- Warren Buffett, the leader of Berkshire Hathaway, is a long-time value investor who looks to invest in companies that are undervalued by the market.
- This year, however, Berkshire’s used some of its record $128 billion cash pile to expand equity holdings instead of buy companies.
- That’s because “prices are sky-high for businesses possessing decent long-term prospects,” Buffett wrote in his 2018 annual shareholder letter. It’s made it difficult for Buffett to finalize any acquisitions.
- Here are his top 13 stock holdings according to SEC filings.
- Read more on Business Insider.
Warren Buffett, the billionaire mogul who leads Berkshire Hathaway, has been a longtime champion of value investing, which involves buying stocks or companies that are trading for less than they might be worth.
In his 2018 letter to shareholders, he wrote that he picks investments by “calculating whether a portion of an attractive business is worth more than its market price.”
But while making major acquisitions has been a focus of Berkshire Hathaway in the past, Buffett wrote that in 2019 Berkshire Hathaway would likely expand its holdings of marketable equities – which currently equal roughly $234 billion.
Buffett has a lot of resources to put into the stock market. At the end of the third quarter, the company’s earnings report showed that its cash holdings had grown to a record $128 billion, even as it repurchased $700 million of its own stock. The cash pile has grown because Buffett hasn’t bought a company since 2016.
"Prices are sky-high for businesses possessing decent long-term prospects," he wrote. "We continue, nevertheless, to hope for an elephant-sized acquisition."
But even less-than-elephant-sized acquisitions have stumped Buffett as of late. He recently lost out on a bid for Tech Data because he refuses to participate in bidding wars. Buffett bid $5 billion for Tech Data but wouldn't raise his price after Apollo Management offered the company $5.14 billion.
While buying stocks as opposed to companies may present a "disappointing reality" for Buffett, his stock holdings give investors a window into what companies he sees as attractive.
Here are the top 13 holdings of Berkshire Hathaway as of third quarter-end, according to Securities and Exchange Commission filings, ranked by the total value of each investment.
13. Southwest Airlines
Ticker: LUV
Berkshire holdings: 53,649,213 shares
Value: $3 billion
Source: SEC filings
10. Delta Air Lines
Ticker: DAL
Berkshire holdings: 70,910,456 shares
Value: $4 billion
Source: SEC filings
11. Goldman Sachs
Ticker: GS
Berkshire holdings: 18,353,635 shares
Value: $4 billion
Source: SEC filings
12. Bank of New York Mellon
Ticker: BK
Berkshire holdings: 80,937,250 shares
Value: $4 billion
Source: SEC filings
9. Moody's Corporation
Ticker: MCO
Berkshire holdings: 24,669,778 shares
Value: $6 billion
Source: SEC filings
8. US Bancorp
Ticker: USB
Berkshire holdings: 132,459,618 shares
Value: $8 billion
Source: SEC filings
7. JPMorgan Chase & Co
Ticker: JPM
Berkshire holdings: 59,514,932 shares
Value: $8 billion
Source: SEC filings
6. Kraft Heinz Co
Ticker: KHC
Berkshire holdings: 325,634,818 shares
Value: $10 billion
Source: SEC filings
5. American Express Company
Ticker: AXP
Berkshire holdings: 151,610,700 shares
Value: $18 billion
Source: SEC filings
4. Wells Fargo & Co
Ticker: WFC
Berkshire holdings: 378,369,018 shares
Value: $20 billion
Source: SEC filings
3. Coca-Cola Co
Ticker: KO
Berkshire holdings: 400,000,000 shares
Value: $22 billion
Source: SEC filings
2. Bank of America
Ticker: BAC
Berkshire holdings: 947,760,000 shares
Value: $31 billion
Source: SEC filings
1. Apple Inc.
Ticker: AAPL
Berkshire holdings: 248,838,679 shares
Value: $65 billion
Source: SEC filings