What are Warren Buffett's favorite stocks?
Buffett talked in last year's letter about two stocks “that leave us comfortable” and that he expects Berkshire Hathaway to own indefinitely: Coca-Cola KO and American Express AXP. And not surprisingly, Berkshire maintained its positions in these stocks in 2023.
Warren Buffett made his fortune by investing in individual companies with great long-term advantages. But his top recommendation for anyone is to buy a simple index fund. Buffett's recommendation underscores the importance of diversification.
Bought: SiriusXM Holdings Inc.
Buffett has been in and out of SiriusXM in the past, buying back in 2016 and selling out five years later only to buy back in the third and fourth quarters of 2023.
Key Takeaways
Warren Buffett's Berkshire Hathaway (BRK.A) commands the No. 1 position, with an impressive stock price of over half a million dollars.
| Company | Dividend Yield |
|---|---|
| Arbor Realty Trust Inc. (ABR) | 13.18% |
| Chicago Atlantic Real Estate Finance Inc (REFI) | 12.88% |
| Dynex Capital, Inc. (DX) | 12.67% |
| Medifast Inc (MED) | 12.09% |
Moreover, Buffett's most well-known investment strategy is long-term value investing. He chooses stocks with strong fundamentals based on their intrinsic value and keeps them for a long time. He says that a stock is not worth buying if you can't keep it for 10 years. Warren Buffett is also against diversification.
However, there's no doubt whatsoever that Apple ranks as Buffett's biggest moneymaker in 2023. Nearly half of Berkshire's equity investments are in Apple stock (48.5%, to be precise). Shares of the tech giant have skyrocketed more than 50% this year.
Warren Buffet's 2013 letter explains the 90/10 rule—put 90% of assets in S&P 500 index funds and the other 10% in short-term government bonds.
- Buy Companies at Bargain Prices. ...
- Be Patient. ...
- Go Against Conventional Wisdom. ...
- Stick with What You Know. ...
- Be Self-Confident. ...
- Buy Companies with Competitive Advantages. ...
- Believe in America. ...
- Which of these lessons do you apply to your own investing?
By all accounts, Buffett lives a frugal and simple lifestyle, and as such chooses to drive a 2014 Cadillac XTS.
Does Warren Buffett own Dairy Queen?
Warren Buffett's Berkshire Hathaway acquired Dairy Queen for nearly $600 million in 1998. Dairy Queen CEO Troy Bader told Insider that Berkshire's ownership lets him invest for the long run. Bader explained how Dairy Queen has dealt with the pandemic, inflation, and new customer demands.
The financial health and growth prospects of BRK. B, demonstrate its potential to underperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D.
Netflix is the superstar when it comes to only going up. Shares of the video streamer not only gained each of the past five years and in 2020, they're the only S&P 500 stock to rise every single month this year.
| Name | 3Y Return | Net Profit 3Y Change % |
|---|---|---|
| Reliance Industries Ltd | 59.65% | 85.78% |
| Tata Consultancy Services Ltd | 37.45% | 30.38% |
| ICICI Bank Ltd | 65.54% | 207.01% |
| Infosys Ltd | 31.59% | 44.89% |
| Company (Ticker) | Forward P/E Ratio |
|---|---|
| Fidelity National Information Services (FIS) | 14.0 |
| Humana (HUM) | 14.8 |
| Intuitive Surgical (ISRG) | 52.8 |
| Lear (LEA) | 7.4 |
co*ke's 2023 performance and latest dividend raise validate why co*ke remains a top-tier dividend stock to buy and hold for decades to come.
- Exxon Mobil XOM.
- Verizon Communications VZ.
- Philip Morris International PM.
- PepsiCo PEP.
- Altria Group MO.
- Bristol-Myers Squibb BMY.
- Medtronic MDT.
- Gilead Sciences GILD.
| Stock | Dividend yield |
|---|---|
| OneMain Holdings Inc. (OMF) | 8.6% |
| Duke Energy Corp. (DUK) | 4.5% |
| Southern Co. (SO) | 4.1% |
| Newmont Corp. (NEM) | 5% |
- Big ideas.
- Rule 1 - Don't lose money.
- Rule 2 - Don't forget rule 1.
- Rule 3 - Always have a margin of safety.
- Rule 4 - Find companies with good financials.
- Rule 5 - Find companies with good earnings.
- Rule 6 - Look for consistently high return on equity.
Buffett often makes use of the Rule of 72, a straightforward formula to estimate the time required for an investment to double in value. This rule is determined by dividing 72 by the annual rate of return.
Which broker does Warren Buffett use?
Meet John Freund: Warren Buffett's Broker Of 30 Years And The Citi Banker Who Alerted Him To Sokol's Deception. John Freund is not just Warren Buffett's broker of 30 years.
- Nvidia Corp. (ticker: NVDA)
- Apple Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Alphabet Inc. (GOOG, GOOGL)
- Tesla Inc. ...
- AllianceBernstein Holding LP (AB)
- Walt Disney Co. ...
- PayPal Holdings Inc.
- SoftBank Group Corp. (OTC:SFTBY)
- Palantir Technologies Inc. (NYSE:PLTR)
- CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
- Tesla Inc. (NASDAQ:TSLA)
- Palo Alto Networks Inc. (NYSE:PANW)
- Nvidia: 239% -- technology.
- Meta Platforms: 194% -- communications services.
- Royal Caribbean: 162% -- consumer discretionary.
- Builders FirstSource: 157% -- industrials.
Buffett's Two Lists is a productivity, prioritisation and focusing approach where you write down your top 25 goals; circle your 5 highest priorities; then focus on those 5 while 'avoiding at all costs' doing anything on the remaining 20.
