2 Warren Buffett Stocks in an Uptrend With More Room for Gains
2024.09.02 05:22
Warren Buffett has recently made notable shifts in his portfolio.
The latest data shows that Buffett reduced his stake in Apple (NASDAQ:) by nearly half and exited Chevron (NYSE:), reallocating capital to stocks like Occidental Petroleum (NYSE:).
Now, over 90% of his portfolio is concentrated in just eleven stocks.
Despite selling off a significant portion of Apple and Bank of America (NYSE:), Buffett chose not to part with American Express (NYSE:), which remains a crucial part of his holdings.
Here’s a closer look at the major holdings in Buffett’s portfolio:
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Apple: Despite a reduced position, Apple remains Buffett’s largest holding, constituting 30% of his portfolio. He retains 400,000 shares valued at $84.24 billion, marking the smallest percentage of Apple shares Buffett has held since 2020.
- Band of America: This stock makes up 14.7% of his portfolio.
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American Express: Now making up 12.4% of the portfolio, American Express is valued at over $39 billion. Buffett’s confidence in this stock underscores its importance to his strategy.
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Coca-Cola (NYSE:): Holding 400 million shares worth $25.46 billion, Coca-Cola accounts for just over 9% of Buffett’s portfolio.
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Chevron: Buffett’s position in Chevron is 6.6%, with a total of 118 million shares.
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Occidental Petroleum: Buffett’s investment in Occidental stands at 248 million shares, valued at $16.09 billion.
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Kraft Heinz (NASDAQ:): This stock represents 3.7% of the portfolio, valued at $10.9 billion.
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Moody’s: Buffett holds just over 3% of his portfolio in Moody’s, with 24 million shares.
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Chubb (NYSE:), Davita, and Citigroup: They account for less than 3% of the portfolio.
In the second quarter, Buffett introduced new positions, including Ulta Beauty (NASDAQ:) (690,000 shares) and Heico (NYSE:) (1 million shares).
2 Top Warren Buffett Picks to Consider
1. Bank of America
Buffett’s Berkshire Hathaway (NYSE:) has recently trimmed its stake in Bank of America, selling $981.9 million worth of shares. From August 23 to last Tuesday, Buffett offloaded approximately 24.7 million shares.
Despite this reduction, Berkshire still holds 903.8 million shares. Since its initial investment in 2011, the stock has appreciated 21% this year., representing an uptrend.
It will pay a $0.26 dividend on September 27, with a record of increasing dividends for ten consecutive years and maintaining payouts for over fifty years.
The stock’s fair value price target is $51.82, representing a 27% upside from this week’s closing price.
2. American Express
This stock now ranks as Buffett’s second-largest holding after the recent cut in Apple shares. It represents 12.4% of Berkshire’s portfolio, with a stake valued at more than $39 billion.
Over the past 52 weeks, American Express has surged 62%, with a 38.6% gain in 2024 alone. The company recently raised its quarterly dividend by 17%, bringing the annualized dividend to $2.80 per share, with a yield of 1.09%.
American Express’s strong performance is driven by its appeal to younger consumers, with Millennials and Gen Z now making up over 60% of new accounts, thanks to premium card benefits like streaming service credits and Uber (NYSE:) Eats passes.
Buffett’s recent portfolio adjustments highlight his strategic focus on select high-performing stocks, reflecting his confidence in their future growth and stability.
Market Participants Bullish as September Kicks Off
Bullish sentiment, i.e. expectations that stock prices will rise over the next six months, decreased 0.5 percentage points to 51.2% and remains above its historical average of 37.5%.
Bearish sentiment, i.e., expectations that stock prices will fall over the next six months, increased 3.3 percentage points to 27% and remains below its historical average of 31%.
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