Buffett's stock portfolio scores a solid year — even though he ignores any given annual return - CNBC

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Warren Buffett's Berkshire Hathaway is wrapping up a solid year with its stock holdings as Apple soared to a record high last week, but don't expect any fireworks or back slapping. The legendary "Oracle of Omaha" doesn't typically pay attention to stock performance in any given year. Berkshire's 915 million shares of Apple are now worth more than $180 billion, benefiting from the iPhone maker's 52% rally in 2023 that recently pushed shares to an all-time record around $198. The Apple stake was valued at $119 billion at the end of 2022. AAPL YTD mountain Apple Its third biggest holding, American Express , has rallied more than 22% this year. Healthcare name DaVita and ratings agency Moody's , which were both among Berkshire's top 10 holdings, have both gained about 40% in 2023. The stellar performance from these shares helped offset the weaker corners of the portfolio. For example, Berkshire's fourth biggest holding — Coca-Cola — is down 7% this year while Chevron , another top position that was trimmed earlier this year, fell 17% amid slumping crude oil prices. At the same time as Chevron sank, the 93-year-old Buffett used the downturn in the energy sector to add to his favorite producer, Occidental Petroleum. Earlier this week, Berkshire bought another 10 million shares of Occidental, pushing its stake to 27% and endorsing its pending acquisition of CrownRock. Besides the Occidental purchase, Buffett was mostly in a defensive mode, pushing Berkshire's cash pile to new heights and selling down big stakes including Chevron and HP. Shares of the conglomerate have gained more than 16% this year on the back of strong operating earnings as well as billions in returns from its Treasury holdings. The stock reached an all-time high in September. Not the Faintest Idea The Berkshire CEO likes to remind his shareholders that, as a long-term value investor, he doesn't care about how his stocks perform in the short run. "We've made a lot of money in stocks over time, but there's been years when we've lost money, too," Buffett said in a CNBC interview in 2019. "I tell the shareholders that we expect to make money on stocks over time. We haven't got the faintest idea what [individual] years we'll be up or down." Buffett, who studied under Benjamin Graham at Columbia University, the fabled father of value investing, views his stock holdings as pieces of real businesses. He also prefers companies that pay dividends and buy back their own stock. "We're buying stocks that in some cases we will hold 10, 20 maybe even longer years. And those companies are retaining earnings. They're reducing the number of shares. They've got a lot of things going for them," Buffett said. Buffett thinks the average investor should only focus on the long term, ignoring any turbulence in the broader market and avoiding both panic selling and panic buying. "We had $173 billion of equities at year end, and I love having those," he said in 2009. "They will make us money over time. But I have no idea what they'll do in the next year or two." Berkshire today owns about $373 billion of stocks, based on market prices Friday, according to CNBC's Berkshire portfolio tracker.

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Buffett's stock portfolio scores a solid year — even though he ignores any given annual return - CNBC

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