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Warren Buffett’s Top 10 Stock Holdings, and Why He

Owns Them

• As of the most recent regulatory filing, Berkshire Hathaway owns stock in 43 different companies.• The size of these stock positions varies greatly – Some of Berkshire’s positions are just a few million

dollars in size, while others are in the tens of billions.• Here’s a look at Berkshire’s 10 largest stock holdings,

and a few reasons why Buffett and Company like each one as a long-term investment.

1. Kraft Heinz (NYSE: KHC)

• Buffett loves Kraft Heinz because it’s a “forever” business.

• According to Buffett: “These are brands I liked 30-plus years ago…and I think I’ll like them 30 years from now.”

• Buffett has also publicly praised the company’s managers.

Value: $23.0 billionShares owned: 325.6 million% of company: 26.6%

2. Wells Fargo (NYSE: WFC)

• Wells Fargo has historically done a great job of managing risk.

• Just before Berkshire first bought Wells Fargo, Buffett wrote to shareholders that “we look for first-class businesses accompanied by first-class managements.”

Value: $21.1 billionShares owned: 470.3 million% of company: 9.26%

3. Coca-Cola (NYSE: KO)

• Coca-Cola has incredible brand power and a huge distribution network.

• Buffett has said that Coca-Cola is such a great business that a ham sandwich could run the company.

Value: $16.9 billionShares owned: 400 million% of company: 9.36%

4. International Business Machines (NYSE: IBM)

• Buffett has called IBM’s management “brilliant”, and praised the company’s shareholder-friendly actions in his 2011 letter to shareholders.

• He especially likes IBM’s history of aggressively buying back its own stock.

Value: $9.5 billionShares owned: 81.0 million% of company: 8.62%

5. American Express (NYSE: AXP)

• Buffett likes that Amex makes money from spending on its cards and transaction fees/finance charges.

• American Express is also one of the world’s most valuable brands.

Value: $7.7 billionShares owned: 151.6 million% of company: 15.5%

6. Phillips 66 (NYSE: PSX)

• Buffett has been aggressively buying more Phillips 66 as oil prices drop.

• This is a classic Buffett principle: As a sector is getting crushed, buy the best-in-breed stocks at a discount.

Value: $5.4 billionShares owned: 74.0 million% of company: 13.9%

Paul Adams

7. Procter & Gamble (NYSE: PG)

• Buffett loves businesses that are easy to understand, and P&G definitely qualifies.

• Also, P&G’s brands are widely known and trusted, and therefore represent a sustainable competitive advantage.

Value: $4.2 billionShares owned: 52.8 million% of company: 1.98%

8. Wal-Mart Stores (NYSE: WMT)

• Wal-Mart is a business that works in good times and bad – the company’s revenue actually increased during the 2008-09 financial crisis.

• Wal-Mart is a dominant retailer, and there’s no reason to believe that will change.

Value: $3.65 billionShares owned: 56.2 million% of company: 1.76%

9. U.S. Bancorp (NYSE: USB)

• U.S. Bancorp is one of the best-run banks in the United States.

• The bank consistently operates with greater efficiency and profitability than peers.

Value: $3.16 billionShares owned: 85.1 million% of company: 4.91%

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10. DaVita Healthcare Partners (NYSE: DVA)

• DaVita is a relatively simple business that has significant pricing power.

• The company has a large market share, and the market is growing.

Value: $23.0 billionShares owned: 325.6 million% of company:26.6%

Michael Rivera

The Next Billion-Dollar

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