Below are Warren Buffett’s top 5 stock picks. For a comprehensive list please see Warren Buffett’s Top 10 Stocks Picks.
5. The Kraft Heinz Company (NASDAQ: KHC)
Warren Buffett has been holding a position in The Kraft Heinz Company (NASDAQ: KHC) for several years. His hedge fund kept its position unchanged during the fourth quarter. It is the fifth-largest stock holding of Buffett’s portfolio, accounting for 4.18% of the overall portfolio. Shares of Kraft Heinz performed well during the pandemic year and continues to trade in green since the beginning of this year.
Although Kraft Heinz’s stock price is down 50% in the past five years despite the 2020 surge, Berkshire Hathaway has bagged big dividends from the consumer staples company. It currently offers a dividend yield of 4.5%.
4. American Express Company (NYSE: AXP)
Warren Buffett is the long-running shareholder of the consumer finance giant American Express Company (NYSE: AXP). The stock price of AXP underperformed in 2020 but its shares are rallying since the beginning of this year amid easing restrictions on traveling and tourism activities. American Express also offers dividends to shareholders and its dividend yield stands around 1.3%.
Despite that, the company said it remains cautious about the pace of recovery and is focused on getting back to its original EPS expectations it had for 2020 in 2022.
3. The Coca-Cola Company (NYSE: KO)
Warren Buffett’s hedge fund’s position in The Coca-Cola Company (NYSE: KO) underperformed in 2020 and extended the declining trend in 2021. Its shares are down 16% in the last twelve months due to pressure on sales and earnings. Despite sluggish stock price performance, the company continues offering dividends to investors. KO is a dividend king amid its history of increasing dividends in the past 58 successive years.
Its December quarter revenue fell 5.5% year over year and 11% for the full year. Operating incomes also declined at a double-digit rate in 2020. However, the company is optimistic about its business strategies and future prospects.
2. Bank of America Corporation (NYSE: BAC)
After a down year, Bank of America Corporation (NYSE: BAC) shares are outperforming the broader market index in 2021. It is the second-largest stock holding of legendary investor’s portfolio, accounting for 11.35% of the overall portfolio. The bank offers a dividend yield of 2% at present. Bank of America revenue fell 10% in the December quarter due to low-interest income. However, the bank managed to generate positive earnings for the fourth quarter.
1. Apple (NASDAQ: AAPL)
Warren Buffett is bullish on Apple (NASDAQ: AAPL) and his investment management firm has been benefiting from the big stake in the technology giant. Although Berkshire decreased its position in Apple by 6% during the fourth quarter, the stock holding still accounts for 43% of the overall portfolio. Shares of Apple rallied close to 63% in the last twelve months.
Alger Spectra Fund highlighted few stocks including Apple is an investor letter. Here is what Alger Spectra Fund stated:
“Apple is a leading technology provider in telecommunications, computing, and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. This tight engagement is facilitating significant growth in high-margin services like streaming music, apps, and Apple Pay. Apple’s continued development of high-margin services and earnings streams for wearable devices as well as the potential contribution of 5G phones to the company’s growth supported the performance of Apple shares.”
You can also take a peek at 25 Highest Earning Billionaires in 2020 and 15 Biggest Wine Companies In The World.
