Top 3 Stocks Warren Buffett Is Buying in the US Markets
In the first quarter of 2024, Warren Buffett’s Berkshire Hathaway made significant adjustments to its portfolio. This included a notable reduction in stakes in Apple [AAPL] and Paramount Global [PARA] for the second consecutive quarter. Despite this downsizing, Apple remains Berkshire’s largest holding. As Buffett’s investment decisions always garner significant attention, investors are particularly interested in what new opportunities Berkshire is capitalizing on. Here, we explore the top three stocks that Warren Buffett is buying.
Coca-Cola [KO]
Coca-Cola is one of Warren Buffett’s longest-held investments. Berkshire Hathaway has owned shares in Coca-Cola since 1988. It currently holds about 400 million shares worth around $23 billion. The firm’s stock price has risen by 31.2% over the past five years. Analysts forecast an additional 7% increase over the next year, with 15 out of 27 analysts rating it as a Strong Buy.
Coca-Cola has increased its dividend for 63 consecutive years, offering a current yield of 3.07%. This long-term commitment to returning capital to shareholders highlights the firm’s financial stability.
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Chevron [CVX]
Chevron has become a major holding for Berkshire Hathaway, particularly as Warren Buffett has increased his investments in the energy sector. Since initiating a position in Chevron at the end of 2020, Berkshire’s stake has grown to around $20 billion, making up 8.3% of its equity portfolio. Morningstar attributed a narrow economic moat to Chevron, expecting the firm to generate excess returns on invested capital over the next decade through improved cost structures and higher return production volumes.
Citigroup [C]
Citigroup is another high-dividend stock that has attracted Warren Buffett’s interest. Although several analysts do not assign Citigroup an economic moat, the bank’s ongoing strategic repositions show promising signs of improvement. Buffett’s investment in Citigroup highlights his willingness to support firms undergoing significant transformations with the potential for substantial improvement.
As Warren Buffett navigates the evolving market landscape, these investments highlight the firm’s enduring principles of seeking value and stability.
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