Warren Buffett Stocks

Warren Buffett Stocks. Just what stocks does Warren Buffett own? Observing their characteristics can shed insight into what it takes to invest like Warren Buffett.

Investment Philosophy

Under the influence of good friend Charlie Munger, Buffett gradually developed his own approach to investment. The Warren Buffett stock holdings focuse on high quality businesses with a wide ‘moat’ – barriers to entry that distanced any possible competition. Perhaps the best example of a company with a wide moat is Coca-Cola, as the beverage commands a much higher value than similar-tasting beverages with no brand name.

This ‘wide moat’ investment strategy has become Berkshire’s defining investment style. Consequently, most of the companies owned by the holdings company are also dominant players in their respective industries. They monopolize particular niche markets and face almost no direct competition.

The other characteristic of Buffett’s investment approach is that he does not believe in wide diversification. According to him, “Wide diversification is only required when investors do not understand what they are doing”.

Warren Buffett Portfolio

The companies that Warren Buffett span a wide variety of industries. Buffett tries to stay within his circle of competence, but even within that space there is a large spectrum of compoanies that he can potentially invest in. However, there are some pre-dominant areas that Buffett invests most heavily in. These include:

  1. Insurance: Geico, General Re
  2. Utilities: MidAmerican Energy
  3. Jewelry: Borsheim’s
  4. Food: Dairy Farm, See’s Candies, Coca-Cola
  5. Financials: Wells Fargo

Warren Buffett Stock Holdings

What stocks has Warren Buffett bought into? The Warren Buffett stock portfolio includes many small changes from time-to-time, but here is a sampling of some of the evergreen names in his portfolio:

  • Coca-Cola Co
  • Wells Fargo & Co
  • American Express Inc
  • Procter Gamble
  • Burlington N Sante Fe
  • Kraft Foods Inc
  • Johnson and Johns
  • Wesco Financial Co
  • US Bank Corp

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