In this article, we will be taking a look at the 10 Tech Stocks to Buy According to Billionaire Warren Buffett.
Known as the “Oracle of Omaha”, 92-year-old Warren Buffett is considered one of the most successful investors of all time with a personal net worth of $96.9 billion. Buffet runs Berkshire Hathaway Inc. (NYSE:BRK-B) which owns several businesses such as GEICO, Berkshire Hathaway Reinsurance Group, railroad businesses, Berkshire Hathaway Energy, and several other wholly owned or majority owned businesses. Apart from these companies, Berkshire Hathaway also maintains an extensive portfolio of marketable securities, mainly comprising investments in shares of publicly listed companies.
Buffet has one of the most successful investment track records with shares of his Berkshire Hathaway growing at a compounded Annual gain of 20.1% from 1965 to 2021, as compared to a measly 10.5% for the S&P 500. Buffet’s success is attributed to multiple factors, such as buying cyclical businesses, holding stocks for decades, and a portfolio ripe with dividend stocks.
Buffet believes in a concentrated approach to investment with a focus on a small number of investments trading at prices lower than the intrinsic values of these businesses. This is evident from the long holding periods for his investments and a concentration of more than 74% of his equity portfolio in 5 stocks.
As of Q2 2022, Warren Buffett’s Berkshire Hathaway’s 13F portfolio is valued at $340 billion. The portfolio comprises 49 total positions, with the exposure to 9 of these positions increased in the latest quarter. During the second quarter, Berkshire Hathaway reduced its positions in 6 stocks and sold out 2 positions. The biggest increases in existing positions during the quarter were exhibited in Amazon.com, Inc. (NASDAQ:AMZN) and Ally Financial Inc. (NYSE:ALLY), which increased by 1900% and 235%, respectively.
The list of 10 tech stocks to buy according to billionaire Warren Buffett accounted for 47.00% of the portfolio weight with the highest concentration in Apple Inc. (NASDAQ:AAPL) accounting for 40.76% of the portfolio weight.
Although Warren Buffett isn’t known as being a tech investor, Buffett has two investing lieutenants, Ted Weschler and Todd Combs, who invest more in technology. The two generally invest smaller amounts than Buffett and their investing decisions are likely why some tech stocks make it to Berkshire Hathaway’s 13F portfolio at the end of Q2 2022.
Given the market volatility, stocks could decline further if economic data doesn’t meet expectations. Nevertheless, the low valuations for some quality stocks could offer opportunities for long term investors.
Methodology
For our list, we selected technology stocks in billionaire Warren Buffett’s Berkshire Hathaway’s Q2 2022 13F portfolio and we ranked them based on the respective portfolio weight of these stocks. We also included the number of hedge funds in our database that held shares in the same stock as of the end of Q2 2022.
10 Tech Stocks to Buy According to Billionaire Warren Buffett
10. T-Mobile US, Inc. (NYSE:TMUS)
Berkshire Hathaway’s Stake Value: $705,259,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 96
T-Mobile US, Inc. (NYSE:TMUS) is a wireless network operator based in Bellevue, Washington delivering an advanced 4G LTE and a transformative nationwide 5G network through its flagship brands, T-Mobile, and Metro by T-Mobile. It had 110 million total customers as of June 30, 2022.
Warren Buffett’s Berkshire Hathaway owns 5,242,000 shares of T-Mobile US, Inc., accounting for 0.23% of its 13F portfolio. The stock has been part of the fund’s portfolio since Q3 2020 and there has been no change in the shareholding since then.
Earlier this year in July, T-Mobile US, Inc. released the financial results for Q2 2022. Its revenue decreased by 1% y-o-y to $19.7 billion, while it reported a net loss of $108 million, for three months ended June 30, 2022. It reported a normalized EPS of $1.94, beating the consensus by $1.57.
In September, T-Mobile US, Inc. disclosed in a regulatory filing that the company’s board of directors had authorized a stock repurchase program for up to $14 billion of its common stock, through September 30, 2023. Following the news, Raymond James analyst Ric Prentiss raised the price target on T-Mobile shares to $178 from $175 and maintained a ‘Strong Buy’ rating.
As of Q2 2022, 96 of the 895 hedge funds tracked by Insider Monkey owned shares of T-Mobile US, Inc., valued at $6.9 billion. Its largest shareholder was Viking Global with ownership of 9.2 million shares valued at $1.2 billion.
Alongside HP Inc. (NYSE:HPQ), Activision Blizzard, Inc. (NASDAQ:ATVI), and Apple Inc., T-Mobile US, Inc. is a tech stock held by Warren Buffett’s Berkshire Hathaway at the end of Q2 2022.
9. Snowflake Inc. (NYSE:SNOW)
Berkshire Hathaway’s Stake Value: $851,795,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 65
Snowflake Inc. (NYSE:SNOW) is a leading cloud platform provider allowing customers to use its Data Cloud platform to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Customers use its platform to execute workloads including applications, collaboration, cybersecurity, data engineering, data lake, data science, data warehousing, and unistore.
Snowflake Inc. accounted for 0.28% of Berkshire Hathaway’s 13F portfolio with 6,125,376 shares owned. The fund acquired the shares in Snowflake’s IPO in September 2020 and there has been no change in the holding since then.
Earlier in August, Snowflake Inc. released the financial results for quarter ended July 31, 2022. Its revenue increased by 83% y-o-y to $497 million, while its net loss increased by 17% y-o-y to $223 million, for the three months. Normalized EPS for the quarter was recorded at $0.01, beating the consensus by $0.02.
Following the earnings release, analysts at Truist, and Loop Capital raised price targets on Snowflake Inc. shares while maintaining a ‘Buy’ rating for the stock. Loop Capital is targeting a $210 share price while Truist has a $225 price target on Snowflake Inc. shares.
As of 2Q 2022, 65 of the 895 hedge funds tracked by Insider Monkey were long Snowflake Inc., holding shares valued at $5.1 billion. Altimeter Capital Management was the hedge fund with largest shareholding in Snowflake Inc., owning 17 million shares valued at $2.4 billion.
8. Amazon.com, Inc. (NASDAQ:AMZN)
Berkshire Hathaway’s Stake Value: $1,132,836,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 252
Amazon.com Inc, is a multinational technology company operating online and physical stores where it sells its own products as well as allows third-party sellers to sell their products to consumers. It manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and develops and produces media content; and provides cloud computing services through Amazon Web Services platform. Its ecommerce platform is home to more than 1.7 million small and medium businesses.
Warren Buffett’s Berkshire Hathaway’s holds 10,666,000 shares of Amazon.com Inc, accounting for 0.37% of its 13F portfolio, as of Q2 2022. The fund increased its stake by 1,900% during the latest quarter, as compared to the previous one.
In July, Amazon released its financial results for the second quarter of 2022. Its total revenue increased by 7% y-o-y to $121.2 billion, while it reported a net loss of $2 billion for the three months ended June 30, 2022. The normalized EPS was recorded at (-$0.20) for the quarter, missing the consensus by $0.32.
Amazon.com Inc is also highly sought after by hedge funds with the second highest number of hedge funds as 252 out of the 895 tracked by Insider Monkey hold its shares with a total value of $30.1 billion. The ecommerce giant ranks #1 on the list of 10 stocks to buy now according to billionaire Warren Buffett based on the number of hedge funds invested in the stock.
Oakmark Funds, an investment management firm, mentioned Amazon.com, Inc. in its second quarter of 2022 investor letter. Here’s what they said:
“Amazon is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”
7. The Liberty SiriusXM Group (NASDAQ:LSXMK)
Berkshire Hathaway’s Stake Value: $1,557,660,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.51%
Number of Hedge Fund Holders: 48
The Liberty SiriusXM Group (NASDAQ:LSXMK) comprises Liberty Media’s ownership in SiriusXM Holdings Inc. (NASDAQ:SIRI) and Live Nation Entertainment Inc. (NYSE:LYV) and minor interests in the Formula One Group and the Braves Group. Liberty Media owns 82.3% of SiriusXM which operates two audio entertainment businesses, SiriusXM and Pandora, and 31% of Live Nation, a leading live entertainment company focused on concerts, sponsorship and advertising and ticketing.
Warren Buffett’s Berkshire Hathaway owns 43,208,291 shares of The Liberty SiriusXM Group, accounting for 0.51% of its 13F portfolio, as of Q2 2022. The stock has been part of Berkshire Hathaway’s portfolio since Q2 2016 with no changes in share ownership since the beginning of 2020.
Earlier this year in August, The Liberty SiriusXM Group released its financial results for the second quarter of 2022. Its total revenues increased by 4% y-o-y to $2.2 billion, while its net income was recorded at $292 million, for three months ended June 30, 2022. The normalized EPS was recorded at $1.24 for the quarter, beating the consensus by $0.52.
As of Q2 2022, 48 hedge funds tracked by Insider Monkey held shares of The Liberty SiriusXM Group, worth $3.4 billion.
6. Charter Communications, Inc. (NASDAQ:CHTR)
Berkshire Hathaway’s Stake Value: $1,793,974,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.59%
Number of Hedge Fund Holders: 68
Stamford, Connecticut-based Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. It offers a full range of residential and business services including Spectrum Internet, TV, Mobile and Voice.
Warren Buffett’s Berkshire Hathaway owns 3,828,941 shares of Charter Communications, Inc., accounting for 0.59% of its 13F portfolio. Charter Communications, Inc. was added to the fund’s portfolio in Q2 2016 and there has been no change in the number of shares held by the fund over the course of last three quarters.
In July, Charter Communications, Inc. reported the financial results for the second quarter of 2022. Its revenue increased by 6% y-o-y to $13.6 billion, while its net income increased by 44% y-o-y to $1.5 billion, for the three months ended June 30, 2022. It reported a normalized EPS of $8.80 for the quarter, beating the consensus by $1.68.
In August, KeyBanc analyst Brandon Nispel raised the price target on Charter Communications, Inc. shares to $592 from $555 and retained an ‘Overweight’ rating on the shares.
According to the Insider Monkey data on 895 leading hedge funds, 68 hedge funds were long Charter Communications, Inc. shares as of Q2 2022, with the total shares held by hedge funds valued at $5.7 billion. Harris Associates was the largest shareholder on record with ownership of 4.2 million shares valued at $1.9 billion.
Like Charter Communications, Inc., HP Inc., Activision Blizzard, Inc., and Apple Inc. are tech stocks held by Warren Buffett’s Berkshire Hathaway in Q2 2022.
5. Paramount Global (NASDAQ:PARA)
Berkshire Hathaway’s Stake Value: $1,935,448,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.64%
Number of Hedge Fund Holders: 42
Paramount Global (NASDAQ:PARA) is a leading global media and entertainment company comprising studios, networks, and streaming services, through a portfolio of brands that includes well-known names such as CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others.
Warren Buffett’s Berkshire Hathaway owns 78,421,645 shares of Paramount Global, accounting for 0.64% of its 13F portfolio. Paramount Global was added to the portfolio in the previous quarter and was further increased by 14% in Q2 2022.
Earlier this year in August, Paramount Global released its financial results for the quarter ended June 30, 2022. Its total revenue increased by 19% y-o-y to $7.8 billion, while it reported a net income of $422 million, for the three months. The normalized EPS was recorded at $0.64 for the quarter, beating the consensus by $0.02.
As of Q2 2022, 42 of the 895 hedge funds tracked by Insider Monkey were long Paramount Global holding shares worth $2.6 billion. Warren Buffet’s Berkshire Hathaway is its biggest shareholder.
4. Verisign, Inc. (NASDAQ:VRSN)
Berkshire Hathaway’s Stake Value: $2,144,436,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.71%
Number of Hedge Fund Holders: 35
Verisign, Inc. (NASDAQ:VRSN), based in Reston, Virginia, is a leading global provider of domain name registry services and internet infrastructure. It enables the security, stability, and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services.
As of Q2 2022, Warren Buffett’s Berkshire Hathaway holds 12,815,613 shares of Verisign, Inc., accounting for 0.71% of the 13F portfolio of the fund. Verisign, Inc. has been part of the fund’s portfolio since Q2 2012 and the number of shares owned have only had minor changes since Q2 2014.
In July, Verisign, Inc. released the financial results for second quarter of 2022. Its revenue increased by 7% y-o-y to $352 million, while its net income increased by 13% y-o-y to $167 million, for three months ended June 30, 2022. It reported a normalized EPS of $1.54, beating the consensus by $0.02.
As of Q2 2022, 35 of the 895 hedge funds tracked by Insider Monkey owned shares of Verisign, Inc., valued at $4.1 billion. Verisign, Inc. ranks #4 on the list of 10 tech stocks to buy now according to billionaire Warren Buffett based on the portfolio weight.
3. HP Inc. (NYSE:HPQ)
Berkshire Hathaway’s Stake Value: $3,424,725,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 1.14%
Number of Hedge Fund Holders: 35
Palo Alto, California-based HP Inc. is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services. It has operations in 170 countries and boasts 250,000 channel partners.
As of Q2 2022, Warren Buffett’s Berkshire Hathaway holds 104,476,035 shares of HP Inc., accounting for 1.14% of the fund’s 13F portfolio. The stock was added to the fund’s portfolio in the previous quarter and ranks #3 on the list of 10 tech stocks to buy now according to billionaire Warren Buffett based on the portfolio weight.
In August, HP Inc. released the financial results for the quarter ended July 31, 2022. Its net revenue declined by 4% y-o-y to $14.7 billion, while its net income increased by 1% y-o-y to $1.1 billion, for the three months. It reported a normalized EPS of $1.04 for the quarter, narrowly beating the consensus by $0.01.
Also in August, HP Inc. completed the previously announced acquisition of Poly, a leading global provider of workplace collaboration solutions, in an all-cash transaction implying a total enterprise value of $3.3 billion. The acquisition is expected to strengthen HP’s hybrid work solutions offerings.
As of Q2 2022, 35 of the 895 hedge funds tracked by Insider Monkey held HP Inc. shares, valued at a combined total of $3.7 billion.
2. Activision Blizzard, Inc. (NASDAQ:ATVI)
Berkshire Hathaway’s Stake Value: $5,325,713,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 1.77%
Number of Hedge Fund Holders: 84
Activision Blizzard, Inc. is one of the world’s leading video games and interactive entertainment company with operations across North America, Asia, and Europe.
As of Q2 2022, Warren Buffett’s Berkshire Hathaway’s holds 68,401,150 shares of Activision Blizzard, Inc., accounting for 1.77% of the 13F portfolio. The fund increased the number of shares it owns by 7% in Q2 2022, as compared to the previous quarter.
Earlier in the year, Microsoft agreed to buy Activision Blizzard, Inc. for $95 per share in an all-cash deal that hasn’t closed yet.
Activision Blizzard, Inc. is among the top 30 stocks based on the number of hedge funds holding its shares. As of Q2 2022, 84 of the 895 hedge funds tracked by Insider Monkey held its shares with a total value of $9.2 billion. The leading games developer ranks #2 on the list 10 tech stocks to buy according to billionaire Warren Buffett based on the number of hedge funds invested in the stock and its portfolio weight.
1. Apple Inc. (NASDAQ:AAPL)
Berkshire Hathaway’s Stake Value: $122,337,373,000
Percentage of Berkshire Hathaway’s 13F Portfolio: 40.76%
Number of Hedge Fund Holders: 128
Apple Inc. is a leading technology company focused on the designing, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services.
Major products of Apple Inc. include the iPhone, Mac PCs, iPad, and accessories while service offerings include Apple Care, Cloud Services, Digital Content and Payment services. iPhone sales accounted for more than half of its revenue in the last fiscal year. The company announced the launch of iPhone 14 in the first week of September which could result in a surge in the company’s revenue.
Warren Buffett’s Berkshire Hathaway owns 894,802,319 shares of Apple Inc., accounting for 40.76% of its 13F portfolio. The fund increased its stake by 1% in Q2 2022, as compared to the previous quarter.
Apple Inc. is among the favorites of hedge funds, with 128 of the 895 hedge funds tracked by Insider Monkey holding its shares valued at a whopping $143 billion. Warren Buffet’s Berkshire Hathaway is its biggest shareholder.
You can also read Warren Buffett is Decreasing Stakes in These 6 Stocks and 10 Dividend Stocks to Buy According to Billionaire Stanley Druckenmiller’s Duquesne Capital
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This article is originally published at Insider Monkey.
