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. Because Buffett's investment decisions always attract a lot of attention, investors are especially interested in the new opportunities that 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 owns about 400 million shares worth about $23 billion. The company's share price has risen 31.2% over the past five years. Analysts predict an additional 7% upside in the coming year, with 15 out of 27 analysts rating it a strong buy.
Coca-Cola has increased its dividend for 63 years in a row and offers a current yield of 3.07%. This long-term commitment to returning capital to shareholders emphasizes the company's financial stability.
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Chevron [CVX]
Chevron has become an important holding for Berkshire Hathaway, especially as Warren Buffett has increased his investments in the energy sector. Since initiating a position in Chevron in late 2020, Berkshire's stake has grown to approximately $20 billion, accounting for 8.3% of the stock portfolio. Morning star attributed a narrow economic moat relative to Chevron, with the expectation that the company will generate excessive returns on invested capital over the next decade through improved cost structures and higher return production volumes.
Citi Group [C]
Citigroup is another high-dividend stock that has caught the interest of Warren Buffett. While several analysts don't credit Citigroup with an economic moat, the bank's ongoing strategic repositionings are showing promising signs of improvement. Buffett's investment in Citigroup highlights his willingness to support companies undergoing significant transformations with the potential for substantial improvement.
As Warren Buffett navigates the evolving market landscape, these investments highlight the company's enduring principles of seeking value and stability.
Also read: How to Create Your First $1 Million Warren Buffett Style