According to Warren Buffett, “wide diversification is only required when investors do not understand what they are doing.” In other words, if you diversify too much, you might not lose much, but you won’t gain much either.
According to 68% of Buffett’s Portfolio Is in These 4 Stocks (published on May 26, 2020): Of Buffett’s more than $196 billion in portfolio worth, as of May 21, 2020, 68% of it was centralized in just four stocks.
- Apple: $79.5 billion (40%)
- Bank of America: $21.7 billion (11%)
- Coca-Cola: $18.1 billion (9.2%)
- American Express: $13.6 billion (6.9%)
Based on The Most Surprising Thing About Warren Buffett’s Investing Strategy (2019), Buffett’s portfolio was highly concentrated in three sectors, as well as five individual stocks:
Buffet’s three main sectors:
- The Financial Sector: Big banks and insurers have been mainstays in Buffett’s portfolio for decades. In the second quarter of 2019, this sector has 47.37% allocation of Bershire Hathaway.
- The Information Technology Sector: This is the second largest holding in Buffett’s portfolio. It has 24.2% of invested capital at the end of June in 2019.
- The consumer Staples: Berkshire Hathaway’s portfolio holds 15.23% of stocks in Consumer staples at the end of the second quarter in 2019.
“These three sectors comprise 86.8% of Berkshire Hathaway’s $208 billion in invested capital.”
Based on CNBC’s Bershire Hathaway Portfolico Tracker, here are the top 10 holdings in buffett’s portfolio based on the Holdings reported on May 15, 2020, and other filings:
- Davita Inc (31.3%)
- Kraft Heinz Co (26.7%)
- American Express (18.8%)
- Moody’s Corporation (13.2%)
- Verisign, Inc. (11.1%)
- Liberty Sirius XM Group Series C (15.2%)
- Liberty Sirius XM Group Series A (14.7%)
- Liberty Global PLC Class A (10.9%)
- Bank of America (10.9%)
- Liberty Global PLC Class A (10.9%)
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