A Breakdown Of Warren Buffett’s 2021 Portfolio

it'd be hard to argue that warren buffett is not the greatest investor of all time i think we can all agree that he is and one of the great things about this is that warren buffett is still alive today with a portfolio bigger than ever and because of financial regulations he has to disclose his portfolio to the public which means all of us investors get to look at how the greatest investing mind is investing in this day and age with this video i want to break everything down piece by piece and show you the exact stocks that buffer owns to navigate these weird market conditions that we are in warren buffett's largest position by far with his investing company berkshire hathaway is apple apple makes up 47.8 of the entire stock portfolio and he owns 944.3 shares of the company altogether that's worth 109 billion dollars that's a lot of money in one stock even on buffett's terms apple i know you guys already know generally what the company does we'll show you a bit deeper though so the main thing that the company sells is obviously the iphone one of the most popular selling phones in all of history that makes up 41 of their revenue but they also sell the imac and the ipad which makes up 14 and 10.5 percent of the revenue respectively then of course you've got the slightly newer segments which is the wearables and home accessories that makes up 12.2 percent and lastly you've got the services side to their business so that's things like itunes the app store apple music apple pay and all of that this makes up 22.5 of revenue so that gives you a bit of an idea of apple the company as a whole let's take a quick look at the stock now so this is one of the biggest companies in the world right now it's valued over two trillion dollars that is big the price of an individual stock if you're looking to buy is 123 dollars a share with earnings of 3.28 the stock has rallied very nicely over the past couple of years it's gone from 24.16 to over five times the amount today i think it's a smart investment from buffett it's hard to argue that it's not apple has such a strong business model people know it all around the world and they love their products let's just say i don't see apple of all companies failing over the next three to five years moving on to his second largest position that's bank of america one of the biggest banks in america it makes up 10.6 percent of his entire stock portfolio valued at over 24.3 billion dollars the ticker symbol for that stock by the way is bac so bank of america what do they do they help with loans banking services investing asset management and other financial related roles a very complicated business but buffett knows them well price wise they're affordable to pretty much any investor unless you're broke they sell for 29 a share right now and in return they generate earnings of two dollars a share that gives them quite a low p e ratio in this market anyway of just 14.3 also another nice thing about the stock is they pay a bit of a dividend an annual yield of 2.5 percent which is pretty decent this is an interesting position for buffett as a lot of you know he's been into banking stocks for a long time now the price is obviously cheap however in these market conditions the banking business model will be tested and time will tell if this is a smart investment to hold this has got to be one of my favorite all-time stocks and it was actually buffett who introduced me to it 8.6 percent of berkshire's portfolio is in the company coca-cola in my humble opinion it's one of the best drinks of all time buffer he owns exactly 400 million shares worth 19.7 billion dollars that's a lot of money again a pattern that you'll start to notice with a lot of buffett's main stocks is they operate simple business models coca-cola you don't have to be einstein to understand their model they distribute drinks all around the world and they sell it at various outlets some of their billion dollar brands include coke obviously fanta sprite schweppes simply orange smart water and a range of others and one of the things that stands out about coca-cola stock is their dividend they pay a dividend yield of 3.1 percent and the great thing about this is they've increased it for 58 consecutive years making it one of the safest dividend paying stocks american express is not a bank but it's a financial services company quite old founded in 1850 one of the patterns that you should notice while going through buffett stocks is that he loves financial oriented companies this particular one american express makes up six point six percent of his portfolio over at berkshire hathaway he owns 151 million shares of them with a total value of 15.2 billion dollars not too much to stay on this company they're obviously known for the charge card credit card and travelers check businesses the stock has had an interesting couple of years up until 2020 they were going great up over 150 percent from the start of 2016 and then of course we had those rough economic times the stock got hit hard but has rebounded relatively nicely craft heinz this is another company that has had tough times over the past couple of years and when i say tough i mean really tough as i'll soon show you so it's a big position of course for buffett he owns 325.6 million shares worth a total of 9.7 billion dollars all in all that's 4.3 percent of his portfolio so craft heinz is a food company i'm sure you guys know that it's actually the third largest food and beverage company in north america with 25 billion dollars in annual sales you know if we take a look they've got some big name brands over here watty's kool-aid jell-o philadelphia golden circle it's no wonder they've sold 25 billion dollars worth of items however they have been struggling as a stock at one point in time they were selling for over 90 dollars a share and since then they've gone down dramatically and the reason for that is poor earnings as you can see they've lacked innovation with their products and the margins that they've made have not been good so price is down big however you do have some investors saying that this is an opportunity they pay a really nice dividend right now they're going for a cheap price and the business model is fine so that's up to you to decide if it's a buy or not okay these next two we're going to group together they're both financial stocks not the most interesting to talk about if i'm honest with you so moody's corporation that makes up 3.1 percent of the portfolio ticker symbol mco and us bang corp ticker symbol usb that makes up 2.1 percent so again with these banking stocks it's kind of like the double edged sword prices are very cheap relative to other stocks however their business model is going to be tested in these tough economic conditions risk reward that's what investing all comes down to okay coming in at the eighth largest position is charter communication stock charter is a cable operator and broadband services company in the united states they provide video internet and voice services to approximately 26.2 million residential and business customers it's a lot of people the stock in terms of price is up there it sells for above 650 dollars a share and it's done really well for buffer over the past couple of years going up from 260 dollars in 2018 to the price that it is today a very nice return at the moment it makes up 1.4 percent of the total portfolio with a position value of 3.3 billion dollars okay two more stocks to go now guys the vita healthcare buffer's ninth largest position we're starting to get into the very small amounts now it makes up just 1.4 percent of buffett's entire portfolio berkshire owns 127 million shares of this stock worth 3.1 billion dollars i think it's a smart move from buffett to expose his portfolio to a bit of healthcare healthcare is a sector which does better than most in recessions and it does fine in pretty much all economic conditions why because people still need health care no matter what the economy is doing the stock has done well for buffer over the years he bought it back in 2012 and since then it's gone up a nice 150 ish percent as of right now the stock sells for just over a hundred dollars a share with a reasonable p e ratio of 16.2 okay this is the last stock that we're gonna go through and then i'm gonna sum up his portfolio wells fargo you guys know wells fargo they're the bank fourth largest in the usa actually berkshire they own 127 million shares worth three billion dollars making up 1.3 of the portfolio as i said before buffer owns quite a lot of these financial related stocks around 26 of his portfolio is made up of financials 51 percent is information technology and that's mainly apple 13 is consumer staples like coca-cola and craft heinz and four and four percent is consumer discretionary and health care stocks so what i've done here is i've showed you his 10 biggest stock positions these make up 87 of his entire portfolio the rest of the stocks owned the other 13 percent are very small positions pretty much all of them are under one percent and these include stocks like general motors mv the pharmaceutical company visa amazon the e-commerce company snowflake and a range of others but the other thing i need to mention is he's got a big cash pile on him as well over at berkshire hathaway his investing firm they have 147 billion dollars of cash on them just waiting to be deployed and my opinion is i think they're waiting for stocks to get cheaper before they deploy that cash and make some big moves in the market either way i think it's such a privilege that we can see into the portfolio of one of the greatest ambassadors of all time and i hope you enjoyed the video

Channel: Cooper Academy

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Keywords: warren buffett portfolio, warren buffett investing portfolio, warren buffett, berkshire hathaway portfolio, warren buffett 2021, warren buffett stocks, berkshire hathaway, warren buffett portfolio 2021, warren buffett stock picks, warren buffett portfolio strategy, warren buffett portfolio breakdown, warren buffett stock market, warren buffett investment, warren buffett investment strategy, warren buffett portfolio diversification, cooper academy

Id: jjXT3xTNZ4I

Length: 12min 36sec (756 seconds)

Published: Fri Jan 01 2021