55% of Warren Buffett's $382 Billion Portfolio Is Invested in These 2 Stocks
The period from 2010 to 2021 saw many growth stocks deliver mind-boggling gains, fueled by the availability of cheap capital. However, the landscape changed in 2022 with soaring inflation forcing the Federal Reserve to push up interest rates, which in turn increased the cost of capital. In response to this tough macro environment, investors are now increasingly prioritizing return-on-capital metrics and are shifting to Warren Buffett's time-tested investment strategy of buying high-quality stocks at an attractive price (value investing).
Class A and B shares of Buffett's conglomerate Berkshire Hathaway have gained 24.1% and 22.3%, respectively, in the past year. This is significantly more than the 15% rise recorded by the benchmark S 500 index in the same time frame. Given this backdrop, let's assess whether Buffett's top two investments can prove to be good picks now.
Tech giant Apple (NASDAQ: AAPL) accounts for 46.7% of Berkshire Hathaway's investment portfolio. This is not surprising considering Buffett and the vice chairman of Berkshire Hathaway, Charlie Munger, have a penchant for picking up stocks with a strong management and competitive advantage.
Source Fool.com
Berkshire Hathaway Inc. A Stock
Our community is currently high on Berkshire Hathaway Inc. A with 3 Buy predictions and 0 Sell predictions.
With a target price of 650000 € there is a slightly positive potential of 7.35% for Berkshire Hathaway Inc. A compared to the current price of 605500.0 €.
