Plenty of big-time investors have made a name for themselves over the years, but arguably none have become as big of a household name as Warren Buffett. Thanks to personal achievements and the success of his company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Buffett has even become known as the "Oracle of Omaha."
With a track record of decades of market-beating returns, it's no surprise that investors of all experience levels (myself included) turn to Buffett's words and Berkshire Hathaway's holdings for guidance on how to approach the market.
Below are Berkshire Hathaway's top five holdings, according to CNBC:
Company | Percentage of Portfolio |
---|---|
Apple (NASDAQ: AAPL) | 23.2% |
American Express (NYSE: AXP) | 15.4% |
Bank of America (NYSE: BAC) | 12.1% |
Coca-Cola (NYSE: KO) | 8.6% |
Chevron (NYSE: CVX) | 6.4% |
Buffett is known for his long-term investing approach. One of my favorite Buffett quotes speaks to this mentality, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes."
It sounds simple enough in theory, but it's easy to get lured in by short-term happenings in the stock market.
That said, recent moves by Berkshire Hathaway remind investors they can invest in a company for the long term while still adjusting their stake when it makes sense to do so. For example, since the end of 2023, Berkshire Hathaway has sold around 605 million shares of Apple -- or close to 70% of its stake.
Did Buffett and his team do this because they have lost faith in Apple's long-term potential? Not at all. Buffett cited high valuations while anticipating a rise in capital gains taxes as reasons for shrinking the Apple position. For Berkshire Hathaway, that makes sense.
Of course, your situation and that of a trillion-dollar corporation are very, very different, but it highlights how investors can keep a long-term mindset while still making adjustments to their portfolio along the way.
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American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Chevron. The Motley Fool has a disclosure policy.