Warren Buffett - Berkshire Hathaway Portfolio
Warren Buffett - Berkshire Hathaway Q4 2024 Portfolio
Berkshire Hathaway, a hedge fund managed by Warren Buffett, disclosed 38 security holdings in their SEC 13F filing for the fourth quarter of 2024, with a total portfolio value $267,175,473,000
As of Q4 2024, Warren Buffett’s Berkshire Hathaway portfolio reveals measured adjustments across several major holdings. Below is a detailed overview of the top 10 positions:
1. AAPL – Apple Inc.: 28.12%
2. AXP – American Express: 16.84%
3. BAC – Bank of America Corp.: 11.19%
4. KO – Coca‑Cola Co.: 9.32%
5. CVX – Chevron Corp.: 6.43%
6. OXY – Occidental Petroleum: 4.89%
7. MCO – Moody’s Corp.: 4.37%
8. KHC – Kraft Heinz Co.: 3.74%
9. CB – Chubb Limited: 2.80%
10.               DVA – DaVita HealthCare Partners: 2.02%
1. AAPL – Apple Inc.
- Portfolio Allocation: 28.12%
- Recent Activity: No change reported
- Shares Held: 300,000,000
- Reported Price: $250.42 per share
- Value at Reported Price: $75,126,000,000
Apple remains the largest holding, underscoring Buffett’s enduring confidence in the tech giant. Its ecosystem-driven business model continues to generate substantial revenue from products and services, making Apple a cornerstone of the Berkshire portfolio.
2. AXP – American Express
- Portfolio Allocation: 16.84%
- Recent Activity: No change reported
- Shares Held: 151,610,700
- Reported Price: $296.79 per share
- Value at Reported Price: $44,996,540,000
American Express holds steady, reflecting Buffett’s longstanding belief in the company’s premium brand and loyal customer base. As consumer spending remains robust, American Express benefits from increased card usage and travel-related expenditures.
3. BAC – Bank of America Corp.
- Portfolio Allocation: 11.19%
- Recent Activity: Reduced 14.72%
- Shares Held: 680,233,587
- Reported Price: $43.95 per share
- Value at Reported Price: $29,896,267,000
Bank of America remains a key financial holding but was reduced again this quarter. This move may indicate strategic rebalancing or caution regarding interest-rate environments. Nonetheless, BAC’s large-scale retail and commercial banking operations keep it integral to the portfolio.
4. KO – Coca-Cola Co.
- Portfolio Allocation: 9.32%
- Recent Activity: No change reported
- Shares Held: 400,000,000
- Reported Price: $62.26 per share
- Value at Reported Price: $24,904,000,000
Coca-Cola’s position is unchanged, signifying Buffett’s unwavering faith in this iconic beverage giant. With a global footprint and a strong dividend history, Coca-Cola provides steady income and resilience amid market fluctuations.
5. CVX – Chevron Corp.
- Portfolio Allocation: 6.43%
- Recent Activity: No change reported
- Shares Held: 118,610,534
- Reported Price: $144.84 per share
- Value at Reported Price: $17,179,549,000
Chevron remains a significant energy play, offering diversification through its upstream and downstream operations. Its global scale and consistent cash flow make it a stable component of Berkshire’s portfolio.
6. OXY – Occidental Petroleum
- Portfolio Allocation: 4.89%
- Recent Activity: Added 3.49%
- Shares Held: 264,178,414
- Reported Price: $49.41 per share
- Value at Reported Price: $13,053,055,000
Berkshire increased its stake in Occidental Petroleum, indicating continued confidence in the energy sector. Occidental’s portfolio of oil and gas assets offers potential upside, particularly if global demand remains strong.
7. MCO – Moody’s Corp.
- Portfolio Allocation: 4.37%
- Recent Activity: No change reported
- Shares Held: 24,669,778
- Reported Price: $473.37 per share
- Value at Reported Price: $11,677,933,000
Moody’s retains its place as a key Berkshire holding in financial analytics and credit ratings. Its consistent fee-based revenue model and market leadership provide stability and growth potential over the long term.
8. KHC – Kraft Heinz Co.
- Portfolio Allocation: 3.74%
- Recent Activity: No change reported
- Shares Held: 325,634,818
- Reported Price: $30.71 per share
- Value at Reported Price: $10,000,245,000
Kraft Heinz remains a cornerstone consumer staples investment. While the company continues to navigate changing consumer preferences, its well-known brands and cost-optimization efforts align with Buffett’s value-driven philosophy.
9. CB – Chubb Limited
- Portfolio Allocation: 2.80%
- Recent Activity: No change reported
- Shares Held: 27,033,784
- Reported Price: $276.30 per share
- Value at Reported Price: $7,469,435,000
Chubb, a leading insurer, provides diversification through its global property and casualty operations. The company’s disciplined underwriting and strong capital position make it an attractive holding for Berkshire.
10. DVA – DaVita HealthCare Partners
- Portfolio Allocation: 2.02%
- Recent Activity: No change reported
- Shares Held: 36,095,570
- Reported Price: $149.55 per share
- Value at Reported Price: $5,398,092,000
DaVita remains Berkshire’s primary healthcare holding, focusing on kidney dialysis services. With stable demand in the healthcare space, DaVita offers a defensive counterbalance to the portfolio’s more cyclical investments.
Analysis of Buffett’s Q4 2024 Portfolio Strategy
1. Continued Confidence in Tech and Finance
Apple remains the top holding with no further reductions, emphasizing Buffett’s ongoing belief in the tech leader’s ecosystem. American Express also stands firm, reflecting strong consumer spending patterns and a robust travel sector recovery.
2. Strategic Reduction in Bank of America
The further trimming of Bank of America suggests a measured approach to financial sector exposure, possibly reflecting concerns about interest-rate volatility or a desire to free up capital for other opportunities.
3. Slightly Higher Energy Exposure
While Chevron’s position remained constant, Berkshire increased its stake in Occidental Petroleum. This move underscores Buffett’s positive stance on energy, betting on steady or rising oil demand.
4. Stable Consumer Staples and Healthcare
Positions in Coca-Cola, Kraft Heinz, and DaVita remain relatively unchanged, signifying continued reliance on defensive, demand-driven sectors. These holdings help offset volatility from the tech and financial segments.
5. Maintaining Diversification
With Moody’s (financial services) and Chubb (insurance), Buffett preserves a well-rounded portfolio. The mix of growth-oriented and defensive stocks aligns with Berkshire’s long-standing strategy of balancing risk and reward.
Conclusion
Warren Buffett’s Q4 2024 portfolio underscores a commitment to core holdings like Apple, American Express, and Coca-Cola, while reflecting subtle shifts in financials and energy. The modest reduction in Bank of America and the additional shares of Occidental Petroleum illustrate a strategic realignment to manage both risk and potential upside. Meanwhile, steady positions in consumer staples, healthcare, and insurance provide a foundation of stability, consistent with Buffett’s long-term, value-oriented investment philosophy.
Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.
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Apple, Inc. (AAPL) Stock Analysis
Apple Inc. (NASDAQ: AAPL)
Analysis as of March 26, 2025
1. Company Overview
Apple Inc. is a global technology leader designing, manufacturing, and marketing premium consumer electronics, software, and services. Founded in 1976, Apple’s vertically integrated ecosystem—including hardware (iPhone, iPad, Mac, Apple Watch, AirPods), operating systems (iOS, macOS, watchOS), and a rapidly expanding services portfolio—drives unparalleled customer loyalty and high switching costs.
Key Business Segments
iPhone & Hardware: Represents approximately 48% of total revenue. The flagship iPhone 15 series remains the cornerstone of Apple’s hardware business, complemented by MacBook Air/Pro, iPad Pro, Apple Watch Series 9, and AirPods Pro. Continuous innovation in proprietary silicon (M‑series chips) enhances product differentiation and profitability.
Services: Accounts for roughly 23% of revenue and has grown at a 15% compound annual growth rate over the past three years. Key offerings include the App Store (generating 70% recurring revenue), Apple Music, iCloud, Apple TV+, Apple Fitness+, and Apple Pay. Services boast gross margins above 70%, significantly higher than hardware.
Wearables, Home & Accessories: Contributes around 13% of revenue, driven by category leaders AirPods (estimated 60% market share) and Apple Watch (market share >35%). This segment benefits from high margins and strong attachment rates to Apple’s core ecosystem.
2. Financial Performance
Revenue & Growth
For the trailing twelve months ended December 28, 2024, Apple reported revenue of $395.76 billion, a 2.61% year‑over‑year increase. Services revenue grew 14.8% to $90.21 billion, offsetting modest 1.2% growth in iPhone sales, which generated $189.50 billion.
Analysis: Services continue to drive the company’s top‑line expansion and margin improvement, cushioning Apple against hardware cycle fluctuations.
Profitability
Net income for the period totaled $96.15 billion, down 4.7% year over year, resulting in diluted earnings per share of $6.28 (–2.2%). Apple’s profit margin expanded modestly to 24.30%. Return on equity remains exceptional at 136.52%, underscoring highly efficient capital deployment, while return on assets improved to 22.52%.
Analysis: Elevated operating expenses and supply‑chain costs contributed to a slight decline in net income, but robust margins highlight the durability of Apple’s business model.
Margins
Gross margin expanded to 46.52% (five‑year average: 42.8%), and operating margin rose to 31.75% (five‑year average: 29.5%). EBITDA margin improved to 34.71%, reflecting a favorable mix shift toward higher‑margin services.
Analysis: Margin expansion underscores Apple’s pricing power, operational efficiency, and increasing services penetration.
Cash Flow
Operating cash flow amounted to $108.29 billion (–7.0% YoY), while capital expenditures increased 5.9% to $10.00 billion. Free cash flow totaled $98.30 billion, down 8.0%, enabling $104 billion in share repurchases and $15 billion in dividends over the past year.
Analysis: Strong cash generation supports significant shareholder returns and ongoing investment in innovation.
3. Balance Sheet
As of December 28, 2024, Apple held $141.37 billion in cash and marketable securities against $96.80 billion of debt, resulting in a net cash position of $44.57 billion. Total assets stood at $344.09 billion, total liabilities at $277.33 billion, and shareholders’ equity at $66.76 billion. The debt-to-equity ratio of 1.45 and current ratio of 0.92 reflect manageable leverage and ample liquidity.
Analysis: Apple’s balance sheet remains among the strongest in the technology sector, providing flexibility to weather economic downturns and pursue strategic opportunities.
4. Valuation
At a closing price of $221.53 on March 26, 2025, Apple’s market capitalization was $3.33 trillion. The trailing price-to-earnings ratio is 35.28, with a forward P/E of 29.44. The PEG ratio of 2.76 and price-to-free-cash-flow ratio of 33.85 exceed five‑year averages, reflecting premium valuation tied to durable competitive advantages and recurring revenue growth.
Analysis: High valuation multiples imply limited margin for execution missteps but underscore investor confidence in Apple’s long-term growth trajectory.
5. Market Performance
Over the past 52 weeks, Apple’s share price appreciated 29.66%, trading between $164.08 and $260.10. A five‑year beta of 1.18 indicates slightly higher volatility than the broader market. Average daily trading volume over 20 days was 53.5 million shares.
Analysis: Stock outperformance reflects resilient demand for Apple’s products and services amid broader market volatility.
6. Financial Health & Risks
Apple’s liquidity profile is strong, though the current ratio below 1 is offset by a substantial cash balance. Key risks include product concentration (iPhone accounts for nearly half of revenue), supply‑chain disruptions from geopolitical tensions, and heightened regulatory scrutiny of App Store practices. Macro weakness could dampen consumer spending on premium devices, while competition from Google, Samsung, and Amazon intensifies in both hardware and services.
7. Conclusion
Pros: Integrated ecosystem driving recurring revenue; industry-leading margins and free cash flow; substantial shareholder returns (3.10% yield combining dividends and buybacks).
Cons: Elevated valuation multiples with limited downside cushion; slowing revenue growth; concentration risk in core hardware; regulatory and supply-chain uncertainties.
Key Catalysts: Continued growth in services ARPU, AI-driven product enhancements, expanded enterprise adoption of Apple Silicon.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investors should conduct independent research or consult a financial advisor before making investment decisions.
American Express Company (AXP) Stock Analysis
American Express Company (NYSE: AXP)
Analysis as of March 27, 2025
1. Company Overview
American Express (AmEx) is a global financial services firm specializing in charge and credit card products, merchant acquiring, and travel-related services. Established in 1850, AmEx differentiates itself through a premium customer base, a closed-loop network, and strong brand recognition. Its business model focuses on high-income consumers and small-to-medium enterprises, offering rewards-rich products, concierge services, and a suite of payment and expense management solutions.
Key Business Segments
·      Consumer Services: The largest revenue driver, comprising personal charge and credit cards. High spend per cardmember and elevated fees underpin robust revenue growth.
·      Merchant Services: Enables merchants to accept AmEx payments globally. High merchant discount rates deliver superior yields compared to competitors.
·      Travel & Other Services: Includes travel booking, insurance, and expense management solutions, contributing to revenue diversification.
2. Financial Performance
Revenue & Growth
Over the trailing twelve months ending December 31, 2024, AmEx generated $60.76 billion in revenue, marking a 9.3% year‑over‑year increase. Net interest income rose 18.3% to $15.54 billion, driven by higher average loan balances and rising interest rates. Non‑interest revenue (commissions, fees, and other) increased 7% to $50.41 billion.
Analysis: Continued growth reflects strong consumer spending, expanding merchant acceptance, and strategic pricing of credit products.
Profitability
Net income to common shareholders reached $9.995 billion, up 21.0% year‑over‑year, translating to diluted EPS of $14.01 (25.0% growth). AmEx maintained a profit margin of 16.45% and operating margin of 20.30%, demonstrating efficient cost control amid revenue expansion.
Analysis: Profitability benefits from high-margin fee income, disciplined expense management, and effective credit loss provisioning.
Cash Flow
Operating cash flow declined 24.3% to $14.05 billion due to higher funding of receivables, while free cash flow stood at $12.13 billion. Capital expenditures remained modest at $1.92 billion. AmEx returned $8.02 billion to shareholders through dividends and share repurchases in 2024.
Analysis: Strong free cash flow supports a 1.19% dividend yield and a buyback yield of 3.13%, delivering total shareholder yield of 4.31%.
3. Balance Sheet & Capital Position
As of December 31, 2024, AmEx held $40.21 billion in cash and equivalents against $55.48 billion of debt, resulting in net debt of $14.37 billion. Total assets reached $271.46 billion, with deposits of $139.41 billion funding its loan portfolio of $143.03 billion. The current ratio of 1.35 and debt-to-equity ratio of 1.83 indicate solid liquidity and manageable leverage.
Analysis: A robust deposit franchise and capital levels support loan growth while maintaining regulatory compliance and liquidity buffers.
4. Valuation
At a closing price of $279.28 on March 26, 2025, AmEx’s market capitalization stood at $193.51 billion. The stock trades at a trailing P/E of 19.70 and a forward P/E of 17.97, below five‑year averages, suggesting attractive valuation given industry-leading returns (ROE of 34.7%) and durable competitive moats.
Analysis: A P/FCF of 15.95 and PEG of 1.19 reflect a balanced growth-to-value proposition amid rising interest rates.
5. Market Performance
Over the past 52 weeks, AmEx shares gained 22.11%, trading in a range of $214.51 to $326.27. With a five‑year beta of 1.21, the stock exhibits moderate volatility compared to the market. Average daily trading volume stands at 3.48 million shares.
Analysis: Outperformance aligns with strong earnings momentum and investor appetite for high-quality financial stocks.
6. Financial Health & Risks
Credit Risk: Provision for loan losses increased to $5.19 billion, reflecting conservative coverage amid economic uncertainty. Asset quality metrics remain healthy, with nonperforming loans below peer averages.
Regulatory Risk: Heightened scrutiny on interchange fees and consumer lending practices could pressure revenue.
Macro Sensitivity: Performance tied to consumer spending patterns and interest rate environment; economic downturn could raise credit losses and reduce transaction volumes.
Competition: Rivalry from Visa, Mastercard, and fintech disruptors challenges market share and pricing power.
7. Conclusion
Pros:
·      Premium brand and loyal customer base driving high spend per user
·      Strong profitability with ROE >30% and consistent margin expansion
·      Robust free cash flow enabling shareholder returns and balance sheet flexibility
Cons:
·      Rising credit provisions in potential economic slowdown
·      Regulatory pressures on fee structures
·      Elevated valuation relative to slower-growth financial peers
Key Catalysts: Continued rebound in consumer spending, favorable net interest margin expansion, product innovations in digital payments and lending.
Disclaimer: This analysis is informational only and does not constitute investment advice. Investors should conduct their own due diligence or consult a financial advisor before making investment decisions.
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