AAPL

Apple Inc.

150.77
USD
0.23%
150.77
USD
0.23%
129.04 182.94
52 weeks
52 weeks

Mkt Cap 2.47T

Shares Out 16.41B

Chat
Send me real-time posts from this site at my email

These Are the 16 Stocks Warren Buffett Has Bought in 2022

It's been a trying year for Wall Street professionals and everyday investors. Since the year began, the broad-based S&P 500 declined as much as 24% from its all-time closing high. Meanwhile, the tech-heavy Nasdaq Composite has fared even worse, with a peak-to-trough plunge since its record-closing high in November of 34%. While bear market declines are known for sending nervous investors scurrying to the sidelines, they're just the opportunity successful money managers use to pounce. Just ask Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. Warren Buffett has been a busy bee during the first half of 2022 Despite an incredible amount of volatility in the first half of the year, the Oracle of Omaha has put tens of billions of dollars in Berkshire's capital to work in over a dozen stocks since 2022 began. We know this because Berkshire Hathaway is required to file Form 13F with the Securities and Exchange Commission (SEC) on a quarterly basis. A 13F is a filing that allows investors an under-the-hood look at what the brightest money managers with at least $100 million in assets under management were buying, selling, and holding during the previous quarter. With two 13F filings under his belt through June, here are all 16 stocks Warren Buffett has bought in 2022, as well as the aggregate shares purchased this year. What's plain as day from the Oracle of Omaha's buying activity in 2022 is that he's confident about four sizable bets. Tech is king (sort of) Although Wall Street has been leery of tech stocks in recent months, Warren Buffett has continued to plow money into the sector. During the first six months of the year, Buffett and his investing team purchased more than 7.6 million shares of the largest publicly traded company in the United States. Berkshire Hathaway's stake in Apple accounted for a whopping 42.6% of its nearly $372 billion of invested assets, as of the closing bell on Aug. 16, 2022. While tech is king within Buffett's portfolio, it's a statement that comes with an asterisk, because it's really all about Apple. As I've previously pointed out, Apple has pivoted its exceptional branding and customer loyalty into a launchpad for its high-margin subscription services push. Services has consistently grown by a double-digit percentage for Apple, and should allow the company to better manage the revenue peaks and troughs associated with product replacement cycles. Buffett and his team also took the time to add to their stake in gaming company Activision Blizzard as well during the second quarter. Activision is a rare investment for the Oracle of Omaha and his investing team in that it's purely an arbitrage play. Microsoft made an all-cash offer of $95 per share to acquire Activision in January, yet shares of the company have been mostly stuck between $74 and $81 as regulators ponder whether to allow the deal to go through. Financials are still a favorite long-term bet There's no sector of the market the Oracle of Omaha is more comfortable putting his company's money to work in than financial stocks. Specifically, Buffett has been investing in a handful of new bank-stock holdings in 2022: Citigroup and Ally Financial. Why bank stocks? The simple answer is they're boring moneymakers over the long run, and that's just the type of investment Warren Buffett loves. Even though recessions are an inevitable part of the economic cycle, periods of expansion last significantly longer than contractions and recessions. Long-winded expansions are what allow banks to grow their loans and deposits, which in turn lets them return capital to shareholders via dividends and/or share buybacks. What makes bank stocks like Citigroup and Ally Financial especially intriguing at the moment is the Federal Reserve's monetary policy shift. With the U.S. inflation rate hitting a four-decade high of 9.1% in June 2022, the nation's central bank has no choice but to get extremely aggressive with rate hikes to tame skyrocketing prices. The end result for banks is a sizable increase in the yields they'll net on their outstanding variable-rate loans. Even if delinquencies rise, the consumers and businesses paying higher yields on these outstanding variable-rate loans should allow earnings to grow for banks. As one added bonus, Citigroup and Ally Financial are both trading below their respective book values, which makes both intriguing value plays. Energy stocks have never been more popular with Buffett At no point since the start of the century have energy stocks comprised such a large percentage of Berkshire Hathaway's investment portfolio. Since the year began, more than 188 million shares of Occidental Petroleum and north of 123 million shares of Chevron have been purchased by Buffett's company. For Warren Buffett to be making such a massive bet on the oil and gas sector, he would have to be of the opinion that energy commodity prices will remain elevated for years to come. This certainly isn't a far-fetched idea with major energy companies substantially reducing their capital investments during the COVID-19 pandemic and Russia's invasion of Ukraine complicating an already challenged global supply chain. With no immediate fix to global supply issues, elevated oil and gas prices could very easily benefit upstream providers for years to come. It just so happens that Chevron and Occidental are also integrated oil and gas companies. "Integrated" companies operate midstream and/or downstream assets, in addition to drilling and exploration. Midstream companies oversee transmission pipelines and storage, which often run on transparent and predictable fixed-fee or volume-based contracts. Meanwhile, downstream assets, such as refineries and chemical plants, benefit when crude oil prices fall. With lower input costs, downstream assets can generate better margins and somewhat hedge upstream drilling weakness. With Big Oil often delivering big dividends, the sector looks like a solid bet in a high-inflation environment. Buffett's own company remains his top bet However, Warren Buffett's favorite stock to buy over the past four years isn't going to show up on the company's 13F filing. Rather, investors have to sift through the company's quarterly report to find its share buyback activity. Through the first half of 2022, Warren Buffett and right-hand man Charlie Munger have overseen the purchases of 4,402 shares of the company's Class A shares (BRK.A) and 6,850,133 Class B shares (BRK.B). All told, more than $62 billion has been deployed since July 2018 to repurchase Berkshire Hathaway's common stock. The "Why?" here is simple: Buffett and Munger believe their company is undervalued and are more than willing to bet on themselves to outperform over long periods of time. Warren Buffett loves cyclical companies and dividend stocks -- two categories that tend to grow in value and create wealth for long-term shareholders. Something else to note is that buying back stock usually has a positive effect on perceived value for businesses with steady or growing net income. If a company's share count decreases over time, steady or growing profit should lead to rising earnings per share. This can make a publicly traded stock more fundamentally attractive to the investing community. 10 stocks we like better than Berkshire Hathaway (B shares) When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of August 11, 2022 Ally and Citigroup are advertising partners of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway (B shares), HP, Markel, Microsoft, and RH. The Motley Fool recommends McKesson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today’s Big Picture Asia-Pacific equity indexes ended today’s session mixed. Hong Kong’s Hang Seng fell 0.67%, China’s Shanghai Composite ended the day essentially flat, down a mere 0.02% while Australia’s ASX All Ordinaries gained 0.50%, Taiwan’s TAIEX advanced 0.84%, and Japan’s Nikkei rose 1.14%. India’s markets are closed to mark the country’s Independence Day holiday and South Korean markets are closed today to mark that country’s Liberation Day. Interestingly, Liberation Day is celebrated in both South and North Korea. By mid-day trading, major European equity indices are up moderately, and U.S. futures point to a down open later this morning. Following the robust movement in equities over the last few weeks, as we start the new week off, they look to give back at least some of those gains. The surprise rate cut by the People’s Bank of China this morning raises fresh questions over the speed of the global economy, especially after July economic data for China missed expectations. Even though we have a sizable downshift in the number of companies reporting their quarterly earnings this week, we see a meaningful pivot toward retail companies, the majority of which were plagued with bloated inventories when they reported their prior quarter. Expectations are for margin and bottom line pain as they look to clear out those inventories in time to prepare for the important holiday shopping season. As these reports roll in, we’ll know how bad the pain is and whether consumers are biting. Data Download International Economy The People's Bank of China surprised by cutting its one-year lending facility rate by 10 basis points to 2.75% and cut the seven-day lending rate, the same amount to 2%. The move preceded weaker than expected July data for the country. China's July Industrial Production rose 3.8% YoY, below the expected 4.6%, and slightly lower than June’s 3.9% figure. Retail sales increased 2.7% YoY in July below the 5% forecast. Manufacturing hubs and popular tourist spots imposed lockdown measures in July after fresh outbreaks of the more transmissible Omicron variant were found. On Friday, China reported more than 2,000 local Covid-19 cases as infections in the southern Hainan island edged higher with mass testing and several lockdowns resulting. Japan’s preliminary GDP for 2Q 2022 came in at 2.2% YoY, better than the 0.1% reading for the prior quarter but below the expected 2.5% figure. On a QoQ basis, the preliminary reading was 0.5%, up from 0.0% in 1Q 2022 but again below the expected figure of 0.6%. Wholesale prices in Germany increased by 19.5% YoY in July of 2022 following the 21.2% gain the prior month. Compared with the previous month, wholesale prices fell 0.4% in July, the first decline since October 2020. Domestic Economy At 8:30 AM ET, we’ll get the NY Empire Manufacturing Index data for August and the headline reading is projected to fall to 5.5 from July’s 11.1 reading. AT 10 AM ET, the NAHB Housing Market Index for August will be published, and the consensus view has it unchanged MoM at 55. The U.S. House of Representatives voted 220 to 207 along party lines on Friday to pass the Inflation Reduction Act, paving the way for wide-ranging reforms in healthcare and clean energy. President Biden is expected to sign the bill into law. Data from AAA put the national average gas price at $3.959 over the weekend, but Goldman Sachs (GS) sees the price surging back to $5 by the end of the year with Brent crude returning to $130 a barrel as the market still needs to balance rising demand and tight supplies. Following last week’s inflation data, markets see a 50% chance the Fed will hike by 75 basis points in September and that rates will rise to around 3.50-3.75% by the end of the year. Meanwhile, the bond market continues to question if the Fed can deliver a soft landing, with the yield curve remaining deeply inverted. Markets Markets closed the week on a strong note with Friday seeing almost all sectors up over 1.00% and Consumer Discretionary names well over 2.00%. The Dow rose 1.37%, the S&P 500 advanced 1.73% and both the Nasdaq Composite and the Russell 2000 posted a 2.09% gain on the day. In reviewing top contributors to returns across the sectors, Apple (AAPL) and Microsoft (MSFT) combined to account for about 48% of Technology sector returns, while Tesla (TSLA) managed to do that all on its own for the Consumer Discretionary sector. Here’s how the major market indicators stack up year-to-date: Dow Jones Industrial Average: -7.09% S&P 500: -10.20% Nasdaq Composite: -16.60% Russell 2000: -10.19% Bitcoin (BTC-USD): -48.93% Ether (ETH-USD): -48.19% Stocks to Watch Before trading kicks off for U.S.-listed equities, Clear Secure (YOU), Li Auto (LI), Tufin Software (TUFN), and Weber (WEBR) will be among the companies issuing their latest quarterly results and guidance. Bloomberg reports Wells Fargo (WFC) is looking to shrink its once dominant mortgage business. Shares of PlayAGS (AGS) jumped in after-hours trading on Friday after confirming Inspired Entertainment (INSE) made a $10 per share offer for the slot machine maker. IPOs GigaCloud Technology (GCT) and Innovative Eyewear (LUCY) could price their respective IPOs this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page. After Today’s Market Close Fabrinet (FN), Global-E Online (GLBE), Navitas Semiconductor (NVTS), World Wrestling (WWE), and ZipRecruiter (ZIP) are expected to report their quarterly results after equities stop trading today. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar. On the Horizon Tuesday, August 16 UK: Employment Change, Average Hourly Earnings – June Germany: ZEW Current Conditions & Economic Sentiment – August Eurozone: ZEW Economic Sentiment – August US: Housing Starts & Building Permits – July US: Industrial Production & Capacity Utilization – July Wednesday, August 17 Japan: Core Machinery Orders – June Japan: Imports/Exports – July UK: CPI, PPI – July Eurozone: 2Q 2022 GDP US: Weekly MBA Mortgage Applications US: Retail Sales – July US: Business Inventories – June US: Weekly EIA Crude Oil Inventories US: Federal Reserve FOMC Meeting Minutes - July Thursday, August 18 Eurozone: CPI - July US: Weekly Initial & Continuing Jobless Claims US: Philadelphia Fed Index – August US: Existing Home Sales – July US: Weekly EIA Natural Gas Inventories Friday, August 19 Japan: CPI – July UK: Retail Sales – July Germany: PPI - July Thought for the Day “People who avoid failure also avoid success.” ~ Derrick Lewis Disclosures Tufin Software (TUFN) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Tesla (TSLA), Li Auto (LI) are constituents of the Tematica BITA Cleaner Living Index Tesla (TSLA), Li Auto (LI) are constituents of the Tematica BITA Cleaner Living Sustainability Screened Index Apple (AAPL), Microsoft (MSFT) are constituents of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue