Invest Like Warren Buffett – The Shares He Owns In 2019

Do you want to invest like Warren Buffett? Who wouldn’t?

Known as the Sage of Omaha and one of the world’s best known and most successful investors, Warren Buffett still draws a big crowd.

During the latest Berkshire Hathaway Inc (NYSE: BRK.B) annual general meeting, approximately 40,000 people travelled to Omaha, Nebraska to listen to what Warren Buffett had to say.

Though not everyone is willing or able to buy a Berkshire Hathaway ‘A share’ at their current share price over US$300,000 (look up NYSE: BRK.A), many Australian investors will be keen to learn Warren Buffett’s investment strategy.

How To Invest Like Buffett

One way to invest like the Sage of Omaha is to buy into some of the companies owned by his holding company, Berkshire Hathaway.

Part of the investment strategy employed by Warren Buffett involves buying more than just a few shares in a company. He prefers a majority stake. He is also well known for choosing to buy into companies with products or services that are easy to understand.

In this article, we will look at some of the companies that Warren Buffett has invested in. Some of them are fully owned by Berkshire Hathaway and some are partially owned by the conglomerate. Inc (NASDAQ: AMZN). Warren Buffett said he did not personally buy Amazon shares, but one of the money managers at Berkshire Hathaway did. So, Berkshire’s investment in Amazon will show up in the next company filing. It will be interesting to see if Berkshire continues to accumulate Amazon shares.

Buffett is known to shy away from tech stocks saying that ‘they are outside my area of expertise’. However, he’s also been quoted praising Amazon founder Jeff Bezos for what he’s done in growing Amazon to be a global tech giant.

Apple Inc (NASDAQ: AAPL). Berkshire owns 249.5 million Apple shares, making it one of the biggest investments in the Berkshire portfolio, according to recent industry reports. Berkshire started buying Apple shares in 2017 and then added more in 2018. But it’s been reported that the conglomerate reduced its Apple holdings in late 2018.

However, Warren Buffet has always reiterated that Berkshire is a long-term investor and considers Apple as a value investment, like everything else in the Berkshire portfolio.

American Express  (NYSE: AXP), Mastercard (NYSE: MA) and Visa (NYSE: V). You read that right, Berkshire owns shares in each of the three major credit card companies, though American Express represents the biggest investment of the three. Latest financial reports show that Berkshire owns 151,610,700 American Express shares; 4,934,756 Mastercard shares and 10,562,460 Visa shares.

The Coca-Cola Company (NYSE: KO). Warren Buffett is an unabashed fan of Coca-Cola. He’s known to drink this sugary beverage on a regular basis. Coca-Cola Corp is one of the longest-running investments for Berkshire. Currently, Berkshire owns approximately 400,000,000 Coca-Cola shares.

Costco Wholesale (NASDAQ: COST) / Kraft Heinz. Knowing that food and food items will always be in demand, Berkshire has also invested in a number of food manufacturers and distribution companies including Costco and Kraft Heinz. Current holdings include 4,333,363 shares in Costco and 325,634,818 shares in Kraft Heinz.

Delta Air Lines (NYSE: DAL) / American Airlines Group (NASDAQ: AAL). Berkshire is invested in the airline and aviation industry through its holdings in American Airlines Group and Delta Air – two of the major brands in the US. Berkshire owns 43,700,000 American Airlines Group shares and 70,910,456 Delta Air shares.

Goldman Sachs (NYSE: GS) and JP Morgan (NYSE: JPM). It’s public knowledge that Goldman Sachs approached Warren Buffet when the global financial crisis hit in 2008, at a time when many finance sector companies came under tremendous pressure. Warren Buffett, known for his astute investment strategy and knowledge of corporate America, was there to help. Today, Berkshire continues to be invested in Goldman Sachs and other finance businesses such as JP Morgan, Bank of America and Bank of New York Mellon.

What Now?

These are only some of the major companies and brands that Berkshire Hathaway (and to a certain extent Warren Buffett on his personal capacity) has invested in and continues to invest in.

Some of these companies may fit into your portfolio while others may not. Either way, it may be worth considering whether some of these stocks can deliver improved returns to your portfolio just as they have delivered ongoing returns for the Sage of Omaha.

This article was written by Alex Douglas, Managing Director of Monex Securities Australia (AFSL: 363 972), part of the Monex Group Inc.


Alex Douglas

Alex Douglas

Alex Douglas is the Managing Director of Monex Securities Australia. He has held senior roles with numerous financial services companies both in Australia and Asia. Since first plotting currency price charts by hand in 1983, Alex has worked in a range of markets including foreign exchange, futures and equities. His passion for the markets has seen him take on a variety of roles in the industry including being a trader on the floor of the Sydney Futures Exchange, a senior executive with the MMS International division of Standard & Poor’s in Singapore and as a director in various FX and derivatives companies.