In this article, we discuss the 5 long-term stocks in Berkshire Hathaway’s portfolio . If you wish to see our detailed analysis of the fund’s investment philosophy and performance, go directly to the Berkshire Hathaway Stock Portfolio: 10 Long-Term Stock Picks.
5. The Kraft Heinz Company (NASDAQ:KHC)
Berkshire Hathaway’s Stake Value: $13.2 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 4.53%
Number of Hedge Fund Holders: 33
Commonly known as Kraft Heinz, The Kraft Heinz Company (NASDAQ:KHC), is one of the world’s leading food and beverage companies. Based in Illinois, the company ranks fifth on our list of the 10 long-term stock picks of Berkshire Hathaway.
For the second quarter of 2021, Warren Buffett’s Berkshire Hathaway holds over 325.6 million shares of The Kraft Heinz Company (NASDAQ:KHC), worth more than $13.2 billion. These shares account for 4.53% of the fund’s portfolio value. Of the 873 elite funds tracked by Insider Monkey, 33 were long in The Kraft Heinz Company (NASDAQ:KHC) at the end of June.
On August 4, the company issued its quarterly earnings report for the second quarter of 2021, with earnings per share at $0.78, crossing market estimates by $0.06. Additionally, the revenue for the quarter came in at $6.62 billion, surpassing the predicted revenue by $65.74 million.
On September 21, Morgan Stanley analyst Pamela Kaufman began coverage of The Kraft Heinz Company (NASDAQ:KHC) with an Equal Weight rating alongside a price target of $37 on the company’s shares.
4. The Coca-Cola Company (NYSE:KO)
Berkshire Hathaway’s Stake Value: $21.6 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 7.38%
Number of Hedge Fund Holders: 62
In the second quarter of 2021, The Coca-Cola Company (NYSE:KO) reported an EPS of $0.68, beating estimates by $0.12. The company’s revenue for the quarter came in at $10.13 billion, an increase of 42% on a year-over-year basis, and beat revenue estimates by $823.1 million. The stock has gained 11.22% in the past twelve months.
On July 22, Truist analyst Bill Chappell maintained a Buy rating on The Coca-Cola Company (NYSE:KO) and increased his price target for the stock to $65 from $60.
According to the latest 13F filings, Berkshire Hathaway owns 400 million shares of The Coca-Cola Company, worth more than $21.6 billion, and representing 7.38% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 62 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Coca-Cola Company (NYSE:KO) worth roughly $24.96 billion. This is compared to 61 hedge funds in the previous quarter with a total stake value of approximately $24.90 billion.
3. American Express Company (NYSE:AXP)
Berkshire Hathaway’s Stake Value: $25 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 8.54%
Number of Hedge Fund Holders: 52
Based in New York, the multinational financial services firm American Express Company (NYSE:AXP) comes in at third on our list of the 10 long-term stock picks of Berkshire Hathaway. The company offers credit lending and network processing services.
For the second quarter of 2021, Warren Buffett’s hedge fund held over 151.6 million shares of American Express Company (NYSE:AXP), amounting to more than $25 billion in worth.
On September 16, investment advisory Bank of America upgraded American Express Company (NYSE:AXP) stock to Neutral from Underperform with a price target of $169.
2. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake Value: $41.6 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 14.21%
Number of Hedge Fund Holders: 87
Bank of America Corporation (NYSE:BAC) is a multinational bank and financial services holding company based in North Carolina. Ranked second on our list of the 10 long-term stock picks of Berkshire Hathaway, Bank of America Corporation (NYSE:BAC) has a market capitalization of $371.14 billion.
On October 11, Jefferies analyst Ken Usdin raised his price target on Bank of America Corporation (NYSE:BAC) to $48 from $41, and kept a Hold rating on the shares.
In the second quarter of 2021, Bank of America Corporation (NYSE: BAC) reported an EPS of $1.03, beating estimates by $0.27. The company’s revenue in the second quarter came in at $21.5 billion.
As of Q2 2021, Berkshire Hathaway owns approximately 1 billion shares of Bank of America Corporation (NYSE:BAC), valued at over $41.6 billion. The company represents 14.21% of the fund’s investment portfolio. At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $46 billion in Bank of America Corporation (NYSE: BAC), down from 97 in the previous quarter worth $45 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
1. Apple Inc. (NASDAQ:AAPL)
Berkshire Hathaway’s Stake Value: $121.5 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 41.46%
Number of Hedge Fund Holders: 138
Berkshire Hathaway holds over 887 million shares of Apple Inc. (NASDAQ:AAPL), amounting to $121.5 billion in worth. The company represents 41.46% of the fund’s total portfolio value. By the end of the second quarter of 2021, 138 hedge funds out of the 873 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ:AAPL), worth roughly $145.5 billion, up from 127 hedge funds in the preceding quarter, with stakes worth approximately $131 billion.
On October 15, Evercore ISI analyst Amit Daryanani maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL), alongside a $180 price target on the company’s shares, noting that the firm is gaining some share in the digital ads market
ClearBridge Investments, in its Q1 2021 investor letter, mentioned Apple Inc. (NASDAQ: AAPL). Here is what the fund said:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
You can also take a look at 12 Best Value Dividend Stocks to Buy Now and Top 10 Undervalued Tech Stocks
