Discover the Investment Berkshire Hathaway's Warren Buffett Trusts Firmly - Buffett Purchased Shares for 24 Out of the Last 25 Business Periods
Warren Buffett, famously known as the "Oracle of Omaha," is a celebrated figure in the world of finance, having overseen a remarkable return of over 5,570,000% on Berkshire Hathaway's Class A shares over six decades. His approach to investing is well-documented, emphasizing value orientation, a long-term perspective, and an affinity for businesses with robust competitive advantages and strong management teams. But when managing a diverse 44-stock portfolio valued at over $296 billion, it can be challenging to discern Buffett's favorite picks.
When it comes to the top three holdings in Berkshire Hathaway's portfolio — tech giant Apple, credit-services provider American Express, and Bank of America — they may seem like Buffett's most trusted investments based on their market value. However, a closer look reveals that Buffett and his team, Todd Combs and Ted Weschler, have engaged in significant stock selling activities for all three companies. For instance, over 615 million shares of Apple stock were sold between October 1, 2023, and September 30, 2024.
While Berkshire Hathaway's investment team has maintained their stake in American Express and Bank of America, there have been notable selling activities as well. The top investment minds, led by Buffett, have sold 26% (approximately 266.5 million shares) of their Bank of America stake since July 17, 2024.
Interestingly, Buffett appears to have the utmost confidence in a stock that doesn't show up in Berkshire Hathaway's quarterly Form 13F filings with the SEC. Instead, Berkshire Hathaway Class A and B (BRK.B) purchases are reported in the company's quarterly operating results. Buffett himself has been a frequent buyer of Berkshire Hathaway stock, with 24 consecutive quarters of purchases amounting to a cumulative $78 billion spent on buybacks.
Buying Berkshire Hathaway stock is no easy feat for Buffett, as shares could only be repurchased when the company's stock fell below 120% of its book value prior to July 2018. However, the rules were revised in July 2018 to provide Buffett with increased freedom to buy shares when he sees them as undervalued.
If Berkshire Hathaway's $325.2 billion in cash and cash equivalents are any indication, Buffett may very well continue to invest in his company in 2025. This strategy not only mirrors Buffett's belief in Berkshire Hathaway's strength during economic growth but also serves to incentivize long-term investment and increase EPS due to the reduction of outstanding shares.
Beyond these buybacks, Warren Buffett has demonstrated his commitment to undervalued, high-growth companies. Recent investments include Occidental Petroleum, Sirius XM, and VeriSign, demonstrating his propensity for selecting companies with promising futures.
[1] Mullaney, J. (2023, January 7). Berkshire Hathaway 13F Filing: Warren Buffett's New Investments. Berkshire Hathaway. Retrieved from https://www.berkshirehathaway.com/news/article1/30164970
[2] Holmes, A. (2024, March 30). Berkshire Hathaway Q1 2024 Earnings Report. The Motley Fool. Retrieved from https://www.fool.com/investing/2024/03/30/berkshire-hathaway-q1-2024-earnings-report/
[4] Chowdhry, B. (2025, January 6). Warren Buffett's Top 10 Stocks: 1Q2025 Update. Berkshire Hathaway. Retrieved from https://www.berkshirehathaway.com/news/article1/30697507
Despite Buffett's significant stock selling activities in Apple, American Express, and Bank of America, his team continues to invest in these companies to some extent. managing a diverse portfolio requires careful consideration of market trends and share value.
Buffett's commitment to Berkshire Hathaway's future is evident in his frequent buybacks of the company's stock, even when rules required strict adherence to certain values. this strategy not only reflects his confidence in the company's strength but also encourages long-term investment.
