Warren Buffett and his holding company Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) are giants. Berkshire Hathaway became a leading conglomerate because of Buffett's investing and its business-savvy ways. Buffett's track record could continue to improve due to the potential for several of his top stocks to outperform.
Stocks that Warren Buffett recently bought or added
In his latest letter to Berkshire shareholders, Buffett wrote that he and his investment team "find little that excites us" in the stock market. However, “little” isn't the same as “nothing at all.”
Berkshire actually bought three new stocks and added to its positions in five stocks in the third quarter of 2022. Two were oil stocks -- one of Buffett’s favorite sectors right now.
| STOCK | NUMBER OF SHARES OWNED | SHARE COUNT INCREASE OVER Q2 2022 | VALUE OF TOTAL STAKE |
|---|---|---|---|
| Jefferies Financial Group (NYSE:JEF) | 433,558 | New Position | $12.8 million |
| Louisiana-Pacific (NYSE:LPX) | 5,795,906 | New Position | $296.7 million |
| Taiwan Semiconductor Manufacturing (NYSE:TSM) | 60,060,880 | New Position | $4.8 billion |
| Celanese (NYSE:CE) | 9,710,183 | 6% | $985.2 million |
| Chevron (NYSE:CVX) | 165,359,318 | 2.1% | $23.8 billion |
| Occidental Petroleum (NYSE:OXY) | 194,351,650 | 22.6% | $11.9 billion |
| Paramount Global (NASDAQ:PARA) | 91,216,510 | 16.3% | $1.7 billion |
| RH (NYSE:RH) | 2,360,000 | 8.8% | $580.7 million |
Berkshire could add even more to its stake in Occidental Petroleum going forward. On Aug. 19, 2022, the giant conglomerate received approval from the Federal Energy Regulatory Commission to buy as much as 50% of Occidental.
Stocks that Warren Buffett recently sold
In the third quarter of 2022, Buffett trimmed Berkshire Hathaway's positions in several stocks:
| STOCK | NUMBER OF SHARES OWNED | SHARE COUNT DECREASE FROM Q2 2022 | VALUE OF TOTAL STAKE |
|---|---|---|---|
| Activision Blizzard (NASDAQ;ATVI) | 60,141,866 | (12.1%) | $4.5 billion |
| Bank of New York Mellon (NYSE:BK) | 44,708,988 | (14%) | $2.4 billion |
| General Motors (NYSE:GM) | 50,000,000 | (5.4%) | $1.6 billion |
| Kroger (NYSE:KR) | 50,268,823 | (4.1%) | $2.2 billion |
| U.S. Bancorp (NYSE:USB) | 44,708,988 | (62.7%) | $3.1 billion |
And, while Buffett's favorite holding time is typically "forever," he opted during the third quarter of 2022 to completely close Berkshire Hathaway's positions in real estate investment trust (REIT) Store Capital (NYSE:STOR).
Top stocks that Warren Buffett owns by size
Berkshire Hathaway owns positions in more than 40 stocks. Here are the holding company's top 10 stocks, ranked by the value of the holding:
| STOCK | NUMBER OF SHARES OWNED | VALUE OF STAKE |
|---|---|---|
| Apple (NASDAQ:AAPL) | 907,559,761 | $131.6 billion |
| Bank of America (NYSE:BAC) | 1,010,100,606 | $37.5 billion |
| Chevron (NYSE:CVX) | 165,359,318 | $29.9 billion |
| Coca-Cola (NYSE:KO) | 400,000,000 | $25.2 billion |
| American Express (NYSE:AXP) | 151,610,700 | $23.1 billion |
| Occidental Petroleum (NYSE:OXY) | 194,351,650 | $13.3 billion |
| Kraft Heinz (NASDAQ:KHC) | 325,634,818 | $12.7 billion |
| Moody's (NYSE:MCO) | 24,669,778 | $7.4 billion |
| Taiwan Semiconductor Manufacturing (NYSE:TSM) | 60,060,880 | $4.8 billion |
| Activision Blizzard (NASDAQ:ATVI) | 60,141,866 | $4.4 billion |
There's a glaring gap between the values of the No. 1 and No. 2 stocks in the Berkshire Hathaway portfolio. In the top spot, Apple is such a massive holding that Buffett has referred to the technology giant as Berkshire Hathaway's "third-largest business" after its wholly owned insurance and railroad businesses. Buffett has also described Apple as "probably the best business I know in the world."
As Berkshire Hathaway's second-largest position, Bank of America especially stands out because Buffett has reduced the positions of most of his bank stocks in recent quarters. The financial services leader continues to benefit from its investments in technology, including mobile apps.
Related investing topics
Should you follow Buffett's moves?
While it can certainly be interesting to keep track of what Buffett and other billionaire investors are buying and selling, it's never a smart idea to jump into a stock just because someone else does -- even if that someone else is the Oracle of Omaha.
Having said that, looking at Berkshire Hathaway's stock portfolio can give you plenty of stock ideas to investigate in determining what is suitable for your portfolio based on your own risk tolerance and investment objectives.
