Warren Buffett’s Secret Portfolio: Five Magnificent Stocks Added in the March-Ended Quarter
Unlocking Warren Buffett’s Secret Portfolio: Five Phenomenal Businesses Revealed
For almost six decades, Warren Buffett has been dazzling investors with his ability to outperform the market and generate incredible returns for Berkshire Hathaway shareholders. While his quarterly 13F filings provide a glimpse into his publicly disclosed holdings, there is a “secret” portfolio that often goes unnoticed.
Back in 1998, Berkshire Hathaway acquired General Re, which included a specialty investment company called New England Asset Management (NEAM). NEAM manages a portfolio of 90 securities with approximately $646 million in assets under management. While Buffett doesn’t directly oversee NEAM’s investments, the securities held in this “secret” portfolio ultimately belong to Berkshire Hathaway.
Discovering the Hidden Gems
During the March-ended quarter, NEAM added five phenomenal businesses to its portfolio, shedding light on Warren Buffett’s investment strategy and the industries he finds attractive.
1. AT&T and Verizon Communications
Despite Buffett’s recent avoidance of legacy telecom companies, NEAM purchased shares of AT&T and Verizon Communications in the first quarter. Both companies have faced challenges in the current market, including rising interest rates and potential legal liabilities related to lead-sheathed cables.
However, AT&T has made progress in reducing its debt and benefiting from the 5G revolution, while Verizon continues to see growth in broadband customers. These factors make them intriguing additions to the secret portfolio.
2. Johnson & Johnson
NEAM also acquired shares of healthcare giant Johnson & Johnson, a company with a AAA credit rating and a focus on innovative drug development. Despite legal challenges related to talcum-based baby powder, J&J’s strong margins and pricing power make it a compelling investment.
3. Wells Fargo
Wells Fargo, a former top holding for Berkshire Hathaway, saw NEAM adding shares in the first quarter. The bank benefits from economic expansion, rate hikes, and a loyal customer base, positioning it well for long-term growth despite past scandals.
4. Chevron
Energy titan Chevron was another addition to the secret portfolio, with NEAM increasing its stake in the company. Chevron’s flexible balance sheet, strategic acquisitions, and integrated business model make it an attractive investment in the current energy landscape.
By uncovering these hidden gems in Warren Buffett’s secret portfolio, investors gain insight into his long-term investment approach and the industries he believes hold promise for the future. While the 13F filings offer a glimpse into Berkshire Hathaway’s public holdings, it’s the “secret” portfolio that may hold the key to unlocking Buffett’s true investment genius.