🔥 Warren Buffett Just Bought This Stock!

Drowning in Cash 💸

Warren Buffett's Berkshire Hathaway recently released their latest form 13F.

This document reveals every move he made last quarter and gives us an update on his entire portfolio.

I spent hours reviewing it, and found 10 key takeaways for us to review. 👇

1. 📈 Buys and Sells

In the most recent quarter, Buffett added to 7 existing positions and opened no new ones.

He reduced the size of 6 positions, and sold out of 2 entirely.

2. 💰 Cash Position is STILL Growing

Investors were shocked when Buffett's cash position hit $150 billion just a couple of years ago.

His cash position now?

Estimated to be around $350 billion.

3. 📉 Outperformance is Dwindling

Warren Buffett’s track record of outperforming the market is simply astounding.

However, that outperformance has begun to dwindle in the last few decades.

Why is this?

Berkshire Hathaway now owns over $1 trillion in assets.

Buffett has stated that they now have so much capital, it is now difficult to properly allocate all of it.

4. 🔻 Buffett is a Net Seller of Stocks (Again)

After spending a lifetime as a net buyer of stocks—

Warren Buffett's last 11 quarters have found him being a net seller of stocks.

While the official amount isn't out yet, here is my rough math:

🔴 Total Sells ≈ $3.5B–$3.7B

🟢 Total Buys ≈ $2.1B–$2.3B

Net selling of around $1.4B (estimated, since the exact buy/sell prices aren't official)

5. 🏦 Selling Out of Financials

Buffett reduced his position in multiple financial stocks:

• Capital One Financial - 4.03% reduction

• Bank of America - 7.15% reduction

• Citigroup - Completely Sold

• Nu Holdings - Completely Sold

The financial sector sell-off was significant, but financials are still the largest holding of Buffett.

6. 🤹‍♂️ Di-Worsification?

Buffett has 36 holdings in his portfolio.

But the top 10 holdings make up 89.03% of his portfolio.

Here are the top 10 holdings and allocation:

1. 🍎 Apple Inc. (AAPL) – 25.76%

2. 💳 American Express (AXP) – 15.77%

3. 🥤 Coca Cola Co. (KO) – 11.07%

4. 🏦 Bank of America Corp. (BAC) – 10.19%

5. 🛢️ Chevron Corp. (CVX) – 7.67%

6. ⛽ Occidental Petroleum (OXY) – 5.06%

7. 📊 Moody's Corp. (MCO) – 4.44%

8. 🧀 Kraft Heinz Co. (KHC) – 3.83%

9. 🛡️ Chubb Limited (CB) – 3.16%

10. 🏥 DaVita HealthCare Partners (DVA) – 2.08%

It is important to note that Buffett has stated that he has so much capital, it is becoming increasingly difficult to know how to allocate it all.

7. 🍏 Done Selling Apple For Good?

After four straight quarters of trimming his AAPL stake, Buffett held steady for the second quarter in a row.

• Q4 2023: Reduced AAPL -1.09%

• Q1 2024: Reduced AAPL -12.83%

• Q2 2024: Reduced AAPL -49.33%

• Q4 2024: Reduced AAPL -25%

Buffett had previously claimed that these sells were for 'tax purposes'.

8. 🍷 Doubling Down on Constellation Brands

Buffett added STZ (Constellation Brands) for the first time 2 quarters ago.

This past quarter, he increased his position by 113.52%, making it his largest purchase of the quarter.

• STZ Forward PE Ratio: 14.70

• STZ 5 YR Average PE Ratio: 20.52

STZ is trading 28% below its historic multiple.

Note: Buffett has also now bought DPZ and POOL for 3 consecutive quarters in a row.

9. 💵 Buffett Still Likes His Dividend Stocks

9 out of 10 of Buffett's top holdings pay a dividend.

Here is the current yield for each:

• 🍎 Apple Inc. (AAPL) – Dividend Yield: 0.49%

• 💳 American Express (AXP) – Dividend Yield: 1.09%

• 🏦 Bank of America Corp. (BAC) – Dividend Yield: 2.32%

• 🥤 Coca Cola Co. (KO) – Dividend Yield: 2.95%

• 🛢️ Chevron Corp. (CVX) – Dividend Yield: 4.83%

• ⛽ Occidental Petroleum (OXY) – Dividend Yield: 2.19%

• 📊 Moody's Corp. (MCO) – Dividend Yield: 0.78%

• 🧀 Kraft Heinz Co. (KHC) – Dividend Yield: 5.89%

• 🛡️ Chubb Limited (CB) – Dividend Yield: 1.29%

• 🏥 DaVita HealthCare Partners (DVA) – Dividend Yield: N/A

10. ⏳ Buy and Hold Forever (Or Not)

Despite Warren Buffett’s reputation as a long-term investor, over 60% of Berkshire's stock positions have been held for one year or less—

And only a small fraction are held for a decade or more.

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Check out these resources:

Tickerdata 🚀 (My automated spreadsheets and instant stock data for Google Sheets!)

Interactive Brokers 💰 (My favorite place to buy and sell stocks all around the world!)

Seeking Alpha 🔥 (My favorite investment research platform!)

The Dividend Report 📊 (Free Newsletter for Straightforward Dividend Stock News)

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That’s all for now!

See you next week!

Dividendology 🚀