63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Warren Buffett’s portfolio - how is it changing and why you should care

Introducing you to W. Buffet is probably not necessary, as everyone knows this notorious investor. But the exact composition of his Berkshire Hathaway investment company's portfolio is not as well known. That’s why we have decided to take take a look at the biggest positions in the famous "Oracle of Omaha's" portfolio and write down something about them and who knows, maybe we will get inspired by his investment strategy in the process. So what sector is Warren Buffett currently betting on and does he foresee the coming crisis? We bring you the biggest positions as well as the changes Warren Buffett's portfolio will undergo in 2022.

TOP 3 - when diversification is overestimated

Apple - USD 147 billion


The fact that Warren Buffett is not a big proponent of diversification is evidenced by the size of his position in Apple.It makes up nearly 42% of his portfolio - so any significant volatility in Apple stock moves the entire Berkshire Hathaway portfolio significantly. The size of the holding is currently 5.6%, making Berkshire Hathaway the third largest institutional investor in Apple. Why does Apple have a permanent spot in Warren Buffett's portfolio? Just three words here - growth, dividends and buybacks. Apple has steadily become America's largest company and its profits are growing massively. It can afford to pay out over $10 billion in dividends to investors every year. Apple is also certainly not skimping on share buybacks, with over USD 500 billion worth of shares bought back since 2013. That's music to any investor's ears, and Berkshire Hathaway's stake is more likely to increase than the other way around.

Apple graf mt4 purple trading
Chart 1: Apple shares on the MT4 platform on the W1 timeframe along with the 50 and 100 day moving averages
 

Bank of America - USD 35 billion


There is a giant leap between the two largest positions in the portfolio, with the second Bank of America representing less than 10% of Berkshire Hathaway's portfolio. Warren Buffett first invested in one of America's largest banks in 2011. Like Apple, Bank of America is quite generous to its investors through dividend payments. The “Oracle of Omaha” also holds a significant position in U.S. Bancorp. After technology, finance is the second favourite sector of this legendary investor. Both banks are benefiting greatly from the development of digitalization in finance and also from rising interest rates in the U.S.

Bank of America graf purple trading mt4
Chart 2: Bank of America shares on MT4 on the W1 timeframe along with the 50 and 100 day moving averages

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Coca-Cola Company - USD 26 billion


If you've seen at least one documentary about Warren Buffett, you've probably seen that he can't get enough of Coca Cola and McDonald. This brings us to another prominent position in Berkshire Hathaway's portfolio. In fact, Coca-Cola Company shares represent approximately 7.3% of the portfolio and it is also the oldest of the current investments. In fact, Warren Buffett began investing in Coca-Cola stock as early as 1988. But it's certainly not just the popularity of the famous brown beverage that's responsible for this; the Coca-Cola Company is one of the strongest brands in the world and one of the most stable dividend payers - and that's what Warren Buffett loves most of all.

Coca cola graf mt4 purple trading
Chart 3: Shares of Coca-Cola Company on the MT4 platform on the W1 timeframe along with the 50 and 100 day moving averages


Which sector is Warren Buffett currently betting on?

In recent years, Warren Buffett's investments have primarily focused on one sector - energy. In recent months, his most significant investment was the purchase of a stake in Occidental Petroleum. Buffett began buying its stock back in 2019, when the company was seeking funds to acquire Anadarko Petroleum. However, the volume of purchases has taken a steep upward turn, particularly in 2022, pushing Berkshire Hathaway's stake in Occidental Petroleum past 20% in recent days. According to some opinions, Warren Buffett could try to control Occidental Petroleum completely and buy all the shares. This company is definitely worth watching.
 
However, Occidental Petroleum is not the only energy company in Berkshire Hathaway's portfolio. Towards the end of 2020, Warren Buffett invested in another company from the energy sector - Chevron Corporation. He has a stake of just over 8% in the company, which, thanks to skyrocketing stock prices of energy companies, amounted to over $25 billion. Some of the other companies that Warren Buffett has added to his portfolio in 2022 are HP, Paramount Global, Citigroup, Activision Blizzard, Formula One Group and General Motors.

Chevron graf mt4 purple trading
Chart 4: Shares of Chevron Corp in the MT4 platform on the W1 timeframe along with the 50 and 100 day moving averages


Why follow the "Oracle of Omaha"?

Watching Warren Buffett's portfolio is definitely worthwhile for investors and speculators. His Berkshire Hathaway is one of the biggest players in the stock markets and the announcement of any acquisition can cause high volatility. But if you don't have time to follow the latest moves in Warren Buffett's portfolio, don't worry, his Berkshire Hathaway is itself listed on the New York Stock Exchange under the ticker BRK-B. Moreover, since the beginning of the year, the company has done relatively well, with its shares down just under 3%, while the S&P 500 index has corrected by more than 13%. Moreover, despite his advanced age, Warren Buffett is still one of the most important figures in capitalism, and every statement he makes carries a lot of weight.


Does Warren Buffett foresee the coming crisis?


Last week, Berkshire Hathaway announced its financial results and it seems that its loss due to the fall of global stock markets reached USD 44 billion during the second quarter. Moreover, there is another issue on the horizon that could make Warren Buffet lose a few hairs. A possible economic recession could significantly affect the number of zeros in his account. His company's actions during the second quarter seemed to confirm that Warren Buffett himself expects a recession to be imminent. In fact, the company significantly reduced the amount of money invested compared to the first quarter and repurchased its own shares. So it is possible that the famous investor is preparing his "ammunition" for discount purchases. 

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Your capital is at risk.
63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.