Invest in stocks that Warren Buffett invests in

A second way to invest like Warren Buffett is to invest in stocks. The securities on the stock market are a clear path for the investor: they allow to enter directly and bet on the financial asset that interests us, without opting for other additional securities.

Stocks have another main attraction apart from being affordable: the possibility of receiving a dividend. This is a common tool used by listed companies to retain their shareholders, who receive a bonus from time to time for the shares they own in that company.

To buy shares there are different online brokers. A broker is an agent or company that executes transactions for the sale of financial instruments, including shares. An option that fits for those who want to buy individual titles of the company and not more elaborate instruments.

Of course, it is essential to choose a broker with characteristics that ensure the maximum use of the investment: costs and commissions, security (better regulated and recognized by financial authorities, such as the CNMV), minimum amount that they ask to invest… You can consult the best brokers to expand information and see which one suits you.

To replicate Buffett, the most logical thing is to buy shares of the companies in which he has a greater participation. These are: Apple, Bank of America, American Express, Coca Cola and Kraft Heinz. And we can be even more direct by buying shares of Berkshire Hathaway, Buffett’s holding company. The company is listed on the Nasdaq index.

Where is Warren Buffett investing?

We have just discussed his latest moves, but where does the businessman put his money? Where is Warren Buffett investing in 2022? Unlike the most prominent billionaires on the Forbes list, Buffett has not strictly built his fortune from founding a company. He has built an empire from investment.

The accounts of his Berkshire Hathaway holding company indicate that he has about 75% of his assets concentrated in five companies: Apple, Bank of America, American Express, Coca Cola and Kraft Heinz.

Warren Buffett Stock

Approximately 66% of the value of the assets of Berkshire, Buffett’s investment vehicle, was concentrated in four listed companies at the end of the first quarter of 2021, according to data from the Securities and Exchange Commission (SEC): Apple (159,000 million dollars ), Bank of America ($42.6 billion), American Express ($28.4 billion), and Chevron ($25.9 billion).

Approximately 66% of the aggregate fair value was concentrated in four companies (American Express Company – $28.4 billion; Apple Inc. – $159.1 billion; Bank of America Corporation – $42.6 billion and Chevron Corporation – $25.9 billion).

What have been Buffett’s latest investments?

Buffett’s moves continue to surprise investors and almost always hit the right key. To celebrate the birthday, the businessman, through Berkshire, increased his positions in some technology and financial firms (he thinks that with the rise in interest rates of the central banks they will benefit in the medium term), according to the data presented to the SEC (the American stock exchange regulator).

Berkshire’s exposure to technology and around 50% of its portfolio. The boost comes above all from Apple: its fund has bought a new stake in the second quarter of 2022. Its investment in the apple firm – it bought titles for the first time in 2016 – has skyrocketed and is now its largest participation with a difference: more than 150,000 million dollars (5.6% of the shares of the apple firm).

Among finance companies, the Oracle of Omaha has tripled investment in Ally Financial, auto and home finance. In addition, it has increased its stake in Occidental Petroleum by 16% (it now controls 20% of the oil company’s shareholders). It has also increased its participation in another oil company with a lot of weight in its investment portfolio (Chevron), as well as in Amazon, Activision Bizzard (a video game firm pending purchase by Microsoft) and Paramount Global (media and entertainment).

We recently talked about Warren Buffett’s first moves in 2022 with Francisco Lodeiro, director of Academia de Inversion, host of the Value Investing FM podcast and a great follower of the Oracle of Omaha.

And from taking positions to undoing them. Buffett divested from listed companies that were once great bets for the businessman: the automobile group General Motors, US Bancorp (banking) and Kroger (supermarket company). And, already at the end of its operations, it has sold its entire position in the North American telecommunications giant Verizon.

Last year (2021) he divested holdings in pharmaceutical companies. He reduced his position in AbbVie and Bristol Myers Squibb by 20%, and in his best known of those, Merck, by 68%. Despite having been interested in owning a basket of pharmaceutical stocks for decades, he hinted in May 2021 that he did not fully understand them and was uncomfortable holding them.

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