In this article, we discuss the 5 stocks to watch in the portfolio of Warren Buffett. If you want to read our detailed analysis of these stocks, go directly to Warren Buffett’s Picks: 10 Stocks to Watch.
5. VeriSign, Inc. (NASDAQ:VRSN)
Number of Hedge Fund Holders: 40
VeriSign, Inc. (NASDAQ:VRSN) is a long-term holding of Berkshire. The fund first acquired a stake in the company in the second quarter of 2012, before selling it all in the next quarter. However, it purchased a stake in the firm again in the fourth quarter of that year worth $143 million. It then added to that position through 2014. At the end of September, the holding was valued at over $2.6 billion.
At the end of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in VeriSign, Inc. (NASDAQ:VRSN), down from 41 in the preceding quarter worth $6.1 billion.
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) is one of the relatively new holdings of the Buffett-led fund. In the third quarter of 2020, Berkshire purchased a stake worth $3.1 billion in the oil giant. It then sold almost half of that stake in the first quarter of this year before adding slightly to the position in the third quarter. The holding is presently worth $2.9 billion.
At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Chevron Corporation (NYSE:CVX), up from 50 in the preceding quarter worth $4.2 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 74
13F filings show that Berkshire first acquired a stake in Charter Communications, Inc. (NASDAQ:CHTR) back in the second quarter of 2016. It was worth $2 billion at the time. The fund has slashed that stake steadily over the years. However, the appreciation in the share price means that the holding was worth $3 billion at the end of September 2021.
At the end of the third quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $18.7 billion in Charter Communications, Inc. (NASDAQ:CHTR), down from 75 the preceding quarter worth $19.4 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Charter Communications, Inc. (NASDAQ:CHTR) 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 communication services, where Charter trailed after generating robust returns earlier in the recovery.”
2. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 46
The Bank of New York Mellon Corporation (NYSE:BK) provides financial products and services. The Bank of New York Mellon Corporation (NYSE:BK) is among the top ten holdings of the Berkshire portfolio and is one of the long-term investments of Buffett. The billionaire first invested in the company in the fourth quarter of 2020, around the time he also invested in other finance stocks, picking them up at cheap prices after the crisis of 2009. The stake was worth just $54 million and was sold later. However, Buffett purchased another stake in the firm in the third quarter of 2013. The holding was worth $744 million in 2013 and is now valued at more than $3.7 billion.
At the end of the third quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in The Bank of New York Mellon Corporation (NYSE:BK), down from 52 the preceding quarter worth $4.9 billion.
1. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE: VZ) represents close to 3% of the Berkshire portfolio. The fund invested in the company in 2014 but sold that stake in 2016. In the third quarter of 2020, it purchased another stake in the firm worth $3.4 billion. It has since added to that position handsomely and the stake is now worth $8.5 billion.
At the end of the third quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $10.3 billion in Verizon Communications Inc. (NYSE:VZ), down from 63 in the previous quarter worth $10.9 billion.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
You can also take a peek at 10 High-Yield Dividend Stocks with Payout Ratio Less than 55% and 10 Stocks to Buy Today According to British Billionaire David Harding.
