Warren Buffett, also known as the Oracle of Omaha, is a name that jumps to the forefront of many minds when thinking of the financial world.
Many mimic his portfolio moves.
And recently, the Oracle of Omaha has been critical of those opposing share buybacks, as revealed in the latest shareholder letter.
Many have become weary of buybacks, with President Joe Biden fiercely opposing the practice by introducing a new 1% tax on the practice.
Of course, much more was discussed in the letter, including an update on operations and financial results.
Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple (AAPL - Free Report) , Bank of America (BAC - Free Report) , and Chevron (CVX - Free Report) – would provide precisely that.
Below is a chart illustrating the year-to-date performance of all three stocks above, with the S&P 500 blended in as a benchmark.
Let’s take a closer look at each one.
Chevron
Chevron is one of the world's largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. Interestingly enough, the company recently unveiled a massive $75 billion share purchase program.
The surge in energy prices has amplified the company’s cash-generating abilities, with CVX reporting free cash flow of $8.6 billion in its latest quarter. This is further illustrated in the chart below.
And, of course, the company’s dividend has benefited as well, with CVX’s payout growing by 6% over the last year. The company’s annual dividend currently yields a solid 3.7%.
Apple
Buffett states that he loves the tech titan because of its customers’ brand loyalty; consumers are likely to trade in old Apple products for new ones.
The company snapped a streak of positive surprises in its latest release, falling short of the Zacks Consensus EPS Estimate by roughly 2% and reporting sales 3% below expectations.
The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session.
Apple shares presently trade at a 24.3X forward earnings multiple, a few ticks above the 23.6X five-year median and the Zacks Computer and Technology sector average.
The stock currently has a Value Style Score of “D.”
Bank of America
Another one of the portfolio’s largest holdings, Bank of America, is one of the largest financial holding companies in the U.S.
The company’s TTM price-to-book ratio presently works out to be 1.1X, precisely in line with the five-year median and below highs of 1.7X in 2022.
And similar to CVX, Bank of America rewards its shareholders nicely; the company’s annual dividend yields 2.6%, modestly above the Zacks Finance sector average.
BAC posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 11% and posting revenue 2% above expectations.
Bottom Line
Buffett is a philanthropist and businessman. He’s the CEO of Berkshire Hathaway (BRK.B - Free Report) , a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and others.
And recently, his comments regarding share buybacks in an annual shareholder letter have made headlines during a time when many have become critical of the practice.
Although all may not agree with his statements, for those interested in looking past and structuring a portfolio similar to the Oracle of Omaha, all three stocks above – Apple (AAPL - Free Report) , Bank of America (BAC - Free Report) , and Chevron (CVX - Free Report) – place you on the right track.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Warren Buffett, also known as the Oracle of Omaha, is a name that jumps to the forefront of many minds when thinking of the financial world.
Many mimic his portfolio moves.
And recently, the Oracle of Omaha has been critical of those opposing share buybacks, as revealed in the latest shareholder letter.
Many have become weary of buybacks, with President Joe Biden fiercely opposing the practice by introducing a new 1% tax on the practice.
Of course, much more was discussed in the letter, including an update on operations and financial results.
Nonetheless, for those interested in building a portfolio like Buffett, three top holdings of Berkshire – Apple (AAPL - Free Report) , Bank of America (BAC - Free Report) , and Chevron (CVX - Free Report) – would provide precisely that.
Below is a chart illustrating the year-to-date performance of all three stocks above, with the S&P 500 blended in as a benchmark.
Let’s take a closer look at each one.
Chevron
Chevron is one of the world's largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. Interestingly enough, the company recently unveiled a massive $75 billion share purchase program.
The surge in energy prices has amplified the company’s cash-generating abilities, with CVX reporting free cash flow of $8.6 billion in its latest quarter. This is further illustrated in the chart below.
And, of course, the company’s dividend has benefited as well, with CVX’s payout growing by 6% over the last year. The company’s annual dividend currently yields a solid 3.7%.
Apple
Buffett states that he loves the tech titan because of its customers’ brand loyalty; consumers are likely to trade in old Apple products for new ones.
The company snapped a streak of positive surprises in its latest release, falling short of the Zacks Consensus EPS Estimate by roughly 2% and reporting sales 3% below expectations.
The market shook off the less-than-expected results, with AAPL shares climbing nearly 2% in the following trading session.
Apple shares presently trade at a 24.3X forward earnings multiple, a few ticks above the 23.6X five-year median and the Zacks Computer and Technology sector average.
The stock currently has a Value Style Score of “D.”
Bank of America
Another one of the portfolio’s largest holdings, Bank of America, is one of the largest financial holding companies in the U.S.
The company’s TTM price-to-book ratio presently works out to be 1.1X, precisely in line with the five-year median and below highs of 1.7X in 2022.
And similar to CVX, Bank of America rewards its shareholders nicely; the company’s annual dividend yields 2.6%, modestly above the Zacks Finance sector average.
BAC posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 11% and posting revenue 2% above expectations.
Bottom Line
Buffett is a philanthropist and businessman. He’s the CEO of Berkshire Hathaway (BRK.B - Free Report) , a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and others.
And recently, his comments regarding share buybacks in an annual shareholder letter have made headlines during a time when many have become critical of the practice.
Although all may not agree with his statements, for those interested in looking past and structuring a portfolio similar to the Oracle of Omaha, all three stocks above – Apple (AAPL - Free Report) , Bank of America (BAC - Free Report) , and Chevron (CVX - Free Report) – place you on the right track.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Get the latest research report on BAC - FREE
Get the latest research report on AAPL - FREE
Get the latest research report on CVX - FREE
Get the latest research report on BRK.B - FREE