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.

Apple, Inc. (AAPL) Stock Analysis

Apple Inc. (NASDAQ: AAPL)
Analysis as of February 24, 2025

 

1.  Company Overview
Apple Inc. is a global consumer electronics and software company best known for its flagship products and services such as the iPhone, iPad, Mac, Apple Watch, and Apple TV, alongside a rapidly growing suite of subscription services (Apple Music, Apple TV+, iCloud, etc.). The company’s ecosystem is built on a seamless integration of hardware, software, and services, fostering strong brand loyalty and high customer retention.

Key Business Segments

  • iPhone & Hardware:
    Core revenue drivers include the iPhone, Mac, iPad, Apple Watch, and AirPods.
  • Services:
    A diverse portfolio of digital services (App Store, Apple Music, Apple TV+, Apple Pay, etc.) that continues to expand as a significant revenue stream.
  • Wearables, Home & Accessories:
    Apple Watch, AirPods, and smart home devices contribute to a robust accessories ecosystem.

2.  Financial Performance

a. Revenue and Growth

  • TTM Revenue (as of Dec 28, 2024): $395.76 Billion
  • YoY Revenue Growth (TTM): ~2.61%

Analysis:
After years of robust expansion, Apple’s revenue growth has moderated slightly. Nonetheless, the company continues to benefit from steady demand for its flagship products and increasing traction in its services segment.

b. Profitability

  • Net Income (TTM): $96.15 Billion
  • EPS (TTM): $6.28
  • Profit Margin (TTM): ~24.30%
  • Return on Equity (TTM): ~136.52%
  • Return on Assets (TTM): ~22.52%

Analysis:
Apple maintains strong profitability due to premium pricing, a loyal customer base, and significant economies of scale. The exceptionally high ROE reflects the company’s share repurchase programs and effective capital allocation strategies.

c. Margins

  • Gross Margin (TTM): ~46.52%
  • Operating Margin (TTM): ~31.76%
  • EBITDA Margin (TTM): ~34.71%

Analysis:
Healthy margins stem from Apple’s integrated hardware-software ecosystem and its ability to command premium prices. As services become a larger portion of revenue, overall margins have remained elevated.

d. Cash Flow

  • Operating Cash Flow (TTM): $108.29 Billion
  • Capital Expenditures (TTM): ~$10.00 Billion
  • Free Cash Flow (TTM): $98.30 Billion
  • FCF Margin (TTM): ~24.84%

Analysis:
Substantial free cash flow allows Apple to invest heavily in R&D, supply chain efficiencies, and strategic acquisitions, while also returning capital to shareholders via buybacks and dividends. This underscores the stability of its cash-generative business model.

3.  Balance Sheet

  • Total Assets: $344.09 Billion
  • Total Liabilities: $277.33 Billion
  • Shareholders’ Equity: $66.76 Billion
  • Total Debt: $96.80 Billion
  • Cash & Marketable Securities: $141.37 Billion
  • Net Cash (Debt): $44.57 Billion
  • Debt/Equity: 1.45
  • Current Ratio: 0.92

Analysis:
Apple’s balance sheet remains robust, though it carries more debt than in previous years. The company’s large cash reserves still outweigh total debt, maintaining a solid net cash position and ample financial flexibility.

4.  Valuation

  • Current Stock Price (as of Feb 24, 2025): $245.55
  • Market Capitalization: $3.72 Trillion
  • PE Ratio (TTM): 38.99
  • Forward PE: 32.47
  • P/FCF (TTM): 37.53
  • PEG Ratio: 3.42

Analysis:
Apple’s valuation multiples remain elevated, reflecting market confidence in its steady growth, strong brand, and recurring services revenue. Despite a higher PE relative to historical averages, investors appear willing to pay a premium for Apple’s resilience and ecosystem advantages.

5.  Market Performance

  • 52-Week Range: $164.08 – $260.10
  • 52-Week Price Change: +35.98%
  • Beta: 1.20

Analysis:
Apple’s share price has significantly outperformed broader indices over the past year, partly driven by strong consumer demand and expansion of high-margin services. A beta of 1.20 suggests somewhat higher volatility relative to the broader market.

6.  Financial Health and Risks

a. Liquidity & Leverage

  • Current Ratio: 0.92 indicates near-term liabilities exceed near-term assets, though Apple’s massive cash position partially mitigates this risk.
  • Debt/Equity: 1.45, signifying increased leverage but still manageable given robust cash flows.

b. Profitability & Cash Flow

  • High Margins: Reflects Apple’s premium brand positioning and services growth.
  • Strong Cash Flow: Facilitates product innovation, capital returns (buybacks, dividends), and potential M&A.

c. Operational & Market Risks

  • Product Concentration: iPhone revenue remains a large portion of overall sales, potentially creating vulnerability if smartphone demand weakens.
  • Supply Chain Disruptions: Geopolitical tensions and global component shortages can impact production and product availability.

d. Regulatory & External Risks

  • Regulatory Scrutiny: Issues around app store policies, antitrust, and data privacy could affect revenue streams or operational structure.
  • Macro Environment: Economic downturns can slow consumer spending on premium devices.

7.  Conclusion

Pros

  • Powerful Ecosystem: Seamless integration of hardware, software, and services fosters customer loyalty.
  • High Margins & Cash Flow: Strong profitability and free cash flow enable ongoing innovation and shareholder returns.
  • Brand Equity: Apple’s brand remains one of the most valuable worldwide, supporting premium pricing and repeat purchases.

Cons

  • High Valuation: Elevated PE and PEG ratios suggest less margin for error in execution.
  • Product Dependence: iPhone sales still dominate revenue, posing concentration risks.
  • Regulatory & Geopolitical Pressures: Ongoing scrutiny could lead to changes in app store commissions or supply chain realignments.

Disclaimer
This analysis is for informational purposes only and does not constitute investment advice or a recommendation. Investing involves risks, including possible loss of principal. Past performance is not a guarantee of future results. Investors should conduct their own research or consult a financial professional before making any investment decisions.

Who is Warren Buffett ?

1930:

Warren Buffett was born in Omaha, Nebraska.

1942:

Buffett buys his first stock, Cities Service Preferred, at age 11.

1951:

Buffett graduates from Woodrow Wilson High School in Omaha.

1952:

Buffett enrolls at the University of Pennsylvania, where he studies economics and finance.

1954:

Buffett transfers to Columbia University, where he studies under Benjamin Graham, the father of value investing.

1956:

Buffett graduates from Columbia University and takes a job as a securities analyst at Graham-Newman Corp.

1957:

Buffett marries Susan Thompson.

1962:

Buffett leaves Graham-Newman Corp. to start his own investment partnership, Buffett Partnership, Ltd.

1965:

Buffett buys a controlling interest in Berkshire Hathaway, a textile company.

1967:

Buffett begins to transition Berkshire Hathaway from a textile company to an investment company.

1970:

Buffett Partnership, Ltd. is liquidated.

1972:

Buffett becomes the chairman and CEO of Berkshire Hathaway.

1973:

Berkshire Hathaway’s stock price falls by 50% during the stock market crash.

1980:

Berkshire Hathaway’s stock price begins to recover.

1985:

Buffett buys See’s Candies.

1987:

Berkshire Hathaway survives the Black Monday stock market crash relatively unscathed.

1990:

Buffett buys Geico.

1996:

Buffett buys American Express.

1999:

Buffett is named “Investor of the Century” by Time magazine.

2006:

Buffett buys The Buffalo News.

2008:

Buffett survives the financial crisis.

2011:

Buffett donates $31 billion to the Bill & Melinda Gates Foundation.

2012:

Buffett is awarded the Presidential Medal of Freedom.

2019:

Buffett becomes the third-wealthiest person in the world.

2020:

Buffett’s net worth falls by $24 billion during the COVID-19 pandemic.

2021:

Buffett’s net worth recovers and he becomes the fourth-wealthiest person in the world.

2022:

Buffett turns 92 years old.

Interesting Facts:

Buffett bought his first stock when he was just 11 years old.

He is known as the “Oracle of Omaha.”

Buffett is widely considered one of the greatest investors of all time.

He is also a noted philanthropist, having pledged to give away 99% of his wealth to charitable causes.

He is also a fan of playing bridge, and has been known to play the game for hours on end.

Buffett is a longtime friend of Microsoft co-founder Bill Gates, and the two have worked together on several philanthropic initiatives.

 

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