In accordance to top rated ten holdings figures, a Top quality aspect of GuruFocus, the top rated five holdings of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) as of the second quarter were Apple Inc. (NASDAQ:AAPL), Financial institution of America Corp. (NYSE:BAC), Coca-Cola Co. (NYSE:KO), American Express Co. (NYSE:AXP) and The Kraft Heinz Co. (NASDAQ:KHC).

Buffett, who is celebrating his ninetieth birthday on Aug. 30, analyzed below the famous Benjamin Graham at Columbia College in 1951. The “Oracle of Omaha” purchased Berkshire Hathaway, which was then a textile manufacturing corporation, in the course of the nineteen sixties. Underneath his leadership, shares of Berkshire averaged a 21.4{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} compounded yearly acquire in ebook value for every share from 1965 to 2006. The Omaha, Nebraska-based mostly insurance coverage conglomerate’s market place cap stood at approximately $519 billion on Thursday.


Buffett follows a value investing approach based mostly on his mentor’s strategy. The famous expert and his co-manager, Charlie Munger (Trades, Portfolio), search for corporations making use of a four-criterion strategy to investing: understandable enterprise, favorable prolonged-phrase prospects, operated by trustworthy and competent people today and offered at a quite interesting price.


As of the June-quarter filing day, Berkshire’s $202.41 billion fairness portfolio includes forty four stocks, with one new posture and a turnover ratio of one{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312}. The top rated a few sectors in phrases of fat are technology, financial products and services and buyer defensive, representing 45.76{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312}, 31.72{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} and 15.01{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of the fairness portfolio.



Berkshire owns 245,a hundred and fifty five,566 shares of Apple, unchanged from the very first-quarter filing. Shares occupy forty four.18{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of the fairness portfolio, up from the earlier quarter’s fat of 35.52{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312}.


On Thursday, shares of the Cupertino, California-based mostly tech huge shut at $five hundred.04, down one.20{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} from Wednesday’s near of $506.09. Berkshire has received more than $eighty billion in its expense in Apple considering the fact that originally buying shares in the course of the very first quarter of 2016.


GuruFocus ranks Apple’s profitability ten out of ten on a number of beneficial investing signals, which incorporate a 4.five-star enterprise predictability rank and margins and returns that are outperforming more than 95{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global opponents. In spite of this, Apple’s valuation ranks one out of ten on a number of signals of overvaluation, which incorporate price-ebook and price-income ratios around ten-12 months highs and are underperforming more than 90{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global hardware corporations.

Financial institution of America

In accordance to GuruFocus Authentic-Time Picks, a Top quality aspect, Berkshire owns one,032,852,006 shares of Financial institution of America as of Aug. 4, offering the stake fourteen.fifty seven{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} fat in the fairness portfolio.


GuruFocus ranks the Charlotte, North Carolina-based mostly bank’s financial toughness rank 3 out of ten on the back of credit card debt ratios underperforming more than 64{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global opponents regardless of fairness-to-asset ratios outperforming more than 56{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global banking institutions.



Berkshire owns 400 million shares of Coca-Cola, offering the posture eight.eighty three{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} fat in the fairness portfolio.


GuruFocus ranks the Atlanta-based mostly beverage giant’s financial toughness five out of ten, weighed down by credit card debt-to-fairness ratios around 3 and underperforming 94{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global opponents regardless of a powerful Altman Z-score of 3.43.


American Express

Berkshire owns 151,610,700 shares of American Express, offering the holding seven.13{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} fat in the fairness portfolio.


GuruFocus ranks the New York-based mostly credit rating card company’s financial toughness 3 out of ten, weighed down by fairness-to-asset and credit card debt-to-fairness ratios underperforming more than 68{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global opponents.


Kraft Heinz

Berkshire owns 325,634,818 shares of Kraft Heinz, offering the posture five.13{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} fat in the fairness portfolio.


GuruFocus ranks Kraft Heinz’s financial toughness 4 out of ten on a number of warning signals, which incorporate a weak Altman Z-score of .seventy nine and credit card debt ratios that are underperforming more than sixty{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of global opponents.


See also

The next video clip summarizes Berkshire’s top rated holdings.

Disclosure: The creator is prolonged Apple as of this crafting. The point out of holdings in this posting reflect info as of the June filing and does not incorporate trades made in July-August.

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About the creator:

James Li

I am an editorial researcher at GuruFocus. I have a Master’s in Finance from SMU, and I get pleasure from crafting stories on financial trends and trader portfolios. Adhere to me on Twitter at @JamesLiGuru!

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