Warren Buffett’s Top Favorite Stocks for 2024

Published on May 16, 2024 at 8:55 am by Fahad Saleem in Hedge Funds, News

Warren Buffett’s Q1’2024 stock holdings data is out and the market is inundated with excitement around the Oracle of Omaha’s favorite stock picks. But unlike many other hedge funds which are fickle and revisit their investments regularly, Buffett believes in buying stocks and then holding on to them for decades.

Buffett’s “Mystery Stock Pick” Revealed

But over the past several months the market remained guessing the name of the “mystery stock” in Warren Buffett’s portfolio he hadn’t revealed. Berkshire had requested SEC for confidentiality as it was busy buying large stakes in the company. Some said it would be Alphabet, some speculated it would be a Chinese stock (Alibaba was the favorite candidate). But many wise investors said that the stock would be from the insurance or finance industry as Buffett has time and again indicated his preference for companies that are doing what he knows the best: insurance, banks, finance.

Finally, Berkshire has revealed this mystery stock pick and it’s part of our detailed list of Top 7 Favorite Stocks of Warren Buffett for 2024.

Why Isn’t Buffett Deploying His Cash Reserves?

At the latest annual meeting of Berkshire Hathaway, Warren Buffett revealed that his firm’s cash piles had swelled to about $189 billion at the end of the first quarter, with him expecting the kitty to hit $200 billion by the end of the second quarter of 2024. This begs the question: why isn’t Buffett deploying this cash? After all he was the one who once said:

“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”

“No Possibility of Eye-Popping” Gains?

Buffett’s reasoning is simple: he only invests when he finds attractive deals with “eye-popping” returns, and the market today just isn’t presenting him with any worthy opportunities. In his 2023 investor letter, Buffett went as far as to say that he sees “no possibility of eye-popping performance” in the current environment.

Buffett always sticks to his core investing principle: never invest in overvalued equities. In his latest investor letter he reiterated that for him to invest in companies, they have to be “attractively priced.”

The Size Factor

Another reason Berkshire isn’t deploying cash is its size and Buffett’s inclination towards investing only for significant gains.

“Those days are long behind us; size did us in, though increased competition for purchases was also a factor. Berkshire now has – by far – the largest GAAP net worth recorded by any American business,” Buffett said in his 2023 letter.

In this article we will take a look at the top three stock picks of Warren Buffett by analyzing his Q1’2024 portfolio. To see more stocks that are top favorites of Warren Buffett, including his mystery stock, click Warren Buffett’s 7 Top Favorite Stock Picks for 2024.

American Express Co (NYSE:AXP)

Warren Buffett’s Q1 2024 Stake: $34,520,240,283

Warren Buffett has not touched his gigantic stake in American Express Co (NYSE:AXP) since 2013, which shows the trust Oracle of Omaha has in the business, which he called “hugely successful” in his 2023 letter to Berkshire shareholders, adding:

“The lesson from Coke and AMEX? When you find a truly wonderful business, stick with it. Patience pays, and one wonderful business can offset the many mediocre decisions that are inevitable.”

American Express Co (NYSE:AXP) accounted for about 10% of the total Berkshire portfolio in the first quarter of 2024 as the fund has a $34.5 billion stake in American Express Co (NYSE:AXP).

Artisan Select Equity Fund stated the following regarding American Express Company (NYSE:AXP) in its fourth quarter 2023 investor letter:

“Our top performers this quarter were American Express Company (NYSE:AXP), Expedia and Axalta. American Express saw a 26% share price gain. The business has performed well over the past year and over our holding period. While American Express’ long-term growth and attractive business model is well known and understood, the shares had been flat to down for most of the year on fears of a recession. In a recessionary environment, consumer spending slows, which impacts revenue, and credit costs go up as consumers have a harder time paying their bills. As fears about a recession receded in Q4, investors bid up American Express shares.”

Bank of America Corp (NYSE:BAC)

Warren Buffett’s Q1 2024 Stake: $39,165,748,068

Bank of America Corp (NYSE:BAC) is the second top favorite stock of Warren Buffett. The billionaire has been owning stakes in Bank of America Corp (NYSE:BAC) since the third quarter of 2017, when he bought about 69 million shares of Bank of America Corp (NYSE:BAC). As of the end of Q1’2024, this stake has swelled to over 1 billion shares.

Wolfe Research’s Steven Chubak, who had downgraded Bank of America Corp (NYSE:BAC) back in October 2021, recently turned bullish on the banking giant, upgrading the stock to Outperform from Peer Perform. Chubak thinks Bank of America Corp’s (NYSE:BAC) Q1 results show “better asset repricing trends” and he sees Bank of America Corp (NYSE:BAC) approaching “the point of NII inflection where ‘under-earning’ banks including both BAC and SCHW [Charles Schwab] should post stronger gains following multiple years of underperformance.”

Sequoia Fund stated the following regarding Bank of America Corporation (NYSE:BAC) in its fourth quarter 2023 investor letter:

“Exits last year included Netflix, Bank of America Corporation (NYSE:BAC) and Micron. As discussed in our Q1 shareholder letter, we exited our investment in Bank of America soon after making it, as our thesis was quickly undermined by the regional banking crisis and the regulatory developments that it catalyzed. We think both Bank of America and Micron were purchased at conservative prices given the facts at hand, but the facts changed and we moved on.”

Apple Inc (NASDAQ:AAPL)

Warren Buffett’s Q1 2024 Stake:$135,360,901,805

Buffett’s relationship with Apple Inc (NASDAQ:AAPL) is currently the topic of market chatter as the Oracle of Omaha cut his stake in Apple Inc (NASDAQ:AAPL) by 13%. History shows that when Buffett isn’t happy with a company, he slowly begins to slash stakes in it, ultimately removing it from its portfolio. Buffett cutting stakes in Apple Inc (NASDAQ:AAPL) got more attention as Apple Inc (NASDAQ:AAPL) faces growth challenges in iPhone sales and faces market criticism amid lack of AI catalysts.

“No” was Warren Buffett’s short answer to a question asking him whether he believed Apple Inc (NASDAQ:AAPL) as an investment was losing shine during Berkshire’s latest annual meeting.

Buffett also added that it’s “extremely likely” that Apple Inc (NASDAQ:AAPL) would be Berkshire’s “largest holding” by the end of 2024.

That means Apple Inc (NASDAQ:AAPL) is the top favorite stock of Warren Buffett, for now. But it’s also a subtle nudge to Apple Inc (NASDAQ:AAPL) management to do something about the growth problem before it loses the trust of Berkshire.

The London Company Large Cap Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its first quarter 2024 investor letter:

“Reduced: Apple Inc. (NASDAQ:AAPL) – Reduction reflects strong performance in 2023 and resulting elevated valuation. We believe the outlook for AAPL remains strong with slow growth in iPhone (now #1 global market share) and faster growth in the higher margin services business. R&D will continue to drive new products and AAPL now has over 2 billion installed devices around the world. While near term earnings expectations appear reasonable, we felt it was prudent to reduce the position size based on risks to valuation.”

These were just 3 of the Top Favorite Stocks of Warren Buffett.

Click to continue reading and see 7 More Top Favorite Stocks of Warren Buffett for 2024 [including Buffett’s Mystery Stock Pick]

NYSE:AXP Headline NYSE:BAC NASDAQ:AAPL Show more...

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on June 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $29.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up