Warren Buffett's investment conglomerate, Berkshire Hathaway (NYSE:BRKa) (NYSE: BRK.A)(NYSE: BRK.B), has continued its long-standing tradition of high returns for investors, with a 20% annual compounded return since Buffett took over as CEO in 1965. The company's investment decisions have consistently drawn attention, given its impressive track record. As of today, approximately half of Berkshire's portfolio is made up of Apple shares (NASDAQ:AAPL), valued at nearly $178 billion.
The remaining half of the portfolio is composed of 47 different stocks, with five significant holdings making up 66% of this portion. The two largest holdings after Apple are Bank of America (NYSE: NYSE:BAC) and American Express (NYSE: NYSE:AXP), valued at $29.6 billion and $26.4 billion, respectively, at the end of the second quarter.
Bank of America, the second-largest bank in the U.S. with over $2.4 trillion in total assets, has shown resilience amidst industry challenges, growing revenue and income by double digits and increasing the number of checking accounts for the 18th consecutive quarter.
American Express, operating the third-largest credit card network globally, is valued by Buffett due to its premium customer base and strong brand associated with luxury. "You can't create another American Express...I can't put in the minds of people what is in their minds about American Express," Buffett said in an interview with Bloomberg.
Coca-Cola (NYSE: NYSE:KO), a long-time Berkshire holding valued at $24 billion, is another key investment. Coca-Cola's iconic brand ranked seventh globally in Interbrands' 2022 rankings, making it the highest food or beverage name on the list. The company has also been a reliable income stock, raising its dividend payout annually for 62 consecutive years.
In recent years, Berkshire has also significantly increased its investments in the energy sector. Chevron (NYSE: NYSE:CVX) is currently Berkshire's fifth-largest position, valued at $19.3 billion. Chevron operates a balanced business in oil and gas, making it less vulnerable to oil price fluctuations and a good source of cash flow and dividends.
Another notable energy investment is Occidental Petroleum (NYSE: NYSE:OXY). Since providing special financing to Occidental for its purchase of Anadarko in 2019, Berkshire has continued to add shares, now owning a 24% stake in the company, valued at $13.2 billion. Occidental has used its profits from higher oil prices to pay down debt and invest in green energy, anticipating a potential market worth $3 trillion to $5 trillion.
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