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Investing.com – Hundreds of articles, clips, and economic books revolve around analyzing the style of the old American billionaire, Warren Buffett, who has remained at the top of the pyramid of the world’s rich for long periods and has not left the list of the richest in the world since he appeared in it.
In these lines, we will give you a glimpse of Warren Buffett’s successful investments, according to the latest financial release of his main company.
Warren Bavin is 92 years old, and he wrote to his clients in a letter that came with the publication of the quarterly business for the last quarter of 2022, which carried negative results for the company, whose profits declined by 54% compared to the year 2021. However, Buffett said in his letter: “Berkshire now enjoys significant ownership in a group Unparalleled large and diversified companies.
Buffett noted that last year there were 128 companies in the S&P 500 SPX that made more than $3 billion in profits and Berkshire was the largest shareholder in eight of those companies: Bank of America (NYSE:) BAC and American Express AXP. Berkshire is also the controlling owner of Chevron CVX and Occidental Petroleum OXY.
Moreover, Buffett owns the largest stake in Coca-Cola KO, HP, Moody’s and Paramount Global. Coca-Cola and American Express may be among the highlights of Buffett’s long investing career. Where he spent $1.3 billion on each share some 30 years ago, Berkshire’s holdings are now worth $25 billion and $22 billion, respectively.
“The lesson for investors: Weeds wither as flowers bloom and over time, it only takes a few winners to work wonders,” Buffett wrote. And yes, it pays to start early and live into your 90s, too.
Buffett also pointed to buybacks in AmEx and Apple AAPL, Berkshire’s biggest hub, at the end of last year – which increased the company’s ownership in each name.
Buffett writes, “The math is not complicated: when the number of shares goes down, interest in our many businesses increases, every little bit helps if the buybacks are done at cumulative prices.”
In a shareholder letter from Buffett, released alongside the earnings on Saturday, the CEO also made clear his desire for the holding company to maintain a highly diversified portfolio representing a massive empire even under eventual new leadership.
Greg Appel, the current CEO of Berkshire Hathaway, is expected to succeed Buffett as CEO.
In addition to these eight, Berkshire owns shares in BNSF and 92% of BH Energy, with businesses in solar energy, power generation and more. BNSF and BH Energy each have more than $3 billion in profits. Buffett noted that if these two companies were publicly traded, they would be large enough to replace two existing members of the S&P 500 SPX.
Buffett also said: “Berkshire will always hold a large load of cash and US Treasuries alongside a wide range of companies. We will also avoid behavior that could result in uncomfortable cash needs at inconvenient times, including financial panics and unprecedented insurance losses.” “.
