The Oracle of Omaha’s Investment Strategies: Examining Warren Buffett’s Holdings in Apple and Taiwan Semiconductor
Warren Buffett is undoubtedly one of the most successful investors of all time, with a net worth of over $100 billion. He currently ranks fifth on the Bloomberg Billionaires Index and is the CEO and chairman of Berkshire Hathaway (BRK.A 0.02%) (BRK.B 0.02%). Since 1965, Buffett’s Berkshire Hathaway (BRKA) has achieved compound annual returns of roughly 20% per year, which is double that of the most common benchmark, the S&P 500 Index.
Warren Buffett has built Berkshire Hathaway into the largest investment holding company in the world and investors track his portfolio by monitoring the Forms 13F Berkshire Hathaway (BRK.A 0.02%) (BRK.B 0.02%) files with the Securities and Exchange Commission. However, Buffett's “secret portfolio” is not included in these quarterly filings, as Berkshire subsidiary New England Asset Management (NEAM) owns quite a few stocks that aren't included.
The Oracle of Omaha has been a billionaire for many years, but his wealth has nearly doubled over the past two years. This is likely due to the market rewarding him for his conservative stock picking, as last year's inflationary wave combined with the Federal Reserve's interest rate hike spree decimated risky stocks that the billionaire avoids.
Apple (AAPL -0.76%) is Buffett’s largest single holding, accounting for roughly 38.9% of Berkshire’s equity investments. Berkshire began investing in the tech giant in 2016 and has since seen capital appreciation for existing shares, as well as additional stock purchases, elevating it to the top position.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is another stock that Buffett has been paying attention to. The Oracle of Omaha reduced his investment in the firm by a massive 87% in the fourth quarter of 2022. This rapid turnaround has spooked investors and the stock prices of the world's largest chip manufacturer declined by up to 4% in Taipei, contributing to widespread losses in the market.
Buffett’s long-term view that stocks can be a wealth-creation machine has been proven accurate over the past decades, and his actions suggest that trouble may be brewing on Wall Street. To determine which Warren Buffett stocks to add to or divest of in a given quarter, many investors pay close attention to his decisions.
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1. “This Ridiculously Cheap Warren Buffett Stock Could Make You Richer” The Motley Fool, 12 Feb. 2023, https://www.fool.com/investing/2023/02/12/this-ridiculously-cheap-warren-buffett-stock-fnd
2. “13F: 3 of Buffett's Latest Moves” Nasdaq, 15 Feb. 2023, https://www.nasdaq.com/articles/13f:-3-of-buffetts-latest-moves
3. “3 Top Dividend Stocks in Warren Buffett's Secret Portfolio — and How Much Income You Could Make From Them” The Motley Fool, 12 Feb. 2023, https://www.fool.com/investing/2023/02/12/3-top-dividend-stocks-in-warren-buffetts-secret-po/
4. “10 Best Performing Warren Buffett Stocks in 2023” Yahoo! Voices, 19 Feb. 2023, https://www.yahoo.com/now/10-best-performing-warren-buffett-143853972.html
5. “76% of Warren Buffett's Berkshire Hathaway Portfolio Value Is in These 5 Stocks” The Motley Fool, 19 Feb. 2023, https://www.fool.com/investing/2023/02/19/warren-buffett-berkshire-hathaway-portfolio-stocks/
6. “10 Best Long-Term Stocks To Buy According To Warren Buffett” Yahoo! Voices, 16 Feb. 2023, https://www.yahoo.com/now/10-best-long-term-stocks-122309034.html
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