Nearly $121 billion. That's how much Warren Buffett is worth at the time of this writing. The total is substantially more than it was 12 months ago thanks to Berkshire Hathaway's (BRK.A -0.76%) (BRK.B -0.69%) solid gains this year.
But Berkshire Hathaway's gains stemmed in large part from great performances from several of its equity holdings. These three stocks have made Buffett the most money in 2023.
1. Apple
Other stocks in Berkshire's portfolio have delivered greater returns than Apple (AAPL -0.35%) has this year. However, there's no doubt whatsoever that Apple ranks as Buffett's biggest moneymaker in 2023.
Nearly half of Berkshire's equity investments are in Apple stock (48.5%, to be precise). Shares of the tech giant have skyrocketed more than 50% this year. Apple is on track to generate an unrealized gain of more than $65 billion for Berkshire in 2023. As Berkshire's biggest shareholder, Buffet's net worth benefited tremendously as a result.
Improving investor sentiment no doubt played a key role in Apple's impressive year-to-date gains. The company also beat Wall Street earnings estimates in each of its quarterly updates in 2023.
2. American Express
Buffett has owned shares of American Express (AXP -0.62%) longer than nearly any other stock in Berkshire's portfolio. The financial services company remains one of Buffett's favorites. Berkshire's 20.8% stake in Amex makes it the conglomerate's third-largest holding.
Just a few months ago, American Express wouldn't have made our list. However, the stock has roared back since late October and is now up more than 20% year to date. That's enough to generate roughly $4.7 billion in gains for Berkshire this year.
What provided the much-needed recent catalyst for American Express stock? The company reported better-than-expected Q3 revenue and earnings on Oct. 20, 2023. Amex posted record results on both its top and bottom lines.
3. Moody's
Several of Berkshire's other top holdings have declined this year. However, the conglomerate's eighth-largest position, credit rating agency Moody's (MCO 0.25%), is a notable exception.
After a multi-month pullback, Moody's stock began a strong comeback in October. The company's shares have soared more than 40% year to date. This tremendous gain has made Berkshire in the ballpark of $3 billion in 2023.
Business is booming for Moody's. The company reported 15% year-over-year revenue growth in the third quarter with diluted earnings per share jumping 28%. CEO Rob Fauber said that this impressive growth demonstrated "the resiliency and relevance of our business and the increasing demand for our unparalleled research, data, and solutions."
Are they no-brainer buys for the new year?
Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? Not necessarily. The big winners of one year don't always carry their momentum into the next year.
Apple's valuation could be a limiting factor headed into 2024. The stock currently trades at 30 times expected earnings. Moody's is even more expensive with a forward price-to-earnings ratio of nearly 35. American Express, on the other hand, remains attractively valued with a forward earnings multiple of 14.
But with the economy appearing to be in healthy shape, all three of these stocks could perform well again next year. More importantly, they should all deliver solid long-term returns thanks to their strong underlying businesses.
I wouldn't go as far as saying that Apple, American Express, and Moody's are no-brainer buys for the new year. However, I do think they're no-brainer picks for long-term investors.
