Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B), likes to say that his ideal holding period is “forever.” But he never has been shy about dumping stocks that no longer hew to his high standards, even if they are some of the bluest of blue-chip stocks.
The Oracle of Omaha has famously held American Express (AXP), a member of the Dow Jones Industrial Average, since 1963. He added Coca-Cola (KO), another Dow stock, to Berkshire Hathaway’s portfolio in 1988 and has held tight ever since. But for every American Express and Coca-Cola, there many more just-as-famous blue chips that Buffett has banished from Berkshire’s portfolio.
Warren Buffett typically doesn’t like to say too much about the reasoning behind Berkshire Hathaway’s buying and selling of individual securities. And it’s not always clear who is acting on Berkshire Hathaway’s behalf because Buffett shares responsibility for the company’s portfolio with lieutenants Ted Weschler and Todd Combs.
One thing, however, is for sure: When Warren Buffett makes a mistake, he’s quick to rectify it. If a company flounders because of management missteps, the industry turns against it or Warren Buffett is just plain wrong in his reading of the economic cycle, he will not hesitate to cut and run, no matter how illustrious the name.
Here are 10 examples of Warren Buffett bailing out on some of the biggest blue-chip stocks.
Disclaimer
Data is as of May 2, 2018. Click on ticker-symbol links in each slide for current share prices and more.
FAQs
His company sold off 51,000 shares of Vitesse Energy Inc. (VTS) valued at under $1 billion. It also exited healthcare firm McKesson Corp. (MCK), selling roughly 2.3 million shares worth $815 million as of the last 13F.
What blue-chip stocks are at all time low? ›
Low Price Blue Chips stocks
| S.No. | Name | 52w Low Rs. |
|---|
| 1. | St Bk of India | 499.35 |
| 2. | Kotak Mah. Bank | 1643.50 |
| 3. | Vedanta | 230.05 |
| 4. | SRF | 2040.00 |
23 more rowsIt's no secret that billionaire investor Warren Buffett is a huge fan of Coca-Cola (KO 0.83%), both the business and the beverage. The stock is one of Berkshire Hathaway's (BRK.A 0.68%) biggest holdings today, in fact, thanks to some impressive capital gains over the past 30 years.
What does Warren Buffett not invest in? ›
Gold. While Buffett is known for being uninterested in gold investing — describing it in a 2011 letter to shareholders as an asset “that will never produce anything” — other money mavens consider it to be a solid hedge against inflation because its purchasing power has remained relatively stable over time.
What stocks is Warren Buffett buying 2023? ›
Buffett's Biggest Holdings
| Company (Ticker) | Sector | % of Portfolio |
|---|
| Kraft Heinz (KHC) | Consumer Staples | 4.4% |
| Occidental Petroleum (OXY) | Energy | 4.1% |
| Moody's (MCO) | Finance | 2.3% |
| Activision Blizzard (ATVI) | Information Technology | 1.4% |
6 more rowsJun 27, 2023
Top stocks Warren Buffett owns by size
| Stock | Number of Shares Owned | Value of Stake |
|---|
| Apple (NASDAQ:AAPL) | 915,560,382 | $171.8 billion |
| Bank of America (NYSE:BAC) | 1,032,852,006 | $30 billion |
| American Express (NYSE:AXP) | 151,610,700 | $24.3 billion |
| Coca-Cola (NYSE:KO) | 400,000,000 | $24.2 billion |
6 more rowsSep 12, 2023
The most undervalued company on the list is Skyworks Solutions, trading at a 32% discount to the fair value estimate set by Morningstar analysts. The least undervalued on the list is Microchip Technology, trading at a 13% discount.
What is the best performing blue-chip stocks? ›
- Johnson & Johnson (JNJ)
- Procter & Gamble Co (PG)
- AbbVie Inc (ABBV)
- Coca-Cola Co (KO)
- Nike Inc (NKE)
- Honeywell International Inc (HON)
- The Goldman Sachs Group Inc (GS)
- Methodology.
7 Best Blue Chip Stocks
| Name | Ticker | Industry |
|---|
| Walmart Inc. | (NYSE: WMT) | Retail |
| ExxonMobil Corporation | (NYSE: XOM) | Oil and gas |
| Johnson & Johnson | (NYSE: JNJ) | Pharmaceuticals |
| Procter & Gamble | (NYSE: PG) | Consumer staples |
3 more rowsSep 8, 2023
Here's what Buffett and his team have been buying
| Company (Symbol) | Shares Bought | New Position? |
|---|
| Capital One Financial (COF 2.15%) | 2,549,030 | No, added 25% to existing. |
| D.R. Horton (DHI -2.46%) | 5,969,714 | Yes |
| NVR (NVR -2.01%) | 11,112 | Yes |
| Lennar (LEN.B) | 152,572 | Yes |
1 more rowAug 16, 2023
Key Takeaways
Buffett also reviews a company's profit margins to ensure they are healthy and growing. Buffett prefers companies that have a unique product or service that gives them a competitive advantage. As a value investor, he seeks out stocks that are undervalued relative to the company's intrinsic worth.
What were Warren Buffett's best investments? ›
Warren Buffett's and Berkshire Hathaway's top investments
| Stock | Shares owned | Value |
|---|
| Apple (AAPL) | 915,560,382 | $177.6 billion |
| Bank of America (BAC) | 1,032,852,006 | $29.6 billion |
| American Express (AXP) | 151,610,700 | $26.4 billion |
| Coca-Cola (KO) | 400,000,000 | $24.1 billion |
4 more rowsAug 31, 2023
The Buffett Rule is the basic principle that no household making over $1 million annually should pay a smaller share of their income in taxes than middle-class families pay. Warren Buffett has famously stated that he pays a lower tax rate than his secretary, but as this report documents this situation is not uncommon.
What is the buffet $1 rule? ›
Simply stated, this means that Re 1 of profit that a company retains should, over time, translate into at least Re 1 of market value. Buffett applies this on a five-year rolling basis.
What is Warren Buffett 70 30 rule? ›
What Is a 70/30 Portfolio? A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.
What stocks did Warren Buffett buy to get rich? ›
He also invested in American Express, Bank of America, Coca-Cola, and Apple, among many others, focusing on solid brands and businesses with a secure economic moat. Buffett bought for the long haul, preferring to buy and hold his investments, which tended to terrifically appreciate in value over time.
Why didn't Warren Buffet split the stock? ›
Berkshire Hathaway Chairman and CEO Warren Buffett has never allowed a stock split of the company's A shares, despite their high trading prices. Buffett believes that splitting the stock would go against his strategy and that the high price tag attracts like-minded investors seeking long-term gains in intrinsic value.
At what price did Warren Buffet buy HP stock? ›
Berkshire Hathaway's HP Stake
The investor owns 11.11% of the outstanding HP stock. The first HP trade was made in Q1 2022. Since then Warren Buffett bought shares three more times and sold shares on two occasions. The investor's estimated purchase price is $4.14 Billion, resulting in a loss of 22%.
What stock did Warren Buffett buy when he was 11? ›
“The year was 1942, I was 11, and I went all in, investing $114.75 I had begun accumulating at age 6,” Buffett wrote in his annual letter to shareholders in 2019. “What I bought was three shares of Cities Service preferred stock.
