Every Warren Buffett Stock Ranked: The Berkshire Hathaway Portfolio
The Berkshire Hathaway (BRK.B) portfolio, most of which was selected by Chairman and CEO Warren Buffett, brings to mind ubiquitous blue-chip stocks such as American Express (AXP), Coca-Cola (KO) and, more recently, Apple (AAPL).
But a deep dive into Berkshire Hathaway's equity holdings reveals a more complicated picture.
Berkshire Hathaway held positions in 48 separate stocks as of Sept. 30, according to the most recent regulatory filing (Nov. 14) with the Securities and Exchange Commission - up from 47 during the second quarter of this year. But the portfolio of "Buffett stocks" isn't as diversified as the number might suggest. In some cases, BRK.B holds more than one share class in the same company. Also, some holdings are immaterial leftovers from earlier bets that the Oracle of Omaha has mostly exited, just not completely.
In fact, Berkshire Hathaway's equity portfolio is actually pretty concentrated. The top six holdings account for almost 70% of the portfolio's total value. The top 10 positions comprise a little more than 80%. Banks and airlines, to cite a couple of industries, carry quite a load in this portfolio. Then there's the fact that several Buffett stocks were picked by portfolio managers Todd Combs and Ted Weschler.
Here, we examine each and every holding to give investors a better understanding of the entire Berkshire Hathaway portfolio.
United Parcel Service
Shares held: 59,400
Holding value: $7,117,000
Percent of portfolio: 0.003%
United Parcel Service (UPS, $124.08) might be the world's biggest package delivery company, but it's the least material stock in Berkshire Hathaway's portfolio. With fewer than 60,000 shares, this is the most meager of Buffett stocks - a rump position, leftovers, an odd lot.
Buffett made the plunge into UPS during the first quarter of 2006, when he picked up 1.43 million shares worth about $113.5 million. That comes to an average price per share of $79.38.
But UPS never grew to be a major part of Berkshire's portfolio, and Buffett has pared the position over the years to where it wouldn't be a surprise if he exited the stake at any time. (Berkshire quietly dropped another small holding - telecom giant Verizon (VZ) - in the first quarter of 2019 when he dumped his last 928 shares.)
Buffett occasionally can be fairly chatty about some of his more notable stock picks, but he typically doesn't comment on BRK.B's buys and sells. There's no mention of United Parcel Service in CNBC's indispensable Warren Buffett archive. But one clue as to why UPS never became a bigger part of Berkshire Hathaway's holdings might be the fact that since March 31, 2006, it has delivered a total return of 131%. But Standard & Poor's 500-stock index generated a total return of 214% in that same time frame.
Translation: UPS has been a bust for BRK.B.
Mondelez
Shares held: 578,000
Holding value: $31,975,000
Percent of portfolio: 0.01%
Berkshire Hathaway's Mondelez (MDLZ, $52.90) holding stems from Buffett's 2007 investment in what was then known as Kraft Foods. The packaged food company changed its name to Mondelez in 2012 after spinning off its North American grocery business, which was called Kraft Foods Group and traded under the ticker KRFT. Kraft Foods Group them merged with H.J. Heinz, in a 2015 deal backed by Buffett, to form Kraft Heinz (KHC).
As we'll see shortly, Berkshire Hathaway maintains a significant stake in KHC. Mondelez, not so much.
Buffett has never seemed all that enamored with Mondelez, whose brands include Oreo cookies and Triscuit crackers, shooting down speculation in 2017 that Kraft Heinz would buy the global snacks giant. MDLZ's underperformance vs. the S&P 500 since the spinoff probably hasn't improved Buffett's stance on the company, either.
Berkshire Hathaway isn't even among Mondelez's top 100 shareholders, at just 0.04% of MDLZ shares outstanding, according to data from S&P Global Market Intelligence. And Mondelez accounts for just one one-hundredth of a percent of the total value of Berkshire Hathaway's equity portfolio.
Nothing to see here, folks.
Procter & Gamble
Shares held: 315,400
Holding value: $39,229,000
Percent of portfolio: 0.02%
Procter & Gamble (PG, $120.50), the consumer products giant and component of the Dow Jones Industrial Average, is another blue-chip stock that has fallen by the wayside as a Berkshire Hathaway investment.
Buffett came to own P&G - maker of Tide detergent, Crest toothpaste and Pampers diapers - via the holding company's 2005 acquisition of razor-maker Gillette. At the time, Buffett, a major Gillette shareholder, called the tie-up a "dream deal." Procter & Gamble became one of BRK.B's biggest equity positions.
That dream didn't last very long. The Great Recession eroded the pricing power of old-line consumer staples companies such as P&G. The company embarked on a plan to shed 100 underperforming brands. The Duracell battery business happened to be on the list, and Berkshire bought it
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