Second largest shareholding for Warren Buffett after Apple by 2027
Anyone who follows Warren Buffett $Apple (AAPL.US)$ Is his $Berkshire Hathaway-A (BRK.A.US)$ 、 $Berkshire Hathaway-B (BRK.B.US)$ You probably know that it occupies the largest position in its portfolio. Tech giants currently account for a whopping 41.2% of Berkshire's total stock investment.
What stocks rank 2nd? As of now, it's $Bank of America (BAC.US)$ It is. However, this large bank may not be able to maintain its position for that long.
Current strong candidates
First, I anticipate that Apple will continue to stay at the top of the Berkshire list for years to come. The conglomerate reduced its position in Apple slightly in the fourth quarter of 2023, but Buffett still appreciates the company and its management team.
It is predicted that Apple's stock price will not fall as big as it falls from the number one position. Admittedly, considering that slight growth, this stock is definitely overvalued. However, artificial intelligence (AI) could be a long-awaited catalyst for Apple over the next few years.
What other stocks currently account for 5% or more of Berkshire's portfolio3 brandsthat's all.
$American Express (AXP.US)$ It's probably not that unreasonable for Bank of America to overtake Bank of America. While the value of Berkshire's Amex stock is close to 36 billion dollars, BofA's stock is 39.1 billion dollars. I don't think Buffett will pour any more money into American Express. However, there is a possibility that Amex shares will grow faster than Bank of America over the next 3 years, which will probably be enough to slip into second place in Berkshire's portfolio.
Berkshire holds 24.7 billion dollars of Coca-Cola shares and 20.8 billion dollars of Chevron shares. I don't think Buffett will buy more Cola shares, but there is a possibility that he will increase Chevron shares (as he did in the fourth quarter). Still, from my point of view, it is unlikely that either brand will replace Bank of America after Apple.
Why is there a possibility that another stock will rise to second place
However, there is a possibility that another brand will jump over Bank of America, American Express, Coca Cola, and Chevron to become Mr. Buffett's second place. $Occidental Petroleum (OXY.US)$ I think they have all the ingredients to surpass these brands.
Buffett loves Oxey. He wrote to Berkshire shareholders earlier this year and said he plans to hold shares in oil and gas production companies “indefinitely.” He also praised Occidental's CEO Vicky Holb, who stated that she “knows how to separate oil from rock, and that is an extraordinary talent that is valuable to shareholders and the country.”
More importantly, Buffett continues to show his love for Occidental by actively buying shares. He began his stock position in the first quarter of 2022. Berkshire is currently the company's stock28%I own it. The conglomerate won regulatory approval to acquire up to 50% of Oxy in August 2022.
At this pace, Berkshire could easily own half of Occidental's stock by the end of 2027. Based on the company's current market capitalization, its shares would be worth around $30 billion. This is still far below the level necessary to become Berkshire's second-largest holding stock in place of Bank of America, but we do not anticipate that the total market value of Oxy will remain at the current level.
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