Warren Buffett got rid of all airline shares. How else has the Oracle of Omaha investment portfolio changed? We look at which stocks are now included in the top ten of the portfolio and whether they were hit by the coronavirusThe news that Warren Buffett has sold all his shares in the airline business has stirred up Wall Street. The COVID-19 pandemic does not give a chance for an early recovery of this sector, the investor said. And, remaining true to his rule of buying only strong companies, he went into the cache.But it's not just airlines that have been affected by the coronavirus outbreak. The fall did not bypass other stocks included in the investment portfolio of the Berkshire Hathaway conglomerate, which Buffett controls. At the beginning of the year, the value of the portfolio was estimated at $256 billion, and now it is about $194.5 billion.1. AppleThe market value of the largest asset in Buffett's portfolio — the technology giant Apple — is almost $76.2 billion (at market closing prices on May 7). The Berkshire Hathaway conglomerate owns a 5.7% stake in the iPhone manufacturer.As of December 31, 2019, Apple's stake in the portfolio was estimated at almost $71.9 billion. Now it is worth about $76.2 billion. It turns out that Apple's securities have already managed to recover from the coronavirus collapse — the value of the Apple package in the portfolio increased by $4.3 billion.According to the consensus forecast of the Refinitiv service, Apple shares have almost exhausted their growth potential. Nevertheless, the majority of experts recommend buying securities — 29 out of 39 respondents. And only three advise to get rid of them.2. Bank of AmericaBank of America is the largest financial asset of Buffett's company. Berkshire Hathaway owns a 10.9% stake in the bank. The value of this stake is currently about $21.6 billion, while at the beginning of the year the asset was worth almost $32.6 billion.Bank of America securities grew well throughout the past year — from January 2019 to mid-February 2020, they rose by almost 43%. But as a result of the market collapse due to the pandemic, the bank's shares lost 49%. In mid-March, they were given no more than $18 apiece for them.Industry analysts predict the growth of Bank of America shares. According to Refinitiv, the potential is more than 15%. Of the 26 analysts surveyed, 15 recommend buying bank shares, and the remaining 11 recommend continuing to hold previously purchased securities.3. Coca-ColaWarren Buffett has owned shares of the oldest American manufacturer of soft drinks Coca-Cola for more than 30 years, since 1988. Over the years, the investor has accumulated securities worth $17.84 billion. Berkshire Hathaway currently owns 9.3% of the cola manufacturer.Does owning this business justify itself? At the beginning of the year, the value of the Coca-Cola stake was $21.4 billion, today it is about $17.84 billion, that is, the asset has depreciated by almost $3.6 billion in four months. Now the securities are almost close to the level of January 2019, but they are still 19% cheaper than at the beginning of 2020.Shares of Buffett's favorite - Coca-Cola - may rise in price by 12.7% during the year, to $52, according to analysts surveyed by the Refinitiv service. Of the 22 respondents, 16 recommended buying securities, and six more recommended keeping them in a portfolio.4. American ExpressAnother financial asset in the Berkshire Hathaway portfolio is American Express. The company is known worldwide for its credit cards and traveler's checks. Buffett's company owns 18.8% of the capital of American Express.Over the past four months, the American Express package in the Berkshire Hathaway investment portfolio has depreciated by $5.72 billion. As a result of the "coronavirus" fall, which began at the end of February, securities collapsed by 51% in a month. The shares recovered most of these losses — from the end of March to May 7, their value increased by 30%.Wall Street analysts continue to believe in American Express. Industry experts predict the growth of securities during the year by 13.4%, to $100.52. Half of the respondents (14 out of 28) recommend buying shares, 13 experts adhere to the hold recommendation, and only one analyst advises selling securities.5. Kraft HeinzAmong the ten largest assets in the Berkshire Hathaway portfolio is a stake in Kraft Heinz. Warren Buffett owns 26.7% of the ketchup manufacturer. The value of the asset for four months decreased by $1.07 billion.A year ago, Warren Buffett admitted that he had greatly overpaid for Kraft Heinz. Since then, the shares of the food holding company have become even cheaper — they have fallen by 33% over the past 16 months. Since the beginning of the COVID-19 pandemic, the fall in securities has intensified, but since the market began to recover from a strong collapse in mid-March, the shares have managed to reduce losses in price. As a result, the decrease in securities since the beginning of this year amounted to 10.3%.According to the consensus forecast of Refinitiv, the securities of the American food holding may rise by 4.5% during the year, to $30.79 per piece.6. Wells FargoThe third largest financial asset of Berkshire Hathaway is Wells Fargo Bank. Berkshire Hathaway's share in the bank's capital is 8.5%. This is 4.48% of the value of the entire investment portfolio.In the four months of 2020, the value of Wells Fargo in Buffett's portfolio has halved — from $17.38 billion to $8.72 billion. Securities fell by 53.1% against the background of the coronavirus pandemic.According to Refinitiv surveys, Wells Fargo's quotes may rise by 25.7% to $32.07 in the next 12 months. 17 analysts recommend holding shares in portfolios. Only three analysts advise buying Wells Fargo securities, and seven give a recommendation for sale.7. Moody'sMoody's asset is one of the oldest in Buffett's investment portfolio. The holding first invested in it in 2001. Now the package of the international rating agency has more than 24.6 million shares. Berkshire Hathaway's share in Moody's capital exceeds 13%.The rating agency's share price doubled from January 2019 to February 2020 — from $140 to $287 per share. But then the "coronavirus" collapse deprived the paper of 42% of its value. But even with this in mind, the company's shares have grown by 4.3% since the beginning of the year. And their value in Buffett's portfolio increased from $5.85 billion to $6.11 billion.The securities exceeded all Wall Street expectations and are now trading 3.8% above the annual target set by the Refinitiv consensus. At the same time, none of the analysts surveyed gives a recommendation to sell. And the recommendations buy and hold are equally in the consensus.8. JP Morgan ChaseThe fourth financial asset in the portfolio is one of the largest American investment banks, JP Morgan. As of December 31, 2019, Berkshire Hathaway had more than 60 million shares of JP Morgan worth $8.3 billion in its portfolio. But this package has significantly devalued since the beginning of the year — by May 7, its value fell by $2.82 billion, to $5.48 billion.Since January 2019, JP Morgan shares have been growing until February 19, 2020. But on the general wave of the falling market, the securities fell by 44%. Now the bank's shares are recovering, but their price is still 34.6% lower compared to the beginning of the year.Refinitiv's consensus forecast is optimistic: JP Morgan shares are expected to grow by 13.6%, to $105.42. But only 12 out of 26 analysts recommend buying securities, 13 advise keeping them in portfolios, and one recommends selling them.9. U.S.BancorpIn the top ten of Warren Buffett's portfolio, there is a stake in U.S. Bancorp, the fifth largest US bank by assets. Berkshire Hathaway conglomerate owns 9.9% of the financial holding company. Since the beginning of the year, when the asset was estimated at $7.85 billion, its value has fallen by $2.72 billion.U.S. Bancorp shares rose by almost 30% in 2019, but since the beginning of 2020 they have lost all this growth, falling by 42.3% against the background of the general market collapse.Analysts positively assess the holding's securities — the Refinitiv consensus forecast indicates a potential of 19.5% - up to $41.33 for the next year. If the papers have already been purchased, then they should be kept in a briefcase. Recommendations for the purchase of U.S. Bancorp shares were given by seven experts, for the sale — by four.10. Bank of New York MellonA block of shares of Bank of New York Mellon (1.5% of the value of the entire portfolio) displaced shares of another American bank — Goldman Sachs (1.21% of the portfolio value) from the top ten assets of the Berkshire Hathaway portfolio.Buffett's company owns 10% of the capital of Bank of New York Mellon. Since the beginning of the year, the package has depreciated by $1.36 billion. The bank's shares have started to decline in price since the beginning of the year, losing about 30% of their value.Wall Street analysts give a positive outlook on Bank of New York Mellon securities. During the year, the shares can rise by more than 20%, up to $43, according to experts surveyed by Refinitiv. Seven of them recommend buying bank shares, nine — holding already purchased securities, and one — selling.SummaryBerkshire Hathaway's investment portfolio has depreciated by 24%, or $61.5 billion, since the beginning of the year. If on December 31, 2019, its cost was $256 billion, then on May 7-a little more than $194.5 billion.An analysis of the dynamics of the top 10 stocks in the portfolio shows that all securities, with the exception of Kraft Heinz shares, grew during 2019. Their growth was interrupted by an outbreak of coronavirus, which caused a global market collapse from mid-February to mid-March this year. Only two stocks from the top 10 - Apple and Moody's — managed to recover losses after the so-called "coronavirus" fall and show positive dynamics since the beginning of the year.Read more: How to invest in stocks and what you need to knowThere was only one change in the top 10 assets of Buffett's portfolio — Goldman Sachs lost the tenth position to Bank of New York Mellon.Compared to the beginning of the year, Berkshire Hathaway's portfolio has four fewer shares. In April, Warren Buffett sold all shares in American Airlines, Delta Air Lines, United Airlines and Southwest Airlines. However, none of the airlines was included in the top ten assets of the portfolio, so the sale of the air transportation business did not affect the total value of the largest assets of the ...
Electronics and software maker Apple (NASDAQ: AAPL) said it will produce the recently unveiled iPhone 14 in India as the tech giant moves some of its production from China.The company unveiled the flagship iPhone 14 at an event in early September, focusing on security updates. "The new iPhone 14 lineup introduces revolutionary new technologies and important security features. We are excited to begin production of the iPhone 14 in India," Apple said in a statement.JPMorgan analysts expect Apple to move about 5 percent of iPhone 14 production from late 2022 to India, which is the world's second-largest smartphone market after China. Apple could produce one in four iPhones in India by 2025, experts say.Apple shares were down 1.51% to $150.43 a share in trading on Sept. 23, and added 0.13% ($150.62) in the postmarket. More about Apple tradingIf you are interested in Apple analytics, we recommend you to visit the analytics page, where you can find the latest analytics on stocks from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest Apple forecasts and signals contain support and resistance levels, as well as stop-loss ...
Electronics and software maker Apple plans to use an updated version of Taiwan chipmaker TSMC's latest chip technology in its iPhone and Macbook next year, Nikkei Asia reported.The A17 mobile processor, which is currently under development, will be mass-produced using TSMC's N3E chip manufacturing technology. It is expected to be available in the second half of 2023. The A17 is planned to be used in a premium version of the iPhone line, which is scheduled for release next year.Shares of Apple on NASDAQ were down 5.87% to $153.84 per share in trading on September 13 and were up 0.73% to $154.96 in premarket trading on September ...
Electronics and software maker Apple unveiled new iPhones, AirPods and Apple Watches, including the Apple Watch Series 8.The latter were demonstrated by Apple Chief Operating Officer Jeff Williams. Among the new features are temperature measurement and updated menstrual cycle tracking. The new device will be priced from $399 for the version with GPS, and sales will begin Sept. 16. The Apple Watch Ultra in a titanium case for extreme sports enthusiasts was also unveiled.Wireless headphones AirPods Pro 2 with the latest chip H2 were presented by the head of the company Tim Cook. The headphones will provide better sound quality as well as even better noise cancellation. AirPods are available for pre-order now, and will be available for purchase starting September 23 for $249.The iPhone 14 lineup includes the 6.1-inch iPhone and the 6.7-inch iPhone Plus. Both models feature Dolby vision, HDR, 1,200-nits brightness screens and come in five colors, including a new shade of blue. The new smartphones have a powerful battery. The iPhone 14 and iPhone Plus models feature the A15 Bionic chip and a new image processing system to capture better photos and videos. Apple has developed a new feature that allows you to call emergency services via satellite. It will be free for two years and will appear in the U.S. and Canada in November. The new iPhone 14 and iPhone 14 Plus cost $799 and $899, respectively, and will be available for pre-order starting Sept. 9, and will go on sale Sept. 16 and Oct. 7.The iPhone 14 Pro lineup features two models with a new camera, high peak brightness (up to 2,000 nits) and Always-On Display. The iPhone 14 Pro and iPhone 14 Pro Max are powered by the A16 Bionic processor. Their prices start at $999 and $1099.Apple shares rose 0.93% to $155.96 a share in trading on Sept. 7, and added 0.05% in the post-market, ending trading at ...
India will test a parallel testing strategy to speed up security approvals for new electronic devices, which could accelerate plans to release devices by companies such as Samsung and Apple, Reuters reported.The move comes as India tries to address business bottlenecks and Prime Minister Narendra Modi is optimistic about the electronics manufacturing industry, which his government plans to grow to $300 billion by 2026.The plan for simultaneous testing of various device components could cut product testing and certification time by five to eight weeks.Reportedly, the first device to undergo faster testing could be headphones, and the government will decide on other products ...
Apple shares are trading 11% higher than the marks of the beginning of 2021. A recent report contained weaker-than-expected data due to problems on the production side: a shortage of chips and the suspension of factories associated with the pandemic. For some reason, investors hoped to the last that Apple could somehow easily cope with the difficulties that had arisen. In fact, the final results were $1.6 billion worse than the consensus forecast. This is a historic moment: since 2018, the company has never reported worse than expected.iPhone sales grew by 47% YoY and accounted for 47% of the company's total revenue. As you can see, the sale of smartphones still accounts for a significant share of business. "Services" also play an important role: revenue in this area increased by 26% YoY and its share in the overall results exceeds the total revenue from the sale of iPads and Macs. Problems with supply chains do not affect this segment in any way, so it will continue to have a positive impact not only on revenue, but also on gross margin.The December quarter is the most important for Apple, so the future fate of the stock will depend on its results. It is expected that the manufacturer will report a gross margin of 41.5-42.5%, which will not only be 200 basis points higher than in the same period last year, but will also be the highest figure in the last few years. This year, management has adopted a $86 billion share repurchase program, while there is still $66 billion in cash on the balance sheet for further operations. In other words, even with the values of the P/S coefficient in 25x, AAPL still retain their ...
Zepp shares are trading 35% below the marks of the beginning of 2021. The shares of Chinese companies look undervalued compared to American ones, as a result of which the purchase of promising tools from China makes sense. Mainly Zepp are known for the production of consumer devices like Mi Band - budget "smart" watches that track fitness activity. They are also sold through Amazon, where they cost from $46.The main "chip” Zepp is accessibility, not quality at all. Mass-market orientation brings excellent income. In addition to watches, the company produces headphones and "smart" treadmills, which also stand out for their low price compared to analogues like Peloton.According to the results of the second quarter, revenue increased by 61% yoy, to 1.84 billion yuan (about $280 million), while the volume of shipments of devices increased by 29% yoy, to 11.5 million. Such a solid increase in income was achieved largely due to the relatively weak last year's results related to the production cycle. The Mi Band of the fifth version was launched in the third quarter of last year, while the bulk of deliveries fell just in the second quarter. In the third quarter, management expects revenue of 1.6-1.8 billion yuan, which is 2 billion yuan less than last year. However, if we combine the figures for the first half of the year and the forecast values for the third quarter, we will get the values of 4.7 billion. These figures are higher than last year's 4.4 billion yuan. New Zepp devices, such as the compact Airrun treadmill, will accelerate revenue growth in the coming ...
Companies registered in the United States have always been larger than their European counterparts, but over the past year the gap has widened. The total market capitalization of the 10 leading European companies at the end of March 2021 was just over 2.3 trillion US dollars, according to the PwC rating of the Top 100 global companies of 2021. This is slightly more than Apple's market capitalization of $2.05 trillion.Meanwhile, the 10 largest US companies were worth a whopping $10.2 trillion, which is 4.4 times more than the 10 largest European companies. The gap widened compared to the previous year, when the 10 largest US companies were 3.5 times more valuable than the 10 largest European companies (USD 6.3 trillion versus USD 1.8 trillion). Moreover, the most expensive European company this year would not even get into the top ten in the United States.The gap widened mainly due to the fact that the US market, led by technology stocks, outperformed European markets for the year ending in March 2021. The five largest US companies by capitalization are technology companies. The value of the 10 largest US companies during the analyzed period increased by 69% compared to the growth of only 38% of the 10 largest European companies.This year, four companies fell out of the top 10 European companies: SAP, Royal Dutch Shell, Unilever and Medtronic. They were replaced by the Dutch semiconductor company ASML Holding; Prosus, the international Internet assets division of the South African Naspers group; Accenture, an Irish business services provider; and the German car manufacturer Volkswagen. Volkswagen and ASML also became the fastest-growing European companies that entered the Global Top 100 last year.The French luxury concern Louis Vuitton Moet Hennessy (LVMH) has risen to the top of the European rating, overtaking the slow-growing Swiss companies Nestle, Roche and ...