Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

The 5 Greatest Investments of Warren Buffett

By MyWallSt Staff - Sep 30, 2019 at 1:53PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are many investors who consider the Oracle of Omaha to be the greatest investor of all time, so let's look at five of his smartest choices.

This article was first published by MyWallStWhich 2 pot stocks will beat the market? Find out in MyWallSt's free guide!

Berkshire Hathaway ( BRK.A 1.18% ) ( BRK.B 1.49% ) is one of the most closely studied and followed stock portfolios on the planet and has thrived under the leadership of founder and stock market guru Warren Buffett.

Warren Buffett smiling.

Image source: The Motley Fool.

Here at MyWallSt, we have built our investment strategy around the ideology of Buffett himself: buy and hold 'til we're grey and old! This is the basic tenet of Buffett's strategy: He believes in investing in companies with long-term value rather than a "flash in the pan." We take a look at arguably the five best additions to the Buffett portfolio.

1. Apple

Berkshire Hathaway currently owns roughly 5% of the second-richest company on Earth, Apple ( AAPL -0.61% ). It also happens to be Berkshire's top holding by quite a large margin, coming in at close to a $50 billion market value. Buffett first began buying up shares in Steve Jobs' brainchild in 2016 and has bought more shares every quarter since, with gains coming in at around 25% since its first purchase. Despite Apple's declining hardware sales, Buffett firmly believes in the company's "stickiness," or the ability to remain relevant in everyday consumer life for years to come.

2. Bank of America

Much of Berkshire's enormous 9.3% stake in Bank of America ( BAC 2.40% ) came about following the Great Recession of 2008. The investment mogul invested $5 billion into the struggling bank, purchasing the shares at a much-reduced price of $7.14 per share, well below the trading price at the time of $26.99 per share. With the bank growing back to its pre-recession heights, Buffett has seen the market value of his position in BofA grow to $26.7 billion, making it an extremely successful investment.

3. Wells Fargo

It's safe to say that Wells Fargo ( WFC 3.60% ) hasn't been short of scandals in recent years, which has contributed to it being one of the worst-performing banks in the sector. However, through all of this, Warren Buffett has publicly backed his investment and its managers. Wells Fargo is one of Buffett's oldest banking investments, which he bought in 1989 worth $3 per share. With CEO Tim Sloan resigning earlier this year, and its stock price seemingly beginning to become steady after a fluctuating year, the company looks to be on the path to recovery. Despite all this, it's still one of Buffett's top stocks, and he has actually had to sell shares to meet regulatory demands of remaining below 10% ownership, with the market value of his position coming in at close to $20 billion.

4. Coca-Cola

Another golden oldie for Warren Buffet -- he purchased his first Coca-Cola ( KO 1.47% ) stock back in 1988 at a time of struggle -- that appears to still hold his seal of approval despite the changing landscape and growing health-consciousness of the average consumer. Buffett originally paid $1.3 billion for shares of the company, which translates to a current market value of roughly $18 billion, an increase of almost 1,300%. The investment pays Berkshire a massive $650 million per year and has seen increases in annual dividends almost annually for the past 50 years. It pays to own 9.5% of the world's most recognizable beverage maker. Fun fact: Buffett is actually a massive fan of the drink itself, and claims to drink several cans a day.

5. Amazon

In a surprising move, Berkshire Hathaway recently bought a stake in e-commerce giant Amazon.com ( AMZN -0.18% ). One of Buffett's two lieutenants, Todd Combs or Ted Weschler, started a position in the first quarter of 2019, and then added shares in the second. Though not a typical Buffett stock, considering its high price and price-to-earnings ratio, the purchase was still a wise move, as Amazon does fit the Buffett model of compounding growth with a formidable moat. The dominant leader in e-commerce over the past 25 years, Amazon has grown into a massive empire including hardware, music, streaming, and more. Not only does its core delivery service control 50% of U.S. market share, but its subsidiaries such as Amazon Web Services are also dominating in their respective fields. It may be too early to call it a great Buffett investment, but it has all the signs of potentially being his greatest yet.

MyWallSt logo

Image source: MyWallSt.

One of these pot stocks is already +100% this year. What are you waiting for?

MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in Amazon, Apple, and Coca-Cola. Read the full disclosure policy here.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$163.76 (-0.61%) $-1.01
Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$44.89 (2.40%) $1.05
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$3,437.36 (-0.18%) $-6.36
The Coca-Cola Company Stock Quote
The Coca-Cola Company
KO
$53.07 (1.47%) $0.77
Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$48.91 (3.60%) $1.70
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.A
$420,566.00 (1.18%) $4,906.00
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$279.09 (1.49%) $4.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
634%
 
S&P 500 Returns
141%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/02/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.