Warren Buffett Stock Portfolio: Top 5 Stock Picks

1. Apple Inc. (NASDAQ:AAPL)

Value of Berkshire Hathaway‘s 13F Position: $124 Billion

Number of Hedge Fund Shareholders: 141

Apple Inc. (NASDAQ:AAPL) has been Warren Buffett’s top stock pick for five years and has commanded a gigantic percentage of his 13F portfolio over the past two years after he nearly quadrupled the size of his Apple position during Q3 2020. Berkshire’s 13F exposure to Apple hasn’t fallen below 40% in the two years since. The position was left unchanged during Q3 at nearly 895 million shares. To put Buffett’s gargantuan $124 billion stake in Apple into context, there are only a handful of hedge funds in the world that even have $124 billion in assets under management, let alone that much money invested into a single stock.

The iPhone still accounts for more than half of Apple Inc. (NASDAQ:AAPL)’s revenue and there are some concerns about the company’s reliance on a small number of manufacturers, namely those in China, where Covid lockdowns and protests threaten to upend Apple’s supply chain. The company is working to bring more of its production in-house in the future, but there’s no escaping its current predicament.

Apple is also looking to diversify its offerings so it’s not as reliant on the iPhone in general, and does have some intriguing growth opportunities in the fintech and healthcare spaces. The company has significantly ramped up its R&D initiatives over the past two years, growing spending from $18.8 billion in 2020 to over $26 billion this year, though that still pales in comparison to some of its largest tech rivals in terms of R&D budget as a percentage of revenue.

Wedgewood Partners remains bullish on Apple Inc. (NASDAQ:AAPL)’s dynamic and valuable combination of hardware and software, as noted in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

For more of the latest stock picks worth considering for your portfolio, check out the 12 Best Nancy Pelosi Stocks To Buy and the 15 Best Self-Driving Car Stocks To Buy.

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