There was a lot of discussion last week as Warren Buffett‘s investment company Berkshire Hathaway put out its 13F filing. Here, the company detailed what it bought, what it held, and what it sold.
One area where we saw a sale was in Apple (NASDAQ: AAPL) stock, and investors were in an uproar. Was Buffett getting out of Apple stock? And where should we invest now?
This is why today we’re going to look at the best options for those looking to invest in Warren Buffett stocks. And these three are at the top of the list.
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Apple
Buffett began investing in Apple stock back in 2016. Over time has bought the tech stock again and again. Since then, the company has become the largest holding in Berkshire Hathaway stock, making up over 40%!
So, why did Buffett sell off about 10 million shares for almost US$2 billion? In short, to make up for other losses in other companies. It was a good time to get some returns from Apple stock and take advantage of the losses. Buffett still loves the stock, stating, “Apple is probably the best business I know in the world.”
Buffett continues to love Apple stock for its strong brand, loyal customer base, consistent profitability, strong ecosystem and share buybacks. The company has now cemented a long-term position at the top of the leaderboard in tech stocks. And that could only expand as it finds new areas to invest in. Apple stock seems to know how to convince its loyal base that they need its products every day. And that looks likely to continue in the near and distant future.
Bank of America
Beyond Apple stock, Bank of America (NYSE: BAC) is another stock that Warren Buffett loves. While nowhere near Apple, Buffett holds about 8% of the shares, making it the largest shareholder. And why does he like it so much? It’s proven time and again that it can weather any bad storm.
Take the financial crisis of 2008. Bank of America stock emerged as one of the best banking franchises in the United States. Moreover, it still holds the potential for long-term growth in the banking industry — especially when improved market conditions return.
That’s why lately, Buffett has been increasing his positions in banks like Bank of America stock. They provide value for future growth, and that’s what Buffett likes to see. Plus, as the largest shareholder, he gets to influence some decisions! As he’s said in the past, “We believe Bank of America is very well-positioned for the future.”
Coca-Kola
Finally, there are very few consumer products out there that weather any economic downturn with ease. That includes The Coca-Cola Company (NYSE: KO), which Buffett has held since 1988. It now takes up 6% of the Berkshire Hathaway portfolio, and it doesn’t look like it will decrease any time soon.
Buffett loves the stock for its iconic brand and global reach. No matter where you are, you can grab a Coke. And no matter what you’re making, it’s something you’ll likely always be able to purchase. It continues to have a huge competitive advantage with a recession-resistant product.
Add in the fact that the company is a Dividend King, with over 50 years of dividend increases, and it’s hard to argue this as a Buffett favourite. KO stock will continue to provide strong passive income thanks to its strong business model. This is likely why he’s said in the past, “If you are looking for a long-term investment, this is one of the best because the world drinks a lot of soda.”
