Things will probably feel different for Warren Buffett in 2024. It's the first year in decades that he won't have his longtime business partner Charlie Munger to call as a sounding board. Munger died in November at age 99.
But in other respects, the new year will likely be similar for Buffett to years past. For example, as has been the case for quite a while, Berkshire Hathaway (BRK.A +0.21%) (BRK.B +0.21%) has especially large stakes in only a handful of holdings. Nearly 80% of Berkshire's portfolio is invested in six stocks as 2024 begins.
1. Apple
It shouldn't be surprising that Apple (AAPL 1.10%) remains Buffett's top stock by far. The tech giant makes up 47% of Berkshire's total portfolio, with a valuation of around $170 billion.
NASDAQ: AAPL
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Apple was a huge winner for Buffett in 2023, soaring 48%. However, the stock got off to a rocky start in the new year after Barclays downgraded it to underweight. Buffett probably won't pay any attention at all to Wall Street's views, though. He continues to view Apple as one of the best businesses in the world.
2. Bank of America
Buffett's enamor with bank stocks has waned somewhat in recent years, but not with Bank of America (BAC 1.49%). It's his No. 2 stock, making up 9.6% of Berkshire's portfolio, with the position valued at roughly $34.7 billion.
Bank of America eked out a small gain in 2023 after getting clobbered earlier in the year by the banking crisis. The big bank remains strong financially, though. It also continues to be a top innovator in the financial services sector. Don't expect BofA to give up its spot as Buffett's second-favorite stock in 2024.
3. American Express
Buffett has owned shares of American Express (AXP 0.95%) longer than every other stock except one. It's also his third-largest holding, comprising 7.8% of Berkshire's portfolio.
NYSE: AXP
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Wall Street isn't especially bullish about American Express in the new year. Only 10 of the 28 analysts surveyed by LSEG in January rated the stock as a buy or a strong buy. I doubt that Buffett will add to Berkshire's position anytime soon, but I don't expect him to sell Amex, either.
4. The Coca-Cola Company
What's the one stock that Buffett has owned longer than American Express? The Coca-Cola Company (KO 0.16%). He initiated a position in Coca-Cola in 1988. It's now Berkshire's fourth-biggest holding, making up 6.6% of the portfolio.
Coca-Cola wasn't a winner for Buffett in 2023. However, it's made him a lot of money through the years. The stock will continue to do so in 2024 even if its share price doesn't go anywhere thanks to its dividend. Coca-Cola paid Berkshire a whopping $184 million in dividends in December.
5. Chevron
Buffett trimmed Berkshire's position in Chevron (CVX +1.66%) last year. However, the big oil and gas stock still made up 4.6% of Berkshire's portfolio, putting it in the No. 5 spot overall.
Chevron's shares fell nearly 17% in 2023. However, that sell-off (largely on the news of the company's plan to acquire Hess) appears to be overdone. If oil prices hold up, Buffett could see positive returns from Chevron in the new year.
6. Occidental Petroleum
Occidental Petroleum (OXY +1.86%) is one oil stock that Buffett continued to buy in 2023. It now ranks as Berkshire's sixth-largest position, making up 4.1% of the conglomerate's total portfolio.
NYSE: OXY
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Don't be surprised if Buffett scoops up even more Occidental shares in 2024. Berkshire has regulatory approval to acquire up to 50% of the company, but its stake currently totals only 27.8%.
Most likely to succeed in the new year?
I think that American Express and Occidental Petroleum are the two stocks among Berkshire's top holdings that are the most likely to succeed in the new year. Both stocks are attractively valued. Both should also benefit if the U.S. economy performs relatively well in 2024, as many economists predict.
If I had to pick just one of these stocks, though, I'd go with Occidental. My view is that Berkshire will indeed expand its stake in the company this year, helping push shares higher.
