In this article we discuss Warren Buffett’s 5 most profitable investments of all time. If you want to read our detailed analysis of these investments, go directly to Warren Buffett’s Most Profitable Investments of All Time.
5. Mondelez International, Inc. (NASDAQ: MDLZ)
Number of Hedge Fund Holders: 45
Mondelez International, Inc. (NASDAQ: MDLZ) is a Chicago-based company that owns food, beverage, and snack food brands. It was founded in 2012 and is ranked fifth on our list of Warren Buffett’s most profitable investments of all time. The company’s shares have returned more than 25% to investors over the past year. Buffett first invested in the company in 2007. However, he has not increased his stake in the firm by much over the years. The firm represents 0.01% of the portfolio of Berkshire.
Berkshire holds more than 550,000 shares in Mondelez International, Inc. (NASDAQ: MDLZ) that are worth over $33 million. The food company has seen share price soar by 8% over the past year and a half, offering respectable returns to shareholders. The company is famous for brands such as Oreo and Cadbury, among others.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Trian Partners is a leading shareholder in Mondelez International, Inc. (NASDAQ: MDLZ) with 9.3 million shares worth more than $549 million.
4. United Parcel Service, Inc. (NYSE: UPS)
Number of Hedge Fund Holders: 44
United Parcel Service, Inc. (NYSE: UPS) is a Georgia-based shipping company founded in 1907. It is placed fourth on our list of Warren Buffett’s most profitable investments of all time. The stock has returned more than 102% to investors over the course of the past twelve months. Buffett first bought a stake in the shipping firm in 2006 when he invested more than $113 million to buy over 1.4 million shares. Buffett has since trimmed his stake in the company and it now represents just 0.004% of the Berkshire portfolio.
However, United Parcel Service, Inc. (NYSE: UPS) is on the most profitable investment list because the stock of the company has rallied over the past year. This means that the shares have returned more than 323% to investors since Buffett first bought stake in the firm. Buffett has held on to the stock over the years in anticipation of such a rally and it remains to be seen whether he will maintain his small stake in the shipping firm in the coming months or cash out.
Out of the hedge funds being tracked by Insider Monkey, Washington-based Bill & Melinda Gates Foundation Trust is a leading shareholder in United Parcel Service, Inc. (NYSE: UPS) with 2.8 million shares worth more than $476 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and United Parcel Service, Inc. (NYSE: UPS) was one of them. Here is what the fund said:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, United Parcel Service also lagged in the quarter after previously generating strong returns over extended periods.”
3. The Coca-Cola Company (NYSE: KO)
Number of hedge fund holders: 61
The Coca-Cola Company (NYSE: KO) is a Georgia-based company that makes and sells different kinds of beverages. It was founded in 1892 and is ranked third on our list of Warren Buffett’s most profitable investments of all time. The company’s shares have returned more than 22% to investors in the past year. Buffett first bought stake in the company back in 1987 as the shares were attractively priced after an economic recession. The beverage-maker represents one of the oldest holdings of Berkshire and accounts for 8% of its portfolio.
The Coca-Cola Company (NYSE: KO) stock has jumped by more than 115% over the past decade, and in addition to this increase in value, the firm is also one of the largest dividend payers to Berkshire. It is estimated that Buffett had made more than $20 billion on his $1.3 billion bet on The Coca-Cola Company (NYSE: KO) by the end of 2020. Buffett had told investors in a letter in 1988 that he expected to hold onto the shares of the beverage maker for a long time.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based firm Berkshire Hathaway is a leading shareholder in The Coca-Cola Company (NYSE: KO) with 400 million shares worth more than $21 billion.
2. Bank of America Corporation (NYSE: BAC)
Number of Hedge Fund Holders: 97
Bank of America Corporation (NYSE: BAC) is a North Carolina-based financial services company founded in 1998. It is placed second on our list of Warren Buffett’s most profitable investments of all time. The stock has offered investors returns exceeding 74% in the past twelve months. Buffett first started buying stakes in the bank in 2011 at a reduced price and invested $5 billion initially, increasing his stake in the bank gradually afterwards. In 2017, he also made use of a previous warrant to buy more stake in the firm at a huge discount.
Bank of America Corporation (NYSE: BAC) now represents the second largest holding of Berkshire at close to 14.5% of its portfolio. The Nebraskan firm owns more than 1 billion shares in the bank worth over $39 billion. In the latter part of 2020, as Buffett sold his stakes in many top bank holdings, he actually added to his shares in Bank of America Corporation (NYSE: BAC), affirming his future bullish view on the firm.
At the end of the first quarter of 2021, 97 hedge funds in the database of Insider Monkey held stakes worth $45 billion in Bank of America Corporation (NYSE: BAC), down from 99 in the previous quarter worth $35 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)
Number of Hedge Fund Holders: 127
Apple Inc. (NASDAQ: AAPL) is a California-based technology company founded in 1976. It is ranked first on our list of Warren Buffett’s most profitable investments of all time. The company’s shares have returned more than 50% to investors over the course of the past year. Buffett first bought a stake in Apple Inc. (NASDAQ: AAPL) in late 2016, and has added to his initial investments slowly every quarter since, only selling a small portion at the end of 2020. Berkshire owns more than 5% of Apple Inc. (NASDAQ: AAPL) through shares worth over $110 billion.
Apple Inc. (NASDAQ: AAPL) stock has soared by almost 400% since Buffett first started investing. The tech company now represents the largest holding of Berkshire, accounting for more than 40% of its entire portfolio. According to calculations by news platform CBS, Buffett has made more than $100 billion on his investment on Apple Inc. (NASDAQ: AAPL), including dividend payments over the years that have fetched a handsome $3 billion.
At the end of the first quarter of 2021, 127 hedge funds in the database of Insider Monkey held stakes worth $130 billion in Apple Inc. (NASDAQ: AAPL), down from 146 in the preceding quarter worth $142 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
