Exploring Warren Buffett’s 2024 Portfolio: Top 12 Stock Picks

Warren Buffett is a legendary investor known for his long-term approach to investing in fundamentally strong businesses. In his recent annual letter to Berkshire shareholders, Buffett reiterated his commitment to owning businesses with enduring economics. However, what caught the market’s attention was the revelation that Berkshire’s cash pile has soared to about $167.6 billion as of the end of 2023.

Buffett attributed the lack of good investing opportunities to the current market environment, where he sees only a handful of companies that impress Berkshire in the US and essentially no candidates outside the country. Despite the abundance of financial news and trading platforms, Buffett believes that investors have not necessarily gotten wiser over time, as the market continues to exhibit “casino-like” behavior.

One key takeaway from Buffett’s letter is his view on “market seizures” as investing opportunities. He highlighted how market disruptions can lead to mispriced stocks of fundamentally good businesses, presenting attractive buying opportunities for Berkshire. Buffett’s ability to respond to market seizures with huge sums and certainty of performance may offer occasional large-scale opportunities for the company.

Now, let’s take a closer look at Warren Buffett’s top 12 stock picks for 2024:

1. Kroger Co (NYSE: KR)
– Warren Buffett’s Stake: $2,285,500,000
– Berkshire Hathaway had a $2.3 billion stake in the grocery company as of the end of 2023.
– Analysts see strong upside potential for Kroger Co, with a price target of $65.

2. VeriSign, Inc (NASDAQ: VRSN)
– Warren Buffett’s Stake: $2,639,503,654
– Berkshire owns a $2.6 billion stake in the DNS registry and internet infrastructure company.
– VeriSign recently posted strong Q4 results, beating estimates for EPS and revenue.

3. Citigroup Inc (NYSE: C)
– Warren Buffett’s Stake: $2,841,792,358
– Berkshire’s portfolio includes Citigroup, with a stake of $2.84 billion.
– Citigroup is expected to deliver more in dividends than cash over the next three years.

4. Davita Inc (NYSE: DVA)
– Warren Buffett’s Stake: $3,781,371,913
– Berkshire owns a $3.78 billion stake in the kidney dialysis services company.
– Davita recently posted strong Q4 results, beating estimates for EPS and revenue.

5. Moody’s Corp (NYSE: MCO)
– Warren Buffett’s Stake: $9,635,028,496
– Berkshire’s portfolio features Moody’s Corp, with shares up by about 29% over the past year.
– Moody’s recently increased its dividend and authorized additional share repurchases.

6. Kraft Heinz Co (NASDAQ: KHC)
– Warren Buffett’s Stake: $12,041,975,570
– Berkshire has held the consumer company since 2015, with a $12 billion stake.
– Kraft Heinz recently posted Q4 results, beating estimates for EPS.

7. Occidental Petroleum Corp (NYSE: OXY)
– Warren Buffett’s Stake: $14,552,270,657
– Berkshire owns a $15 billion stake in the energy giant, with Buffett increasing his stake last year.
– Occidental Petroleum Corp is exploring a sale of Western Midstream Partners.

These are just a few of Warren Buffett’s top stock picks for 2024. As an investor, it’s essential to analyze the fundamentals of these companies and consider their long-term potential before making any investment decisions. Buffett’s approach to investing in fundamentally strong businesses with enduring economics has proven successful over the years, making his portfolio a valuable source of inspiration for investors looking to build wealth over time.