Warren Buffett stands as perhaps the greatest living investor of our time. The Berkshire Hathaway CEO boasts a net worth exceeding $100 billion and has created nearly $1 trillion in market value for shareholders.
Professional investors and fund managers worldwide closely monitor Warren Buffett’s stock purchases. In this guide, we’ll examine 6 of Buffett’s most successful all-time stock picks.
Who is Warren Buffett?
Warren Buffett serves as chairman and CEO of Berkshire Hathaway and ranks as the world’s sixth-wealthiest person. Dubbed the ‘Oracle of Omaha,’ he’s universally recognized as the most successful investor in history.
Now 92, Buffett launched his investing career in the 1960s. He acquired Berkshire Hathaway, originally a textile company, in 1965. His 1972 purchase of See’s Candies for $25 million has since generated over $2 billion in profits. Other major acquisitions through Berkshire Hathaway include insurance giant GEICO, railroad company BNSF, and Dairy Queen.
Beyond these acquisitions, Berkshire Hathaway maintains substantial stakes in numerous publicly traded companies. Investors frequently study the company’s portfolio for investment insights and guidance.
Warren Buffett’s Investment Style
Warren Buffett studied under Benjamin Graham, widely considered the father of value investing. Buffett follows a strategy of investing in exceptional companies at attractive prices, though he’s more willing to take calculated risks than his mentor Graham ever was.
Volumes have been written on Warren Buffett’s investment philosophy. Simplified, Buffett seeks companies with strong economic moats, intrinsic value exceeding share price, and excellent economies of scale. As a long-term investor, many top-performing stocks in the Berkshire Hathaway portfolio have remained there for decades.
Warren Buffett Stock Picks
Several of Warren Buffett’s most successful investments have been outright acquisitions. His 1995 purchase of GEICO for $4.7 billion now carries an estimated value of $40-$50 billion.
However, Buffett has also achieved remarkable success purchasing shares of public companies. Here are 6 of Buffett and Berkshire Hathaway’s most profitable stock investments.
Apple
Many analysts initially criticized Warren Buffett as late to the party when he first purchased Apple stock in 2016. By then, Apple hardly qualified as a value stock, and several years had passed since the iPhone and App Store revolutionized the smartphone market.
Buffett’s instincts proved correct. In 2016, Apple shares traded at an adjusted price of around $25. During 2021’s tech boom peak, Apple shares reached $165 per share—a 560% gain.
Buffett’s initial 2016 Apple investment secured 1.1% of the company’s shares. He continued purchasing Apple through 2019, at one point owning 5.7% of the company. At current prices, Buffett holds an unrealized gain exceeding 300% in Apple, with his total stake worth $126 billion.
Coca-Cola
Many analysts consider Coca-Cola the Oracle of Omaha’s single greatest all-time investment. Berkshire Hathaway acquired 400 million shares of Coca-Cola between 1988 and 1994 for a total cost of $1.3 billion.
That position initially represented a 7.2% ownership stake and generated $88 million in annual dividends for Berkshire Hathaway. Through Coca-Cola’s share buybacks and dividend increases, Berkshire Hathaway now holds a 9.4% ownership stake and earns $672 million annually from those same 400 million shares.
Coca-Cola’s share price has also multiplied 19-fold. Berkshire Hathaway’s original $1.3 billion investment now exceeds $24.2 billion in value.
Bank of America
Warren Buffett has twice seized opportunities to buy Bank of America during downturns. In 2011, while the bank still struggled with financial crisis aftermath, Buffett invested $5 billion. Then in 2020, amid COVID-19 market turmoil, Buffett added another $2.1 billion in Bank of America stock.
Bank of America stock reached new all-time highs in early 2022, pushing Buffett’s total stake value beyond $50 billion.
American Express
Warren Buffett first invested in American Express in 1963, before acquiring Berkshire Hathaway. He held positions intermittently from the 1960s through 1980s, then built a massive long-term stake between 1994-1998.
By 1998, Berkshire Hathaway owned 152 million American Express shares, and Buffett has never sold a single one. Today, Berkshire Hathaway’s position represents over 20% ownership in American Express.
Berkshire Hathaway’s American Express position cost approximately $1.3 billion to build. At current prices, it’s worth over $27 billion—a more than 20-fold gain before considering the stock’s generous dividend payments.
Moody’s
Warren Buffett invested in credit ratings company Moody’s in 2000 and has maintained approximately 25 million shares since. The stock increased six-fold by 2007 but suffered during the 2008 financial crisis. Even at the crisis’s depth, Buffett’s position remained worth double his initial investment.
Buffett’s characteristic patience paid dividends, as Moody’s now trades near $300 per share—representing a 2,500% gain from 2000 prices. Buffett’s Moody’s holdings are currently worth approximately $7 billion.
United Parcel Service
While never among Buffett’s largest investments, UPS remains in the Berkshire Hathaway portfolio and has delivered solid performance. Buffett initially invested $113 million in UPS during 2006 and has gradually reduced the position over time. UPS now comprises roughly 0.01% of the Berkshire Hathaway portfolio.
UPS currently trades above $180 per share, compared to Buffett’s $79 per share cost basis in 2006. This represents more than doubled value, plus UPS has consistently maintained a dividend yield exceeding 2.5% over the past decade.
Conclusion: Warren Buffett Stock Picks
Warren Buffett stands among history’s greatest investors. His value-driven investment strategy has generated hundreds of billions in profits for Berkshire Hathaway. The Berkshire Hathaway portfolio continues maintaining significant positions in Buffett’s favored companies, including Apple, Coca-Cola, Bank of America, and American Express.
