If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans that are investors. Known for his long buy and hold strategies and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the world.
As we start April and the second quarter, investors will be relieved to know that historically April is one of the best months of the year. After a very rocky first three months of the year, that is probably music to everybody’s ears. Given that many fund managers and retail investors will be looking to reset portfolios for the new quarter, we decided to look at the five biggest holdings at Berkshire Hathaway. They all make sense now for investors looking for a degree of safety and for companies that can perform in a rising interest rate and inflationary environment and that pay reliable dividends.
While all five are top Warren Buffett holdings, and all are Buy rated at major Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Apple
It is almost hard to comprehend that the legacy technology leader makes up a stunning 40% of the Berkshire Hathaway portfolio. Apple Inc. (NASDAQ: AAPL) designs, manufactures and markets consumer electronics and computers, and it has developed its own proprietary iOS and Mac OS X operating systems and related software platform/ecosystem.
This technology giant has consistently churned out new products that the public loves, and an inexpensive iPhone is one of the newest offerings. Revenues are principally derived from the iPhone line of smartphones, hardware sales of the Macintosh family of notebook and desktop computers, iPad tablets, iPod portable digital music players and the Apple Watch. The company also realizes revenue from software, peripherals, digital media and services.
Shareholders receive a 0.50% dividend. J.P. Morgan has a $210 price target on Apple stock. The consensus target is $193.53, and shares closed trading on Thursday at $174.61 apiece.
Bank of America
Warren Buffett owns a stunning 1.1 billion shares of Bank of America Corp. (NYSE: BAC), which posted very solid fourth-quarter results and, like other banks, it welcomes interest rate increases.
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