Warren Buffett stock picks are famously tightly focused and, once again, The Oracle of Omaha’s highly concentrated play on just a few top S&P 500 stocks is paying off.
Matt Krantz for Investor’s Business Daily:
Just three top U.S.-listed stocks in Berkshire Hathaway‘s portfolio, information technology giant Apple (AAPL) plus financials Bank of America (BAC) and American Express (AXP), generated three-quarters of the holding company’s stock gains this year, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
All told, the value of Berkshire Hathaway’s last reported U.S.-listed holdings is up $37.5 billion this year. And of that gain, Apple accounts for 29.4%, Bank of America 25.7% and American Express 20.6%.
“We’ve always known that the dream business is the one that takes very little capital and grows a lot,” Buffett told investors on May 1 of this year. “I mean Apple has $37 billion in property, plant and equipment. Berkshire has $170 billion or something like that, and they’re going to make a lot more money than we do. They’re in a better business.”
Apple shares are finally coming alive in the past 30 days — hitting new all-time highs — and Buffett is a big winner. This single stock accounts for nearly 43% of Berkshire Hathaway’s portfolio of U.S.-listed stocks.
MacDailyNews Take: As Buffett himself famously said:
Diversification is a protection against ignorance.
