What are Warren Buffett’s 5 unbeatable investments

Portfolio movements Warren Buffett They never go unnoticed and in the last few hours, strikingly, the legendary investor managed to expand his portfolio by up to 49% in one technological action.

The Berkshire Hathaway CEO avoided technology stocks for much of his career. He gave explanations and even regretted passing up opportunities like Microsoft and Alphabet, but they all amount to the same thing. Technology companies are generally outside their scope of specialization.

However, Buffett began redefining its circle of competence about a decade ago, when Berkshire acquired a substantial stake in IBM in 2011. Berkshire has since abandoned that position, but laid the groundwork for another: Manzana (AAPL 1.43%) As of September 30, Berkshire Hathaway had 49% of its $318 billion equity portfolio invested in this single tech stock.

Warren Buffett’s 5 investments

However, although one might think that the businessman made his millions by betting on risky companies that generated great profits, in reality Buffett always showed his taste for more conservative actions of large companies with solid current numbers and good future projections.

To illustrate this, just look at the top five holdings of Berkshire Hathaway, its own holding company: Manzana (NASDAQ: AAPL), Bank of America (NYSE:BAC), American Express (NYSE:AXP), Coca Cola (NYSE: KO) and Chevron (NYSE: CVX).

Investments: why Buffett chooses these stocks

When analyzing these five options, they all share three characteristics who make them one of Buffett’s favorites to invest your money.

Since Warren Buffett is, after all, an investor who has always followed the philosophy of “value investing”, for him they have always been crucial elements in the companies in which he invests. future profitability prospects.

Based on this, both Apple, Bank of America, American Express, Chevron and Coca-Cola had margins that were comfortably above 10% in the last 12 months, while it is possible to wait solid earnings reports of these in the future.

Although these margins can fluctuate, with some of these sectors riskier than others – such as oil and natural gas represented by Chevron – Under normal conditions these companies always tend to perform given that its underlying businesses are strong

In addition to good profit margins and solid future structures, Warren Buffett also analyzes other company issues to decide whether to invest in them or not: one of their favorites is the power of their brands.

In these 5 actions, brands like Apple and Coca-Cola They are among the strongest in the world, with consumers choosing them as favorites again and again. Meanwhile, American Express, Bank of America and Chevron (with their Texaco and Chevron gas stations in the United States) are also strong brands globally, although more specifically in the US.

Warren Buffett always showed his favoritism for companies that pay dividends to its shareholders, which guarantees recurring income that can be reinvested and generate more profit in the long term.

Additionally, all of these companies have increased their dividend payments in recent years, making them Buffett’s favorites despite possible fluctuations.