Warren Buffet's Descreit Portfolio And Its Top 10 Stock Holdings Worth Nearly $6 Billion

Inside Warren Buffett's Under-the-Radar $6 Billion Stock Portfolio

Hey there, fellow finance enthusiasts! Today, we're going to take a closer look at Warren Buffett's under-the-radar stock portfolio and its top 10 stock holdings, which are worth nearly $6 billion. Here’s the not-so-secret sauce.

A Warren Buffet Recap

For those of you who aren't familiar with Warren Buffett (do you live under a rock?), he is widely regarded as one of the most successful investors in history. He's the CEO of Berkshire Hathaway, a conglomerate that owns a diverse range of businesses, including GEICO, Duracell, and Dairy Queen, to name a few.

Warren Buffet’s Under-The-Radar Stock Portfolio

Warren Buffett also manages an under-the-radar stock portfolio worth $5.9 billion. Through Berkshire Hathaway, Buffett owns a portfolio of stocks worth nearly $300 billion as of September 30, but this portfolio is separate from the one we're talking about today.

Buffett's under-the-radar portfolio is managed by New England Asset Management (NEAM), a wholly-owned subsidiary of Berkshire Hathaway. NEAM provides investment management services that are tailored to insurance companies.

While Buffett has no influence over NEAM's $6 billion portfolio, there are some striking similarities between this portfolio and his main stock portfolio. For one, both portfolios are extremely concentrated, with their top 10 positions making up the vast majority of the assets. In NEAM's case, the top 10 holdings make up a whopping 92% of the portfolio!

NEAM also has a knack for owning some of its stocks for decades, which is a characteristic shared by Buffett's main stock portfolio. And there's considerable overlap in the names of stocks owned by NEAM and Buffett, which suggests that the two portfolios share similar investment philosophies.

So, without further ado, let's take a closer look at NEAM's top 10 holdings as of September 30.

A Closer Look at Warren Buffett's Top 10 Stocks: Highly Concentrated and Similar to his Main Portfolio

Warren Buffett's top 10 stocks, managed by New England Asset Management, are highly concentrated and have many similarities with his main stock portfolio. These stocks include some of the world's most well-known and profitable companies such as Apple, Bank of America, Microsoft, and Chevron. Here’s the full list:

1. Apple
2. Bank of America
3. US Bancorp
4. Chevron
5. HP
6. Diageo
7. Microsoft
8. Bank of New York Mellon
9. JPMorgan
10. Cisco Systems

Apple

At the top of the list is none other than Apple, which is NEAM's top holding and was first purchased by the fund in 2013. Interestingly, that was three years before Buffett decided to add Apple to his portfolio, which is now its largest position.

Apple has been on a tear in recent years, and its stock has delivered massive returns for investors. In fact, Apple is now the most valuable publicly traded company in the world, with a market capitalization of over $2.5 trillion as of this writing.

Bank of America

Next up is Bank of America, which is NEAM's second-largest holding. The fund first acquired Bank of America stock in Q3 2017. Buffett is also a big fan of Bank of America and has been increasing his stake in the bank over the past few years.

Bank of America is one of the largest banks in the world, with operations in more than 35 countries. The bank has been a beneficiary of the recent rise in interest rates, which has boosted its profitability.

US Bancorp

US Bancorp is NEAM's third-largest holding and was first acquired by the fund in Q1 2001. US Bancorp is a regional bank with operations in 26 states. The bank has a strong reputation for prudent risk management and has a long track record of delivering solid returns for investors.

Chevron

Chevron is NEAM's fourth-largest holding and was first acquired by the fund in Q1 2001. Chevron is one of the largest oil companies in the world, with operations in more than 180 countries. The company has a strong balance sheet and has been increasing its dividend payout to shareholders in recent years.

HP

HP is NEAM's fifth-largest holding and was first acquired by the fund in Q3 2021. HP is a technology company that specializes in personal computers and printers. The company has experienced strong demand for its products during the pandemic as more people work and study from home. HP's stock price has also performed well in recent months, which has likely contributed to NEAM's decision to add the stock to its portfolio.

Diageo

Diageo is NEAM's sixth-largest holding and was first acquired by the fund in Q3 2005. Diageo is a British multinational alcoholic beverage company that owns many of the world's top spirit brands, including Johnnie Walker, Smirnoff, and Tanqueray. The company has a strong track record of generating consistent cash flows and has been increasing its dividend payout to shareholders in recent years.

Microsoft

Microsoft is NEAM's seventh-largest holding and was first acquired by the fund in Q1 2001. Microsoft is one of the largest technology companies in the world, with a wide range of products and services, including Windows, Xbox, and LinkedIn. The company has been a beneficiary of the recent surge in demand for cloud computing services and has delivered strong earnings growth in recent quarters.

Bank of New York Mellon

Bank of New York Mellon is NEAM's eighth-largest holding and was first acquired by the fund in Q1 2015. Bank of New York Mellon is one of the oldest banks in the United States and provides a wide range of financial services to institutional clients, including asset management and custody services. The bank has a strong balance sheet and has been increasing its dividend payout to shareholders in recent years.

JPMorgan

JPMorgan is NEAM's ninth-largest holding and was first acquired by the fund in Q1 2001. JPMorgan is one of the largest banks in the world and provides a wide range of financial services, including investment banking, asset management, and retail banking. The bank has a strong track record of generating consistent profits and has been increasing its dividend payout to shareholders in recent years.

Cisco Systems

Cisco Systems is NEAM's tenth-largest holding and was first acquired by the fund in Q1 2001. Cisco is a technology company that specializes in networking hardware and software. The company has a strong market position and has been investing heavily in new growth areas, such as cloud computing and cybersecurity.

Warren Buffett's Top 10 Stock Holdings: A Testament to His Investment Philosophy

So, there you have it, folks – a closer look at Warren Buffett's under-the-radar stock portfolio and its top 10 holdings. While Buffett has no influence over NEAM's portfolio, the similarities between the two portfolios suggest that NEAM shares many of the same investment philosophies as Berkshire Hathaway. And with some of the world's top companies in its portfolio, NEAM's stock portfolio is definitely worth keeping an eye on.

Pepper's Key Takeaways

Here are my thoughts on these stock picks:

1. Warren Buffett's investment philosophy is based on a highly concentrated portfolio of top-performing stocks, which is evident in both his main stock portfolio and NEAM's stock portfolio.
2. NEAM's top 10 holdings are made up of some of the most well-known and profitable companies in the world, such as Apple, Bank of America, and Microsoft. These companies have strong balance sheets and consistent cash flows, making them attractive investments for NEAM and Berkshire Hathaway.
3. NEAM has a knack for owning stocks for decades, similar to Buffett's philosophy of buying and holding stocks for the long term. For example, Apple was NEAM's top holding, purchased in 2013, three years before Buffett decided to add the stock to his portfolio, which is now its largest position.

As always, stay tuned for more insights and analysis from Pepper at Salt & Pepper Finance. And don't forget to sign up for our newsletter to get the inside scoop on what traders are talking about – delivered daily to your inbox. Until next time, happy investing!