(The Yorkshire Analysis) — Warren Buffett’s significant stake in Apple Inc. ($AAPL) has been a cornerstone of Berkshire Hathaway’s investment strategy.

However, recent challenges faced by Apple have prompted Buffett to turn to a more diversified approach.

This analysis delves into the eight U.S.-listed stocks in Berkshire’s portfolio that have shown resilience since the S&P 500 peaked in July, mitigating the impact of Apple’s decline.

Berkshire Hathaway’s Holdings

While a concentrated portfolio can yield great returns in bullish markets, recent trends indicate that since July, Buffett’s picks have faced headwinds.

Approximately 84% of Berkshire Hathaway’s 49 U.S.-listed stocks have experienced declines since July 31, with the average stock down over 11%, putting them in a correction phase.

Notably, 33 of Buffett’s holdings, or roughly two-thirds, have faced steeper declines compared to the S&P 500.

Apple’s Setback

Apple, constituting 55% of Berkshire Hathaway’s U.S.-listed stock portfolio, has experienced an 8% decline since July, resulting in a staggering $14.4 billion decrease in Berkshire Hathaway’s position in just two-and-a-half months.

Although Apple’s stock is still up nearly 39% for the year, the recent performance has raised concerns, particularly given the company’s vulnerability to rising Treasury yields and lukewarm reception to its latest product offerings.

Berkshire’s Winning Bets in Communications

In contrast to Apple’s recent struggles, certain holdings have emerged as beacons of success for Berkshire Hathaway. Charter Communications ($CHTR) has been the standout performer, gaining an impressive 10.5% since July 31.

This rally has propelled the cable operator’s shares up by 32% for the year, nearly matching Apple’s run. Although Berkshire Hathaway’s stake in Charter is less than 1% of Buffett’s portfolio, the double-digit gain since July has added $163.6 million in value.

Similarly, T-Mobile US ($TMUS) has posted a 2.3% gain since July 31. However, due to Berkshire Hathaway’s ownership of less than 1% of the company, the impact on the portfolio’s overall value is more modest, at a $16.7 million gain.

Occidental Petroleum (OXY)

Energy firm Occidental Petroleum ($OXY) stands out as the only gainer substantial enough to make a meaningful contribution to Berkshire Hathaway’s portfolio.

With Buffett holding a quarter of the stock, accounting for roughly 5% of the portfolio, the stock has experienced a modest 0.1% increase since the pullback.

While the percentage gain is relatively small, the sheer size of Berkshire Hathaway’s position in Occidental Petroleum makes it a notable contributor.

The Importance of Apple’s Recovery

While certain holdings have shown resilience, the performance of Apple remains pivotal for Berkshire Hathaway’s overall portfolio. With Apple representing over half of the U.S.-listed stock portfolio, its trajectory will heavily influence Berkshire Hathaway’s performance in the coming months.

Warren Buffett’s Top Stocks During The Pullback

1. Charter Communications ($CHTR)
– % Change from July 31, 2023: +10.5%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.6%
– Sector: Communication Services

2. Markel Group ($MKL)
– % Change from July 31, 2023: +2.5%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.2%
– Sector: Financials

3. T-Mobile US ($TMUS)
– % Change from July 31, 2023: +2.4%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.2%
– Sector: Communication Services

4. Aon ($AON)
– % Change from July 31, 2023: +1.9%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.5%
– Sector: Financials

5. Activision Blizzard ($ATVI)
– % Change from July 31, 2023: +1.8%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.5%
– Sector: Communication Services

WATCH: Warren Buffett’s Stock Portfolio

6. Mastercard ($MA)
– % Change from July 31, 2023: +1.4%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.5%
– Sector: Financials

7. Globe Life ($GL)
– % Change from July 31, 2023: +1.1%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 0.1%
– Sector: Financials

8. Occidental Petroleum ($OXY)
– % Change from July 31, 2023: +0.1%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 4.7%
– Sector: Energy

9. Apple ($AAPL)
– % Change from July 31, 2023: -8.0%
– % of Berkshire Hathaway’s U.S.-listed portfolio: 55%
– Sector: Technology

Warren Buffett’s strategic diversification across various sectors is a prudent move to safeguard against any future volatility.


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