Warren Buffett is one of the most famous investors in the world — and has been for decades. His reputation is well-deserved — the ‘Oracle of Omaha’ has managed to outperform the markets in the long run — which is a rare feat indeed.
The crux of his philosophy is simple — buy equity in high-quality businesses that have solid management, if possible, an economic moat or a pronounced competitive advantage — and, most importantly, attractive valuations.
It’s precisely this methodology that has taken his company, Berkshire Hathaway (NYSE: BRK.A) from a declining textile manufacturer to one of the world’s largest conglomerates, boasting a market capitalization of approximately $1 trillion — give or take a little, depending on Berkshire stock price fluctuations.
Picks for you
It’s no wonder that the billionaire and noted philanthropist’s approach to investing has caught on. Buffett’s preferred holding period is forever — however, let’s zoom in a bit, and take a look at how his top five holdings have performed throughout the course of 2024.
Apple (NASDAQ: AAPL)
Tech titan Apple (NASDAQ: AAPL) has seen year-to-date (YTD) returns of 39.09%. While the first two quarters of the year saw relatively disappointing performance from the iPhone maker, the second half of the year saw a steady climb up to the current Apple stock price of $258.20.
Apple saw strong iPhone demand during the year, an expanding stock buyback program, as well as a (relatively) late entry into the AI market with Apple Intelligence. While most analysts are bullish on AAPL stock, Buffett has offloaded roughly $100 billion worth of the company’s shares — suggesting that its valuation no longer meets his criteria.
American Express (NYSE: AXP)
Since the beginning of the year, American Express (NYSE: AXP) stock has marked 61.15% returns — unlike AAPL, the financial services company has been on a continuous upward trend. Despite a challenging economic environment, American Express stock has thrived — marking 10 consecutive quarters of record revenues.
At press time, a single AXP share was trading at $303.46 — and while that represents the stock’s all-time high (ATH), a trailing price-to-earnings (PE) ratio of 21.97 and a forward PE of 19 suggest that it is slightly undervalued relative to the wider market.
Bank of America (NYSE: BAC)
At the beginning of January, a single Bank of America (NYSE: BAC) share was trading at $33.90 — by press time, prices had reached $44.38, equating to a 30.91% surge.
The company posted earnings beats in four consecutive quarters and stands to benefit greatly from Donald Trump’s deregulation-friendly approach to finance — but Buffett has been on a BAC share selling spree in 2024, suggesting that he either sees headwinds in the cards for the company, or is skeptical about the wider banking sector’s outlook in 2025.
Coca-Cola (NYSE: KO)
While Coca-Cola (NYSE: KO) stock saw a modest 5.05% gain in 2024, the company meets almost all of Buffett’s criteria — it enjoys an economic moat as the most popular drink in the world, has a long and stable operational history, and trades at an attractive valuation.
While investors might be deterred by the meager returns seen in 2025, Coca Cola stock is quite oversold at the time of writing — providing investors with a long time horizon with an appealing entry point for a buy-and-hold play
Chevron (NYSE: CVX)
Energy giant Chevron (NYSE: CVX) is the second-largest oil company in the United States in terms of revenue. Since the beginning of the year, the price of Chevron stock has dropped by 3.77% — but there are causes for optimism.
The oil giant has reached record levels of production in Q3 2024, and has announced plans to significantly slash capital expenditures in the coming years. In addition, Chevron has both long-term deals and crucial asset swaps that will allow it to focus more instantly on its core liquid natural gas (LNG) operations in 2025.
Conclusion
While the results from Buffett’s largest holdings were quite mixed in 2024, readers should note two crucial facts.
As a value investor, Buffett is not necessarily in the business of finding outsized, short-term returns — and as he has been a net seller of stocks over the course of the year, and sits on a record-breaking cash pile, it’s likely that he is anticipating a wider market correction in the relatively near future.
While even investors of his renown get it wrong on occasion, for those with a long time horizon, following Buffett’s moves has generally been a winning strategy.
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