Warren Buffett touts U.S. stock holdings, Japan investments
Payne Capital Management President Ryan Payne analyzes Apple’s revenue growth on ‘Varney & Co.’
Warren Buffett’s highly anticipated Berkshire Hathaway annual letter to shareholders, released Saturday, praised his core U.S. holdings as well as his penchant for Japan.
U.S. Core Holdings
“We own a small percentage of a dozen or so very large and highly profitable businesses with household names such as Apple, American Express, Coca-Cola and Moody’s,” he wrote.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 245.55 | -0.28 | -0.11% |
| AXP | AMERICAN EXPRESS CO. | 295.40 | -8.46 | -2.78% |
| KO | THE COCA-COLA CO. | 71.39 | +1.33 | +1.90% |
| MCO | MOODY’S CORP. | 500.28 | -11.34 | -2.22% |
“Many of these companies earn very high returns on the net tangible equity required for their operations. At year end, our partial-ownership holdings were valued at $272 billion.”
He also hinted at buying these stocks when others are selling.
“Understandably, really outstanding businesses are very seldom offered in their entirety, but small fractions of these gems can be purchased Monday through Friday on Wall Street and, very occasionally, they sell at bargain prices,” he noted.
WARREN BUFFETT’S ANNUAL BERKSHIRE HATHAWAY LETTER: READ HERE
Warren Buffett, chief executive officer of Berkshire Hathaway, drinks a Cherry Coca-Cola as he tours the exhibition floor prior to the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S., on Saturday, May 1, 2010. Buffett, the Wall Street crit
Japan Focus
As for Japan, Berkshire increased its exposure to companies belonging to the world’s fourth-largest economy.
“A small but important exception to our U.S.-based focus is our growing investment in Japan. It’s been almost six years since Berkshire began purchasing shares in five Japanese companies that very successfully operate in a manner somewhat similar to Berkshire itself. The five are (alphabetically) ITOCHU, Marubeni, Mitsubishi, Mitsui and Sumitomo. Each of these large enterprises, in turn, owns interests in a vast array of businesses, many based in Japan but others that operate throughout the world” he detailed.
Japanese national flag fluter at the Bank of Japan headquarters in Tokyo on December 19, 2023. The Bank of Japan on December 19 maintained its long-standing, ultra-loose monetary policy and offered no guidance on its plans in the new year, sending th
New Stock Purchase
Prior to his annual letter, the conglomerate took a new position in Constellation Brands, the maker of top-selling Mexican beers Corona, Modelo and Pacifico, of nearly 6 million shares, during the fourth quarter worth over $1.2 billion, according to a filing with the Securities and Exchange Commission. Even as President Trump threatens tariffs against Mexico.
Modelo unseated by Bud Light as the top-selling U.S. beer after the latter teamed up with transgender activist Dylan Mulvaney, which angered core customers. (Gabby Jones/Bloomberg via Getty Images / Getty Images)
Shares have fallen nearly 30% over the past 12 months.
Constellation Brands
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Bud Light, once the top-selling U.S. beer, was unseated by Modelo after it teamed up with transgender activist Dylan Mulvaney which angered core customers.
Also disclosed earlier this month, Buffett and his team kicked two S&P 500 mainstays to the curb completely, selling Vanguard’s S&P 500 ETF and SPDR S&P 500 ETF, per filings with the SEC.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VOO | VANGUARD S&P 500 ETF – USD | 551.78 | -9.55 | -1.70% |
| SPY | SPDR S&P 500 ETF TRUST – USD DIS | 599.94 | -10.44 | -1.71% |
The S&P 500 climbed to a new record this year and has gained over 22% during the last 12 months.
For those looking to invest or trade around Buffett’s “guidance and sentiments” the first leveraged and inverse single stock exchange traded funds, launched in December, could be worth a look.
“Berkshire Hathaway is one of the most widely held stocks globally and is amongst the top ten in terms of market cap.” Ed Egilinsky, managing director at Direxion, told FOX Business shortly after the ETF launched.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BRKU | DIREXION SHARES ETF TRUST DAILY BRKB BULL 2X SHS | 26.19 | -0.33 | -1.24% |
| BRKD | DIREXION SHARES ETF TRUST DAILY BRKB BEAR 1X SHS | 24.27 | +0.06 | +0.25% |
The Direxion Daily BRKB Bull 2X shares and the Direxion Daily BRKB Bull 2X shares give you both bull and bear options.
“Traders that perceive Berkshire as a stock that provides consistent returns may be interested in magnifying those returns and taking on more risk for certain short-term periods, so they might utilize our 2x bull fund (BRKU). Others might have substantial unrealized gains with their Berkshire stock holdings, but don’t want to sell their position. They could hedge those gains with a bearish position in our inverse 1X fund (BRKD).” In addition, if the stock is trending lower, a trader might consider taking an outright short term bearish view with BRKD.” he explained.
Warren Buffett, chairman and CEO of Berkshire Hathaway, makes his way to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 13, 2023. (Kevin Dietsch/Getty Images / Getty Images)
BUFFETT SLAMS REGULATORY BURDENS
Additionally, the conglomerate’s cash position swelled to a record $334 billion and Buffett singaled his heir apparent may soon take the reigns.
“At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters,” he wrote.
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