Warren Buffett’s Berkshire Hathaway made some notable changes to its portfolio in the third quarter of 2024. The company slashed its massive stake in Apple by 25%, bringing its holdings down to 300 million shares. Berkshire Hathaway also sold a portion of its shares in Bank of America.
These moves show Buffett’s active management style and willingness to adjust his portfolio based on market conditions. Buffett’s investment strategy has long been a subject of interest for investors who want to copy his success. He is known for his value investing principles and has historically chosen companies with strong fundamentals and long-term growth potential.
The reduction in Apple holdings suggests a need to re-evaluate positions even in companies that have been historically strong performers. Buffett’s portfolio adjustments in late 2024 highlight his proactive investment strategy and continuous evaluation of market conditions. Despite some trades in the past year, three stocks in Berkshire Hathaway’s portfolio remain untouched as Buffett expressed no intention of selling them.
These stocks account for about 28.4% of Berkshire’s $303 billion portfolio. American Express is one of these stocks, with Berkshire holding a 21.5% stake.
Buffett’s active portfolio adjustments
The company operates its own payment network, allowing it to control more of the transaction economics and generate substantial discount revenue from swipe fees. In 2024, American Express reported $35.2 billion in discount revenue. Coca-Cola is another stock Buffett admires, known for its strong brand, ability to raise prices, and operational scale.
The company managed to increase prices by 10% year over year in the last quarter amidst inflation. Coca-Cola has also raised its dividend for 62 consecutive years. Occidental Petroleum is a relatively new addition to Berkshire’s portfolio.
Buffett made a significant investment with a $10 billion purchase of preferred shares in 2019. Berkshire now owns 28.2% of the common stock. Despite the volatility in oil prices, Buffett sees long-term value in the company.
Warren Buffett’s investment strategy emphasizes holding reliable and well-managed companies long-term. American Express, Coca-Cola, and Occidental Petroleum’s sustained presence in Berkshire Hathaway’s portfolio underlines their strategic importance and potential for generating steady returns. Investors looking for stable investments may find these stocks worth considering.
