest rates, the Bank of America will have a wide time to generate very profitable loans.
Do not deduct the Bofa’s Capital-RUTURN program, too. The annual basis profits of $ 1.04 per share must be generated approximately $ 797 million to Hathaway’s Purchchire in 2025. In addition, Bofa spends a beautiful penny on shares re -purchases for most years.
None of the 44 shares was honored at Buffett Portfolio in Berkshire Hathaway, where fixtures were longer than giant consumer giant coca cola(Nyse: ko). This represents the thirty -seventh year in a row, as it was part of the Pavite wallet, and it is grown to the fourth largest in Berkshire.
What Oracle Omaha appreciates more than Coca-Cola is the ability to predict operating results. Since it has continuous operations in all countries with the exception of three countries (Cuba, North Korea and Russia), Coca-Cola is able to take advantage of the higher growth opportunities in emerging markets, all with the generation of consistent cash flow in developed countries.
Coca-Cola also understands its customers well. The marketing team adopted social media and artificial intelligence channels to allocate ads for younger consumers. Meanwhile, it has more than a century of floors history, including previous holiday ties, to rely on it as a way to communicate with its mature customers. Put this together and you have a company that was the most selected brand of retail shelves for 12 consecutive years, according to the “fingerprint” survey in Kantar.
To maintain this topic, Coca-Cola’s Capital-RUTURN is at another level. Although no public company can match the Apple in the reservation section, a handful of companies can only top the Coke series to increase its basic annual payment for 62 years, respectively (and count).
The Fifth Fifth shares represent the Apple, American Express, Bank of America and Coca-Cola, two-thirds of the 297 billion dollar Berkchires Chevron(NYSE: CVX).
Although Chevron is born is the highest margins of the upper drilling sector, and therefore it is useful when the immediate price of raw oil and natural gas climbs, the “integrated” side of the operating model is of utmost importance. Chevron oversees the lines of transmission, chemical plants, and refineries, which all can provide a predictable cash flow and help compensate for the decreases in the immediate price of raw oil.
In addition to being well surrounded, Chevron has steadily increased its production over time. The CEO of CEO Mike Worth believes that the production of the company’s pelvis will grow by 9 % to 10 % in 2025, where capital expenditures (CAPEX) come at an estimate of the point of $ 15 billion, which is less than $ 16.4 billion in Capex For 2024, be a recipe for improving operating cash flow and higher profits.
Cherry’s cherry is that, too, it also enhances a great program to return to the capital. Its Board of Directors approved the 75 billion dollars re -purchase program in 2023, and the company announced the thirty -eighth annual increase, respectively, in its profits last week.
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*The stock consultant dates back from February 3, 2025
Bank of America and American Express are advertising partners in Motley Lie. Sean Williams He has positions in Bank of America. Motley Fool has positions in Apple, Bank of America, Berkshire Hathaway and Chevron. Motley deception has Disclosure.
