From what we know, despite the tech company piercing $2 trillion in market valuation, it is still Buffett’s long-term bet, accounting for 38% of Berkshire Hathaway’s portfolio.
Warren Buffett’s second largest stock holding is Bank of America (BofA), representing 10.4% of the total portfolio of Berkshire Hathaway. This choice is not accidental: banking entities are the ones that benefit the most from the current scenario of high interest rates. By increasing the price at which they trust their customers with money, the difference between this amount and what it costs the banks to borrow it also increases, and that is what they keep. So much so, that BofA raised its quarterly dividend again last July by another 5% -to 0.22 dollars per share- after the 17% rise undertaken a year earlier. For the moment, the firm offers an annual return of 2.7%.
Historically, the oil industry has been one of the best performers in periods of high inflation. In the case of Chevronthat translated into profits of 11.2 billion dollars in the third quarter of the year, 84% more than in the same period of 2021. On the other hand, the price of its shares has gone from $119.26 to $174.70 in a year and its market capitalization is already around 337,810 million dollars. In addition, its annual dividend yield is at 3.3% after the company’s management decided to approve a 6% increase in January, up to $1.42 per title, according to a publication Money Wise and collect Yahoo! Finance. Given that the situation is not likely to change in the near future, Buffett is going to continue betting on this value, whose weight in the Berkshire Hathaway portfolio amounts to 9.1%.
Source: Ambito
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