Renowned investor Warren Buffett recently disclosed his latest portfolio update for the first quarter of 2024. The update revealed that Berkshire Hathaway’s sales exceeded purchases for the eighth consecutive quarter, indicating a lack of potential investments meeting its criteria. Buffett’s portfolio now consists of 41 stocks worth more than $331 billion, slightly down from the previous quarter’s value of $352 billion. This decrease may be due to increased cash reserves that have reached a record of $190 billion.
In a surprising move, Buffett sold his entire stake in Global Paramount and Horsepower, and reduced his Apple holdings by 3%. Despite the reduction, Apple stock remains Berkshire’s largest holding, representing nearly 40% of the company’s market cap. Additionally, Buffett sold smaller amounts of shares in Chevron, Louisiana-Pacific, and Sirius XM Holdings.
Buffett also made significant investments in several other stocks, demonstrating his optimism about those companies. Three key stocks in Buffett’s portfolio that stand out are Chubb, Liberty Media SiriusXM Sr C, and Bank of America.
Chubb, the world’s largest publicly traded property and casualty insurance company, received a substantial investment of over $6.7 billion from Berkshire Hathaway in the first quarter of 2024. This investment boosted Chubb’s stock price by over 8%, as Buffett increased his stake by 28.97%. Chubb has a strong global brand, disciplined underwriting, and a diversified portfolio of insurance products, making it an attractive defensive investment.
Liberty Media SiriusXM Sr C, in which Buffett has increased his holdings, has shown promising growth in its first-quarter earnings. With a low P/E ratio compared to industry peers and strong financial performance, Liberty Media SiriusXM Sr C is one of Buffett’s solid picks for long-term growth potential.
Bank of America remains a steadfast holding in Buffett’s portfolio, dating back to his initial $5 billion investment during the 2011 debt crisis. BAC is the second-largest asset holder in the U.S., with a strong capital position and steady income from its large customer base. Sell-side analysts have set a price target projecting a 17% increase in BAC’s value over the next 12 months.
Overall, Buffett’s latest portfolio update reflects his strategic investment approach, emphasizing long-term growth potential and stability. His selections of Chubb, Liberty Media SiriusXM Sr C, and Bank of America showcase his confidence in these companies’ ability to deliver value over time.
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https://investorplace.com/2024/05/three-must-have-stocks-in-the-oracles-arsenal/
