The year 2023 hasn’t been as rude as 2022 probably was, as US equities made a strong comeback and propelled Buffett’s portfolio. The tech-heavy Nasdaq Composite index has gained a whopping 33% on a year-to-date basis.
While a majority of Buffett’s investments have been in equities, for his firm Berkshire Hathaway, cash always remains the ‘King’.
In his annual letter to stakeholders earlier this year, Buffett said that Berkshire will always hold a boatload of cash and US Treasury bills while avoiding such investment decisions that could result in any uncomfortable cash levels at inconvenient times.
Investment Mantras
Popularly called ‘The Oracle of Omaha’ for his impressive investing prowess, Buffett believes in acquiring stocks of companies that are trading at a discount to their intrinsic value.
“The best time to invest in the market is when other investors are very fearful,” he says.
Giving precedence to quality over price is another key investment strategy followed by Buffett and his firm.According to him, it is better to buy a good company at a fair price, rather than a fair company at an attractive price.
Think big and think long-term is Buffett’s rule of investment. He is a strong believer that good businesses earn higher returns and increase in value over time, which is why buying and holding stocks for a longer period of time is critical for better returns.
Long-term investment needs patience and Buffett says it’s the only way to make great money in the market.
The world is full of foolish gamblers, and they will not do as well as the patient investor, the billionaire believes.
Buffett’s Top Investments
The top 10 holdings of Buffett in terms of the number of shares include names like Bank of America Corp, Apple, Coca-Cola, Kraft-Heinz, Occidental Petroleum, American Express, Chevron Corp, HP, NU Holdings, and Paramount Global.
The “Apple” of his eyes is among the stocks to have given the best returns in 2023, as the iPhone maker has rallied a whopping 42%. With a nearly 6% stake in Apple Inc, the value of Buffett’s holding is a staggering $178 billion, and constitutes 51% of the total portfolio.
NU Holdings is another stock that has given a stellar 71% return so far in 2023.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
