Warren Buffett, the Oracle of Omaha and perhaps the best-known and least-disliked billionaire investor, is famous for his seemingly clairvoyant and immensely lucrative stock picks.
At a glance, the billionaire’s portfolio results for 2023 – given that they were altogether mixed – might give the impression that at 93, he lost some of his spark, but it is important to remember that he was always playing the long game and that last year – marked by recessionary fears – was mixed across the board.
This year, Finbold decided to look at the portfolio of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) and see which of its top stocks holds the greatest potential to make any investor very wealthy indeed.
Picks for you
While Apple (NASDAQ: AAPL) might, at a glance, appear like the logical choice as a well-established stock market winner and the holder of a decisive plurality in the Buffett portfolio, the fifth holding by size might, in fact, be the most promising.
Chevron (NYSE: CVX)
Last year, the fossil fuel giant Chevron (NYSE: CVX) offered a decisively mixed performance and, while experiencing rallies and downturns, ended the year 13% in the red.
The company is also, so far, failing to impress in 2024, having again experienced several rises and falls, landing $147.43 per share at press time – and being 1.37% in the red since January 1.
Despite this, the company is relatively well-positioned for success in 2024 and beyond. Chevron has a global network of operations that is active in the U.S. itself in the Permian Basin as well as in places such as Central Asia.
Additionally, being a part of a highly strategic industry, Chevron has the potential to benefit both from diffusing the current geopolitical tension and from escalating – as it could lead to either the price of its primary commodity surging or the costs of its operations going down.
Despite being one of the biggest names in the fossil fuel industry, Chevron is also doing its part to future-proof by expanding into renewable energy with a renewable diesel plant in Geismar, Louisiana, and a carbon-capture facility in Mendota, California.
Wall Street experts forecast major upside for CVX stock
Finally, Wall Street experts are also mostly bullish when it comes to the company, as 9 out of the 14 analyzed by TipRanks rate it as a buy. The remaining five advise investors to hold the stock for the time being, and none believe selling is the right call.
Chevron also boasts a respectable average 12-month price target of $176.86 – a 19.96% upside from the press time price of $147.43. Some analysts also see the possibility of the company’s stock going as high as $200.
It is also noteworthy that even the low target of $148 represents an upside compared to the market’s close on Tuesday, January 31 – the last trading day at the time of publication.
Chevron is also an appealing investment as it offers a significant annual dividend yield of 4.10% – meaning that investors can get an additional $1.51 for each share they own every quarter or $6.04 each year.
Buffett’s other promising holdings
While each of Buffett’s picks is interesting in its own right, several alongside Chevron stand out. The technology giant Apple is certainly one of the favorites of many investors, being both an established blue-chip company and offering significant returns thanks to its focus on retaining the innovative bleeding edge.
Additionally, while already boasting a sky-high valuation, analysts have predicted a coming surge of approximately 20% as recently as January 26.
The Chinese electric vehicle (EV) company BYD, is another highly interesting pick for any savvy investors.
The company found its way into Buffett’s portfolio late in 2023 and is not only arguably Tesla’s (NASDAQ: TSLA) biggest rival but also well-positioned to take advantage of the electric and hybrid vehicle booms – the latter becoming increasingly popular in 2023.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
